Insurance market

The insurance market is a trading place where insurance protection is offered (offer) and in demand. In the contract, insurance cover is "exchanged" for the calculated premium . This market is shaped by the information situation and the interests of the market participants.

The scientific discipline that has dealt with the insurance market, insurance economics .

Market participants

Participants in the insurance market are:

The insurance customers ( policyholders )
The insured person , who is mostly congruent (but not mandatory) with the policyholder
Insurer (risk carrier)
Insurance distribution ( insurance intermediary ). Tied to one or more insurers, directly employed, via their own agencies or via independent intermediaries, so-called insurance brokers (or also brokers or brokers , called insurance brokers)
The reinsurers
The outsourcing partners of the insurers (e.g. for claims handling, IT)
Other partners (training institutes etc.)
The legislature (within the framework of legislation with, for example, the BGB, the more specific HGB and VVG, the supervisory standard of the VAG or area regulations on BetrAVG , EStG, etc.)
The supervisory authorities (for example with the financial services regulator BaFin )
statutory insurance (consisting of four pillars: statutory pension insurance , statutory health insurance together with statutory long-term care insurance and statutory unemployment insurance to cover basic needs).

The insurance market can be divided into the private and industrial sectors.

Private insurance

In Germany there is a large number of insurance companies for private customers who offer compulsory insurance (e.g. motor vehicle liability), property insurance such as household / liability or accident insurance or life / pension / occupational disability or health insurance . Overlaps with commercial risks can arise, for example, in the life insurance market. For example, in the area of key worker insurance , partner insurance or in the areas of company pension schemes (e.g. direct commitment ).

Commercial insurance

The insurance companies for industrial risks usually insure major risks from trade, production and capital investment. Because of its complexity and volatility, this branch of insurance is only offered by a few, mostly global insurance companies or consortia . Consortia also operate in the life insurance market for sectors such as metal, chemistry or the clinic.

instigation

Security is one of the basic human needs. Life harbors risks and dangers that can threaten health, life, property or assets. Because of uncertainty about future events, people have always wanted to “protect” themselves with insurance . Today in the industrialized countries it is hardly possible to live without insurance.

The insurance market is an important employer in the tertiary sector in highly developed economies and a prerequisite for being able to enter into certain high-risk activities at all.

Insurance markets of individual countries

Austria

The interests of companies active in the private insurance market in Austria are represented by the Association of Austrian Insurance Companies (VVO) , which was founded in 1899 .

The premium volume on the Austrian insurance market in 2007 was € 15.874 billion. The premium income in the life insurance lines was highest at € 7.206 billion and property / casualty insurance at € 7.184 billion. In the health insurance line, € 1.483 billion was received. In property / casualty insurance, premium income of € 2.830 billion was achieved in motor insurance (motor vehicle liability and comprehensive insurance). Insurance benefits in 2007 amounted to € 10.759 billion.

As of the end of 2007, Austrian insurance companies had investments of € 71.175 billion.

The following table lists the 10 largest insurance companies in Austria by market share in 2007 (percentages):

Item	Companies	2007 market share	Market share 2006
1	Wiener Städtische	15.33	15.30
2	Assicurazioni Generali	13.35	13.39
3	Uniqa people	7.87	7.94
4th	Uniqa Sach	5.86	5.91
5	Alliance Elemental	5.68	5.81
6th	Savings Banks Insurance	5.09	5.52
7th	Danube	4.45	4.32
8th	Raiffeisen insurance	4.26	4.84
9	BA-CA insurance	3.43	-
10	Desert red	3.23	3.37

Switzerland

The Swiss are among the best insured people in the world. According to Swiss Re statistics, in 2002 one resident of the country accounted for the equivalent of $ 4,900 in personal insurance premiums. Of course you have to be careful with such comparisons. In countries with largely state-funded health insurance or old-age provision, lower per capita premiums can mean a similar level of coverage. In any case, the private customer market in Switzerland has high penetration rates; almost every household has a policy with different companies. Despite already high penetration rates and tough competition, the premiums show an increasing tendency in the long term. In particular, capital-forming life insurance policies for private provision are still viewed as a growth sector.

In 2007, the Swiss private insurance industry employed 85,000 people, around 47,000 of them in Switzerland and 38,000 abroad. The total premium volume in 2006 was CHF 161.8 billion (domestic business: CHF 52 billion / abroad: CHF 109.8 billion). See also: svv.ch

In 1885, the Insurance Supervision Act (VAG) was introduced in Switzerland . It primarily serves to protect the insured. Since then, the private insurance companies have been controlled by the federal government, on the one hand by granting a license to conduct business and on the other by continuously monitoring their insurance activities. The VAG is currently being completely revised. Insurers are given more entrepreneurial leeway, for example by abolishing preventive product controls. They will be replaced by refined and risk-based solvency controls; In addition, other effective supervisory instruments that are important for consumers will be created for improvements in the areas of corporate governance, transparency and consumer protection. In this way, insurance cover and the solvency of the insurance companies should also be guaranteed in the future.

With Swiss Re , the second-largest reinsurer in the world (net premiums 2008: 24.30 billion US dollars ) comes from Switzerland.

Turkey

The Turkish insurance market is a growing part of the Turkish financial industry and is largely characterized by composite insurance, which accounted for around 87 percent of premiums in 2017, with motor insurance making up by far the largest share. In contrast, the life insurance sector accounts for just under 12 percent. Insurance penetration is still relatively low, although the country has a population of 75 million people and a high proportion under 30. There are 61 insurance companies in Turkey. These include 37 composite insurers, 4 pure life insurers and 2 reinsurers. Due to the growth opportunities, many international players are active in the market. The largest composite insurers include Allianz Sigorta AŞ, Axa Sigorta AŞ and Mapfre Sigorta AŞ. The most important sales channel so far have been banks, through which more than three quarters of all insurance policies - measured by premium volume - are sold.

According to the new presidential system, insurance supervision is subordinate to the president. Earthquake coverage is mandatory in property insurance for private households, as Turkey is located in a highly seismically active zone.