Luxembourg Insurance Report Q1 2016
BMI View: The medium to long-term outlook for Luxembourg's insurance market remains largely positive.Both the life and non-life sector, following a contraction in 2015, are expected to record solid growth ofaround 5-6% annually from 2016 until the end of the forecast period in 2019. Non-life insurance is lessdeveloped than the more established life sector and, due to a several factors including declining vehiclefleets and a stagnant property market we expect life insurance to outperform the smaller non-life line.
The insurance market, particularly the life sector, is highly competitive and fragmented which does createbarriers for new entrants and moving forward we would expect to see some market consolidation, withsmaller groups losing out to international conglomerates.
Key Updates And Forecasts
Luxembourg reportedly plans to implement a tax on registered cars - the 3% tax on liability insurancewill fund the Duchy's emergency services.
Following a difficult year in 2015, Luxembourg's well established life sector is expect to return to growthfrom 2016 onwards leading to premiums of USD34.0bn in 2019, up from USD25.8bn in 2015.
The smaller non-life sector is also expected to record solid growth over the latter stages of the forecastperiod, with gross non-life premiums forecast to increase from USD3.4bn in 2015 to USD4.6bn in 2019.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook