Non-life insurances - Germany

Germany

The Non-life insurance market in Germany is projected to reach a market size (gross written premium) of €152.20bn in 2024.
On average, each person in Germany is expected to spend €1.83k on Non-life insurance in 2024.
The gross written premium is anticipated to grow at an annual rate of 3.22% (CAGR 2024-2028), resulting in a market volume of €172.80bn by 2028.
In comparison to other countries, the United States is expected to generate the highest gross written premium in the Non-life insurance market, amounting to €3,126.0bn in 2024.
Germany's non-life insurance market is experiencing a surge in demand due to the country's strong economy and high levels of insurance awareness among its citizens.

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Analyst Opinion

In Germany, the Non-life insurances market is experiencing notable developments.

Customer preferences: Customers in Germany are increasingly seeking comprehensive non-life insurance coverage that not only protects their assets but also offers additional benefits such as liability coverage and assistance services. There is a growing demand for tailored insurance products that cater to specific needs, driving insurers to innovate and diversify their offerings to meet these evolving preferences.

Trends in the market: One prominent trend in the German non-life insurance market is the rise of digitalization. Insurers are leveraging technology to streamline processes, enhance customer experience, and offer more personalized products. Additionally, there is a noticeable shift towards sustainable and environmentally friendly insurance solutions, reflecting the growing awareness of climate change and sustainability among both insurers and customers.

Local special circumstances: Germany's strong regulatory environment and high standards for consumer protection play a significant role in shaping the non-life insurance market. Insurers must adhere to strict regulations, which fosters trust among customers and ensures the stability of the market. Moreover, the competitive landscape in Germany is characterized by a mix of domestic and international insurers, leading to a diverse range of products and pricing strategies.

Underlying macroeconomic factors: The overall economic stability and robust financial system in Germany provide a solid foundation for the non-life insurance market to thrive. As the largest economy in Europe, Germany offers insurers ample opportunities for growth and expansion. Furthermore, factors such as low interest rates and changing demographics influence the market dynamics, prompting insurers to adjust their strategies to remain competitive in the evolving landscape.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.