The insurance industry

Having demonstrated its robustness in the recent years of crisis, the international insurance industry will make another important contribution to economic stability in the volatile climate of 2012. In global terms, the insurance sector should be able to consolidate its role in the economy and society. Insurers operate in the field of loss limitation, loss prevention and risk diversification; in this way they support economic development. They not only spread risks across a number of actors, they also help to shape markets and serve as a catalyst for financing and investments. The German Insurance Association (GDV) anticipates slight growth in premium income overall for the German insurance industry, provided the broader economic environment does not take a significant turn for the worse.

By international standards, the insurance industry in Germany is growing, if anything, at a below-average pace. In property and casualty insurance changes in the market cycle are likely to encourage premium growth. The concept of private individual provision will also take on increasing prominence, with favourable implications for growth in life and health insurance – not only in Germany but also in many other industrialised nations.

The preparations for Solvency II, which envisages the implementation of insurance supervision on the European level and a risk-based solvency system, is creating incentives to take an even more professional approach to risk management. Not only that, Solvency II will lead to greater stability and increased competitiveness in the industry, which can ultimately only benefit policyholders. For reinsurers, the arrival of Solvency II means new business opportunities, since it will promote not only the supply of but also demand for insurance protection.