The Italian insurance market

Key messages

• In 2017, Italian GWP declined by 2.4% to €131bn with life business falling by 3.6%, partially compensated by non-life increasing by 1.2%. Premiums represented ca. 8% of Italian GDP, representing the 4th highest ratio in Europe
• Technical results decreased by 10.9% from 2017 due to higher incidence of costs over lower volumes in life and impact of catastrophic events for non-life
• Insurers investments continue to be primarily allocated in bonds (76% of the total investment portfolio), even though alternative types of investment, such as funds, are becoming increasingly relevant
• After the adoption of Solvency II in 2016, insurers are putting great effort on capital management, reflected by the increase of the market Solvency ratio to 241% in 2017 (221% in 2016)
• Fintech (33 insuretech entities in Italy) and healthcare represent major disruptions for the insurance sector with businesses affected recording double digit growth
• Proper investments in cyber insurance risk management may guarantee to insurers a significant advantage towards competitors, as the Italian industrial 4.0 framework will demand protection from cyber attacks
• 2018 forecast figures consider an increase to ca. €134bn GWPs due to growth in both life, where traditional products will be supported by rising interest rates, and non-life, driven by demand for innovative products