AUTHORISATION

SECTION I
FUNDAMENTALS OF THE UBI MARKET
B. Why many insurance markets are not profitable
1. A maturing business in the most advanced markets
As shown in the figure below, there is a wide contrast between the growth in the
most developed markets, comprising North America, Western Europe and Japan
and other regions.
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Fig 1.16: Non-life insurance growth is flat in the most advanced markets
25 %
20 %
15 %
10 %
5 %
0 %
-5 %
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-10 %
-15 %
Emerging Asia Middle East Latin America Central and Eastern Europe Developed markets
2008 2009 2010 2011 2012 2013 2014
Source: Swiss RE
With a 35% share of the global market in 2014, the European insurance industry is
the largest in the world, followed by North America (29%) and Asia (28%). Yet,
while the number of passenger cars in use is growing at an average growth rate of
1-2%, the European motor insurance market has stagnated.
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As shown in the chart below, premiums generated by the industry have grown only
very slowly since 2006. Given that the number of passenger cars in use has
increased in all countries, this obviously means that the average premium has
decreased.
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On a country basis, the weak growth in premiums has not been uniform across
Europe; the prolonged recession has hit the Western peripheral countries the
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