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zeb.European Insurance Study 2019
Europe’s insurers are facing major challenges because they lack the capacity to grow. They have made solid profits in recent years despite low interest rates. Additionally, almost all insurers were able to overcome the hurdles of Solvency II and have a solid capital base. However, they are struggling to grow in saturated markets with established or innovative products. With an average growth of their gross written premiums of 1.2 percent, the 25 largest players in the European insurance market are only making little progress, and new booming markets are not in sight. Against this background, the targeted use of data science, in particular, offers perspectives that may be used by Europe’s insurers to boost their growth again.
These are the core results of the European Insurance Study by zeb. The strategy and management consultancy specializing in financial services has looked at the current state of insurers in Europe. The study authors have analyzed the keys to success that boost the growth leaders and consequently derived recommendations for the future. The study is based on a comprehensive analysis of growth and solvency figures of the 25 largest European insurance groups and includes an in-depth data analysis of the European insurance markets.
Dr. Jan Hendrik Sohl, Partner at zeb, explains: “The European Insurance Study confirms that overall, Europe’s insurance industry lacks the capacity to grow. Especially big insurers are stagnating; what growth there is mostly comes from small and medium-sized companies. The main challenge now is to find more growth again in saturated markets in the future.”
Growth champions with innovative products and customer benefit
The study shows: there are by all means insurers who achieve above-average growth in their domestic markets, both in life insurance and in property and casualty. The study authors demonstrate in detail how growth is possible for these companies through innovative products with clear customer benefits or products for special target groups. It also reveals how insurers can achieve above-market growth by developing new distribution channels and optimizing existing ones.
Targeted analysis and use of data determines growth
Many of the European growth champions identified are already using data science to optimize their business models. According to the study authors, however, most insurers are not making sufficient use of their possibilities and thus confirm the results of zeb’s digitalization study on the European insurance industry published in August (Digital Pulse Check 2019). Innovative business approaches hardly emerge, which is partly due to the fact that many insurers can still be successful without analyzing and using their data in a targeted manner.
Dr. Mark Hahmeier, Senior Manager at zeb, concludes: “These days, insurers who are not digital pioneers can still be successful. This will change in the foreseeable future. The use of data science will be one of the key factors for success or failure in the European insurance market.”
zeb was founded in 1992 and is one of the leading strategy and management consultancies for financial services in Europe. In Germany, zeb operates offices in Frankfurt, Berlin, Hamburg, Munich and Münster (HQ). Its international locations are in Amsterdam, Copenhagen, Kiev, London, Luxembourg, Milan, Moscow, New York City, Oslo, Stockholm, Vienna, Warsaw and Zurich. Its clients include European large-cap and private banks, regional banks, insurers as well as all kinds of financial intermediaries. Several times already, zeb has been classed and acknowledged as “best consultancy” for the financial sector in industry rankings.
About zeb
zeb was founded in 1992 and is one of the leading strategy and management consultancies for financial services in Europe. In Germany, zeb operates offices in Frankfurt, Berlin, Hamburg, Munich and Münster (HQ). Its international locations are in Amsterdam, Copenhagen, Kiev, London, Luxembourg, Milan, Moscow, New York City, Oslo, Stockholm, Vienna, Warsaw and Zurich. Its clients include European large-cap and private banks, regional banks, insurers as well as all kinds of financial intermediaries. Several times already, zeb has been classed and acknowledged as “best consultancy” for the financial sector in industry Rankings.
zeb Contact
Franz-Josef Reuter
Head of Public & International Affairs
Phone +49 251 97128 347
E-Mail franz-josef.reuter@zeb.de
