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Wednesday 11 March 2015

Life Insurance Market Trends and Opportunities in Portugal to 2018

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Synopsis

The report provides in-depth market analysis, information and insights into the Portuguese life insurance segment, including:
The Portuguese life insurance segment’s growth prospects by life insurance category
Key trends, drivers and challenges for the life insurance segment
The various distribution channels in the Portuguese life insurance segment
The detailed competitive landscape in the life insurance segment in Portugal
Detailed regulatory policies of the Portuguese insurance industry
Analysis of various consumer segments in Portuguese life insurance
Key developments in the Portuguese life insurance segment
New products launched by Portuguese life insurers

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Executive summary

Life insurance was the largest segment in the Portuguese insurance industry in 2013. Portugal’s weak economic environment and rising unemployment rate, as a result of the financial crisis and the subsequent sovereign debt crisis, led to a decline in life insurance sales during the review period (2009–2013). The segment declined at a compound annual growth rate (CAGR) of -2.6%. However, the segment is expected post a forecast period (2013–2018) CAGR of 2.0% due to projected economic growth following Portugal’s bailout program in May 2014.

The life insurance segment is highly concentrated, with the 10 leading insurers accounting for 91.6% of the segment’s gross written premium in 2013. As of 2013, 30 insurers – domestic and foreign – were operational in Portugal.

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Scope

This report provides a comprehensive analysis of the life insurance segment in Portugal:

It provides historical values for the Portuguese life insurance segment for the report’s 2009–2013 review period, and projected figures for the 2013–2018 forecast period.
It offers a detailed analysis of the key categories in the Portuguese life insurance segment, along with market forecasts until 2018.
It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions.

It analyses the various distribution channels for life insurance products in Portugal.
It profiles the top life insurance companies in Portugal and outlines the key regulations affecting them.

Reasons to buy

Make strategic business decisions using in-depth historic and forecast market data related to the Portuguese life insurance segment and each category within it.

Understand the demand-side dynamics, key market trends and growth opportunities in the Portuguese life insurance segment.
Assess the competitive dynamics in the life insurance segment.
Identify the growth opportunities and market dynamics in key product categories.

Gain insights into key regulations governing the Portuguese insurance industry and their impact on companies and the industry's future.

Key Highlights

The life insurance segment was the largest segment of the Portuguese insurance industry in 2013.

Portugal’s weak economic environment and rising unemployment rate, as a result of the financial crisis and the subsequent sovereign debt crisis, led to a decline in life insurance sales during the review period.

Portugal was affected by the world economic and sovereign debt crises from 2009 onwards. The country received bailouts from the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Commission (EC) for a sum of EUR78.0 billion (US$97.0 billion) in May 2011, making it the third European country to receive bailouts, after Greece and Ireland.

Due to Portugal’s ongoing economic recession, demand for endowment polices increased as people look for secure revenue for savings and investments.

According to the European Solvency II Survey conducted by Ernst and Young in 2013, Portuguese insurers’ readiness for the implementation of Solvency II was found to be relatively low. Therefore, the implementation of Solvency II in January 2016 is expected to be a major challenge for insurers.

Bancassurance was the largest channel in 2013 followed by agencies.

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