05 Jul 2020
Posted in Insurance
Danish insurers protected by low infection rate, but recession remains a threat, says GlobalData
Denmark’s top ten insurers overwhelmingly depend on the life insurance sector for their premiums, which could lead to increased claims and reduce their ability to invest premiums, according to GlobalData, a leading data and analytics company.
Eight of the leading insurers in the country have in excess of 90% of their premiums in the life insurance industry, while three are exclusively life insurance. Two, Tryg Forsikiring and Codan Forsikiring, have 0% of their premiums in life insurance and are split between various non-life products.
GlobalData analyst, Deblina Mitra, comments: “The top ten insurers in Denmark generate 77% of their business from life insurance, followed by 7% from property and 6% from motor insurance. Denmark’s relatively low COVID-19 infections and deaths point to lower mortality risks for insurers. However, the potential economic downturn could adversely impact premium growth and investment returns.”
GlobalData shows that the top ten life insurers in Denmark generate 79% of the total life insurance business.
Mitra adds: “With exposure of more than 90% of business coming from life insurance, all of the top 10 insurers appear vulnerable to the challenge of maintaining investment returns in a stagnant or recessionary economic condition.”