Private Insurers Faced with Muted Premium Growth in 2006

In 2006, the course of Austrian insurance business differed from the international trend. The global market recorded strong growth rates in life insurance, while the premium income from non-life insurance rose at a considerably more modest pace. In Austria, on the other hand, non-life insurance acted as the motor of growth, whereas life insurance did not add much to the already high starting level from the previous year (+0.9 percent). Seen altogether, premium growth was sluggish (+1.5 percent). Projections for 2007 expect some upturn, driven by the life insurance, to altogether +3.1 percent.