Despite the financial and economic crisis, premium income in the German insurance industry recorded a robust growth of 4.19% in 2009 as compared to 2008. The German insurance industry is dominated by the life insurance segment accounting for approximately 50% of the total market share. The remaining 50% is divided into non-life and health insurance segment.
Pension products dominate the life insurance segment. Life segment has been witnessing growth mainly on account of the demand for annuity and other pension products. These life insurance products function as saving instruments and are used for financial protection. The non-life insurance segment is dominated by motor insurance which accounts for approximately 36.7% of the total non-life premiums.
Improving savings rate, increasing disposable income, decreasing unemployment rate, and strong economy are some of the main factors which are driving the growth of all the industries in Germany including insurance industry. In addition to the above factors, increasing aging population, rising life expectancy rate, chronic health conditions are some other important factors that would be important factors of growth of German insurance industry in the next few years.
With the growth of the economy in the first two quarters of 2010, the decline in the unemployment rate in the beginning of 2010 coupled with low insurance penetration rate compared to other developed countries, the German insurance industry offers growth opportunities for the insurance players.
Allianz Leben dominates the German insurance market followed by Aachener Munchener Leben and R+V Lebensversicherung. Allianz is the market leader in life and non-life insurance, while Debeka leads in health insurance and Munich Re leads in reinsurance.