Reinsurance in Spain, Key Trends and Opportunities to 2016 The Spanish reinsurance segment registered a CAGR of 10% during the review period, despite the global financial crisis and European debt crisis, and increased from EUR2.88 billion (US$3.94 billion) in 2007 to EUR4.21 billion (US$5.86 billion) in 2011. The Insurance Compensation Consortium (CCS) provides coverage for all natural disaster events through a compulsory surcharge based on sum insured, which set a very low requirement for insurers to seek natural disaster reinsurance, which includes unexpected natural and social-political risks. With gradual improvements in the economy and increasing confidence towards insurance products among the Spanish population, the reinsurance segment is expected to grow at a CAGR of 7.3% over the forecast period. Reinsurance rates in Spain increased by 10% to 30% during renewals in 2011 as a result of the occurrence of natural disasters. Treaty reinsurance led the segment during the review period and accounted for 38–40% of the market share whereas facultative reinsurance accounted for 26–28% of the market share. Results in the Spanish reinsurance segment in 2011 were positive in most lines of business, with solid margins continuing for reinsurers in motor, liability lines, engineering and credit where experience has improved in the last few years following losses in 2008. Solvency II standards to influence reinsurance Regulatory changes in the reinsurance segment presented new challenges and opportunities with respect to competitive differentiation. The complete implementation of Solvency II norms in 2014 will benefit the reinsurance segment through increased minimum capital requirement standards and increased risk management capacity of insurers. The segment is expected to observe consolidation in the presence of Solvency II capital requirements. Buy a copy of this report @ http://www.reportsnreports.com/reports/197671-reinsurance-in-spain- key-trends-and-opportunities-to-2016.html Report Details: Published: October 2012 No. of Pages: 103 Price: Single User License: US$1950 Corporate User License: US$3900 Growth of insurance segments will support reinsurance The Spanish insurance industry grew from EUR54.3 billion (US$74.4 billion) in 2007 to EUR59.6 billion (US$82.9 billion) in 2011, registering a CAGR of 2.3% during the review period. The life insurance segment accounted for an industry share of 49.9%, followed by the non-life insurance segment with 37% and the personal accident and health insurance segment with 13.1%. The life insurance segment registered the highest growth rate during the review period with a CAGR of 6.4%. The Spanish insurance industry is expected to grow at a CAGR of 3.6% over the forecast period. Such figures are expected to influence growth in the reinsurance segment. Spanish reinsurance rates were flat or down in January 2011 renewal In the January 2011 renewal, Spanish reinsurance rates either decreased or remained the same. During this period, the property risk and property catastrophe decreased annually by 5% whereas motor and personal accident decreased by 5% to 10%. However, general third party remained the same. Contact firstname.lastname@example.org for more information on this report.
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