Spanish insurance industry to be worth €82.9 billion by 2027
Spain’s insurance industry is forecast to be worth €82.9 billion (US$101.1 billion) in 2027, rising from €64.1 billion in 2022
This represents a compound annual growth rate (CAGR) of 5.3 per cent in the coming years, and reflects a continuation of growth seen in 2022, when the industry grew by 5.2 per cent year-on-year – after having declined by 8.6 per cent in 2020.
According to Sutirtha Dutta, Senior Insurance Analyst at GlobalData: “The growth of the Spanish insurance industry during the last couple of years was driven by the increased awareness for health insurance and financial planning. In addition, the industry's growth has been complemented by the progress of key industries of the economy such as construction, automobiles, and travel.”
General insurance is at the core of Spain’s insurance industry, with the sector accounting for 61.2 per cent of direct written premiums (DWP) in 2022. This sector is expected to grow at a CAGR of 5.5 per cent over the 2022–2027 period, driven by demand for health and motor insurance.
Private health insurance has increased in popularity in Spain in recent years, driven by a shortage of medical professionals and diagnostic equipment in the national health services, resulting in higher waiting periods and less personalised care. In addition, increased health awareness due to the pandemic, as well as the high cost of healthcare that is not covered by the national health service, has also increased demand.
Life insurance and pensions account for the remaining 38.8 per cent share of DWP in 2022 – a sector which is projected to grow by five per cent until 2027, driven by endowment insurance.
“High inflation and the ongoing economic impact of Russia-Ukraine crisis is expected to have a negative impact on the profitability of Spanish insurers in 2023. However, the Spanish insurance industry is poised for higher growth from 2024 onwards backed by continued economic recovery,” concluded Sutirtha.
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