Leading German insurers less focused on life than other European countries, says GlobalData

The top ten insurers in Germany are reliant on life insurance, generating 77% of their GWP from life and health products. This makes them vulnerable to a rise in claims related to mortality and healthcare among the COVID-19 pandemic, as well as lower investment returns led by market volatility. However, many of these firms have more diversified books than other European cotemporaries, offering some hope to the sector, according to GlobalData, a leading data and analytics company.

Deblina Mitra, Insurance Analyst at GlobalData, comments: “Four of the leading ten insurers are exclusively involved with life insurance, while one is centered on life products. This is fairly diversified, when compared with Denmark, where nine out of ten of its leading insurers have at least 90% of their GWP in life insurance. Similarly, only two of the top ten insurers in France had the majority of their GWP in non-life products.

“However, there are risks across the sector. Germany’s biggest insurer Allianz Lebensversicherungs-Aktiengesellschaft is 100% life insurance and holds 20.7% of the entire GWP of the life insurance sector in Germany, which makes it particularly vulnerable to rising claims. Its written premiums may fall in the short-term as life insurers become more cautious about taking on new business in these risky times, but it should be a temporary lull until the pandemic is over.”

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Mitra continued: “A separate division of Allianz, Allianz Versicherungs-Aktiengesellschaft, is the second largest insurer in the country and has a well-diversified book, which should see it fare comparatively well during the pandemic. Its GWP is split between property, motor, liability, financial and personal accident lines. It should see claims slowdown in property and motor, as consumers are encouraged to stay at home, though it is likely to see a rise in financial lines, in particular.”

For more information, email your questions to Rebecca Panks, PR Executive at GlobalData (pr@globaldata.com)

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