Surge in Single Premium Payments Secured Stable Revenues for Private Insurance Business in 2014

By strongly increasing revenues from single premium payments in 2014, the life insurance industry returned to a growth path. In 2014, however, the non-life and accident insurance weakened considerably. Despite an increase in the number of contracts, premium intakes declined. In private health insurance the industry expanded the risk pool and price increases were moderate even though the number of claims increased in line with additional hospital treatments. Preparations for the switch towards Solvency II to be carried out at the start of 2016 still keep the industry busy because the new supervisory regime also demands adjustments in the organisational structure of insurance firms. The regulation in pillars 1 and 2 of Solvency II will increase the fixed cost component in the insurance industry and consequently enlarge returns to scale.