Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Spain's insurance market, though well developed, still offers room for further expansion with
significant gaps in coverage in both the life and non-life sectors. The market is home to major
multinationals and smaller domestic providers and the product offering is diverse and supplied via
extensive distribution channels. While market fundamentals are positive, the short-term growth outlook for
life and non-life insurance remains subdued, hampered by high levels of structural unemployment and, in
the non-life sector in particular, strong downwards pressure on pricing.
Key Updates And Forecasts
- Competition and sluggish growth is keeping downwards pressure on pricing in key lines in Spain's nonlife
sector. Leading insurer Mutua Madrileña, in its latest interim report, highlighted that it was
maintaining a freeze on motor insurance premiums due to competitive pressures.
- Trends such as these underline our forecasts for weak growth in the non-life sector. We are forecasting
non-life premium growth of 0.5% in 2016 to EUR31.5bn which, due to the weakness of the euro against
the dollar, translates to a contraction in US dollar terms of 3.0% to USD33.7bn.
- Slightly stronger growth is expected in the smaller life insurance sector, where premiums are forecast to
grow by 1.3% in local currency terms to reach EUR25.9bn. In US dollar terms this reflects as a
contraction of 2.2% to USD27.7bn.