Continued Expansion of the Insurance Industry

Growth of premium revenues in the Austrian insurance industry accelerated in 1991 and 1992, despite the cyclical slowdown of overall economic activity. Life insurance premium revenues stagnated in 1991, but picked up strongly in the following year. Damage ratios increased considerably in 1991 with the rising number of liability cases, particularly in health, accident and physical damage insurance. Premium rates rose faster than the consumer price index. Capital portfolios shifted further towards securities as the dominant form of investment, the corresponding decline in the share of loans levelled off in 1991. With the above-average rise in net yields from assets their share in gross premium revenues moved up to one-fifth.