European insurers see improved results for 2003

2003 yearend results for European insurers show total premium income up 0.9% and investment income rising 6.9%, according to results from the Comite Europeen des Assurances (CEA).In its “European Insurance in Figures”, the CEA notes total number of companies in the European market dropped by 0.8% in 2003, to 5,162, while the number of employees in the industry also declined by 0.1% to 1.05 million.But results were stronger for those companies still in the market, with premium income reaching EUR 855.5 billion (2002: EUR 863.6 billion), and investment income coming in at a whopping EUR 5.3 trillion (EUR .Non-life insurance was the stronger performer, showing growth of 5.3%, while life insurance actually showed negative growth of 1.9%. “This is essentially due to the sharp drop noted in life insurance on the British and Spanish market, which together represent almost 30% of the European total,” notes a CEA press release.The 5.3% growth for non-life insurers, which represents direct written premiums of EUR 347.3 billion, is still shy of the growth level of 6.5% recorded in 2002 when premiums were EUR 333.5 billion. Investment income was truly the turnaround point, with the 6.9% growth in 2003 coming after a decline of 1.3% in 2002, when investment income was EUR 5.1 trillion.In Europe, about 31% of the market is made up of p&c insurance, compared to 10% accident and health, and 59% life in terms of direct written premium.The European market represents 32% of the total worldwide insurance market, compared to 40% for North America, and 24% for Asia.The CEA wants to focus on the intense regulation currently in place in Europe, and the need to harmonize this regulation across member nations of the European Union. Currently about 30 regulatory bodies oversee insurance in the EU.