Spain is an interesting country for insurance brands. Still packed with physical branches in almost every city zone and small town, Spanish people have good savings habits and value private healthcare options. Despite a socialist government. There’s a stong insurtech hub in Barcelona and plenty of cross-border co-operation in Gibraltar too. Here’s a general overview from GlobalData looking at growth opportunities for insurance brands;
Spain’s general insurance industry is set to grow at a compound annual growth rate (CAGR) of 5.3% from EUR45.7 billion ($48.5 billion) in 2024 to EUR56.6 billion ($60.4 billion) in 2028, in terms of gross written premiums (GWP), forecasts GlobalData, a leading data and analytics company.
According to GlobalData’s Insurance Database, Spain’s general insurance industry is projected to grow by 5.6% in 2024 and 5.2% in 2025. The growth will be supported by personal accident and health (PA&H), motor, and property insurance lines, which are estimated to collectively account for 78.4% share of the total general insurance GWP in 2024.
Anurag Baliarsingh, Insurance Analyst at GlobalData, comments: “The general insurance industry in Spain continued its growth trend for the third consecutive year and grew by 7.0% in 2023, its highest growth over the last five years. The growth was driven by rising demand for private health insurance, prompted by inadequate public healthcare, a recovery in vehicle sales, and increasing investments in infrastructure.
However, with the Spanish economy expected to grow at a slower pace of 1.4% in 2024 and 1.6% in 2025, the general insurance industry will witness slower growth over the next two years.”
PA&H insurance is the leading line of business in the Spanish general insurance industry. It is expected to account for a 29.8% share of the general insurance GWP in 2024. PA&H insurance is expected to grow by 5.3% in 2024, primarily driven by an increase in demand for private health insurance. A shortage of healthcare professionals and medical equipment under national public health services has resulted in long waiting periods for surgical patients.
According to the Spanish Union of Insurance and Reinsurance Entities (UNESPA), around 2.3 million people opted for private health insurance in 2023. As a result, the percentage of the population opting for private health insurance increased from 19.2% in 2022 to 30% in 2023. Factors such as doctor on demand and coverage of mental health have played a pivotal role in the demand of private health insurance. PA&H insurance is expected to grow at a CAGR of 4.9% during 2024-28.
Motor insurance is the second largest line of business, expected to account for 28.4% share of general insurance GWP in 2024. Motor insurance GWP is expected to grow by 5.2% in 2024, driven by rising vehicle sales. According to the Spanish Association of Automobile and Truck Manufacturers (ANFAC), passenger car sales grew by 7.8% during January-April 2024 as compared to the same period over the previous year.
Additionally, as per UNESPA, car insurance premiums registered a substantial increase of 30% in the first quarter of 2024 as insurers responded to inflationary pressures. This will further support the growth of motor insurance in 2024. Motor insurance is expected to grow at a CAGR of 5.0% during 2024-28.
Property insurance is the third largest line, estimated to account for a 20.2% share of general insurance GWP in 2024. Property insurance is expected to grow by 5.2% in 2024, driven by increased government investments in infrastructure development.
As per the government’s recovery plan transformation and resilience strategy, it is planning to invest EUR9.8 billion ($10.4 billion) during 2024-30 towards the second phase of the housing rehabilitation and urban regeneration plan, which aims to improve the sustainability of buildings in Spain as per European standards. Property insurance is expected to grow at a CAGR of 5.5% during 2024-28.
Marine, aviation, and transit (MAT), Liability, Financial Lines and other general insurance products accounted for the remaining 21.6% share of GWP in 2024.
Baliarsingh concludes: “The general insurance industry in Spain is expected to witness an upward growth trend from 2025 onwards, propelled by economic recovery and increased demand of private health insurance. Rising costs due to inflation will prompt insurers to reassess their risk exposure and increase premium prices in the short term.”
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