The Belgian general insurance industry is set to grow at a compound annual growth rate (CAGR) of 4.1% from EUR14.3 billion ($14.7 billion) in 2024 to EUR16.8 billion ($17.7 billion) in 2028, in terms of direct written premiums (DWP), forecasts GlobalData, a leading data and analytics company.

According to GlobalData’s Insurance Database, the general insurance industry in Belgium is expected to grow by 3.6% in 2024, supported by motor, property, and personal accident and health (PA&H) insurance lines that collectively accounted for 76.9% share of the general insurance premiums in 2023.

Prasanth Katam, Insurance Analyst at GlobalData, comments: “Belgium has witnessed slower economic growth in 2023, as the real GDP grew by just 1% as compared to 3.2% and 6.3% growth in 2022 and 2021, respectively. As a result, the growth in Belgium’s general insurance industry slowed down in 2023 and grew by 4.1% after growing by 4.7% in 2022. The trend is expected to continue in 2024.”

Motor insurance is the leading line of business in Belgium’s general insurance industry, accounting for a 31.3% share of the general insurance DWP in 2023. Motor insurance DWP grew by 1.8% in 2023, supported by an increase in vehicle sales. As per Statbel, the Belgian statistical office, car sales increased by 28% to 481,079 vehicles registered in 2023 as compared to 374,597 vehicles registered in 2022.

The sales of hybrid and electric cars in Belgium have also increased considerably over the last five years. Hybrid and electric vehicles accounted for a combined market share of 59% of the total vehicle sales in 2023, as compared to an 8% share in 2019.

Katam adds: “The high prices of electric vehicles and higher repair costs as compared to Internal combustion engine (ICE) vehicles clubbed with rising inflation levels will prompt insurers to increase the premium prices for motor insurance policies in 2024, which will support the growth of motor insurance. Motor insurance is expected to grow at a CAGR of 2.8% during 2024-2028.”

Property insurance is the second largest line, accounting for a 25.7% share of the general insurance DWP in 2023. Property insurance grew by 5.1% in 2023, driven by the growing demand for home multi-risk insurance policies, which accounted for a majority share of property insurance premiums in 2023.

Katam continues: “Smart home sensors that provide real-time alerts for water leaks and other potential damages are promoted by property insurers for early detection of damages and minimizing claims. Policyholders, in turn, can obtain premium discounts for adopting smart home technologies.”

Belgium is prone to natural disasters such as windstorms and floods, which is supporting the demand for Natural-Catastrophic (Nat-Cat) insurance policies. According to the estimates of the European Insurance and Occupational Pensions Authority (EIOPA), in 2023, the penetration of Nat-Cat insurance policies in Belgium was between 75–100%, indicating their high uptake and popularity. Property insurance is expected to grow at a CAGR of 4.7% over 2024–28.

PA&H insurance is the third largest line, accounting for a 19.9% share of the general insurance DWP in 2023. PA&H insurance is expected to grow by 3.9% in 2024 and 4% in 2025, supported by growing health awareness and changing demographic conditions, leading to an increase in the demand for health insurance.

As per the Belgium Federal Planning Bureau (FPB), the number of Belgians aged 65 years and older accounted for nearly 20% of the total population in 2023. With an increase in the aging population, the demand for health insurance that covers acute care, nursing care, home assistance services, and residential care facilities is expected to increase, which will support PA&H insurance growth. PA&H insurance is projected to grow at a CAGR of 4.4% over 2023-28.

Liability, marine, aviation and transit, and financial lines insurance account for the remaining 23.1% share of the general insurance industry DWP in 2023.

Katam concludes: “The Belgium general insurance industry is expected to witness an upward growth trend starting from 2025, in line with the anticipated economic growth. Increasing vehicle sales, growing health awareness, and rising demand for home multi-risk insurance policies will continue to support growth in the Belgium general insurance industry over the next five years.”