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Summary
Since 2020, the life insurance market has faced significant challenges due to the COVID-19 pandemic, impacting premium income and altering customer behavior. The global life and non-life insurance market, valued at approximately $8100 billion in 2023, is expected to grow at a CAGR of over 4% during the forecast period. In Italy alone, life insurance premiums decreased by 11% from the previous year, emphasizing the pandemic's adverse effect, with a 9.5 percent decrease in Branch I life insurance policies. Despite the downturn, there was growth in unit and index-linked policies by 5.7 percent annually, reaching €29.6 billion. Additionally, the distribution of life insurance through bank and post office branches dominates in Italy, commanding 56.9% of the market in 2022. Even though the Italian market saw a reduction in average monthly household spending on life insurance, the demand for life insurance is still driven by consumers' desire for financial support for beneficiaries, and there was a 10.9 percent growth in value spent in 2022. The pandemic also led to an increase in life insurance uptake, with around 3.6 million Italians purchasing life insurance for the first time in 2021. This response was largely driven by the elevated perception of risk due to COVID-19 and other geopolitical tensions that have raised concerns and awareness regarding financial vulnerability among Italians across different age groups.
Evolving Perceptions and Uptake in the Italian Life Insurance Market
In recent years, the Italian life insurance market has witnessed a transformation influenced by various factors, including economic instability, geopolitical turmoil, and health crises like the COVID-19 pandemic. These events have reshaped consumer perceptions, leading to an increased awareness of life's uncertainties and the risks associated with them. The Italian market is characterized by a diverse range of life insurance offerings, designed to cater to the evolving needs and concerns of policyholders. One notable trend is the reduction in average monthly household spending on life insurance, which has decreased compared to figures around 2018. Despite this, the industry saw a rebound in 2022, with spending growth of approximately 10.9 percent. This fluctuation indicates a complex relationship between consumers and life insurance products, with many households evaluating the perceived utility and relevance of life insurance coverage to their specific contexts. Around 34 percent of the new policyholders cited the pandemic as a driving factor for their decision, highlighting the impact of health crises on consumer behavior.
However, the data reveals a protection gap, as around 45 percent of those who recognize their exposure to risks do not follow through with obtaining insurance. A variety of factors, such as limited resources or alternative priorities, might explain this discrepancy. The geographical distribution of demand for life and accident insurance varies across the country, with the northern regions spending the most at nearly 9 euros per month. The central regions follow with around 8 euros a month, while households in the southern regions spend the least, averaging below 4 euros monthly. From a market structure perspective, the number of active enterprises in the insurance sector has remained largely unchanged, with a modest resurgence noted between 2019 and 2021. This stability is echoed in the employment figures within the industry. Sole proprietors, freelancers, and self-employed individuals comprise the majority of the market's legal entities, at over 75 percent. Insurance premiums are concentrated heavily in classes I and III, with 64.3 percent involving revaluable life policies and 30.7 percent unit-linked policies. Despite a slight contraction in class I premiums, the class continues to be substantial, accounting for over 60 percent of the total life insurance premium production. Meanwhile, premiums in classes V and VI exhibit an upward trend, indicating evolving.
Leading Lights of the Italian Life Insurance Market
The Italian life insurance market is a dynamic landscape, home to a plethora of companies each contributing to the sector in unique ways. With a strong focus on customer needs and innovation, these entities range from well-established giants to competitive mid-sized firms, all playing crucial roles in the life insurance value chain. Here's a brief look at some of the key players that add vibrancy and reliability to this important industry.
- Poste Vita S.p.A. Established in 1999 and part of the renowned Poste Italiane Group, Poste Vita S.p.A. is a stalwart in the life insurance sector. With its parentage loyal to Italian heritage, Poste Vita has cemented its position as the market leader, offering a comprehensive suite of insurance products tailored for individual protection and asset growth.
- Intesa Sanpaolo Vita Merging experience and skill, Intesa Sanpaolo Vita stands as a testament to the prowess of consolidation in the insurance sector. Born from the union of several insurance entities, this company brings forth an array of investment solutions and retirement planning options, upholding a commitment to value creation for its clientele.
- Generali Italia As a company steeped in history, Generali Italia encompasses not just a significant portion of the Italian market but also commands a presence on the global stage. Known for its insurance acuity and a diverse product portfolio, Generali Italia continues to innovate in providing coverage that matches the evolving demands of society.
- Alleanza Assicurazioni With a legacy dating back to 1898, Alleanza Assicurazioni is a Generali Group company that focuses heavily on personal savings and long-term investments. Through a nationwide network of dedicated advisors, Alleanza addresses the financial future of millions of Italian families with personalized and forward-thinking solutions.
- Mediolanum Vita Part of the Mediolanum Group, Mediolanum Vita stands out for its modern approach to insurance and pension products. Innovative and user-friendly, their offerings keep pace with market trends and consumer expectations, reinforcing the group's notable position in the field of life insurance.
- Unicredit-Allianz Vita This joint venture marries the financial expertise of Unicredit with the insurance prowess of Allianz. Unicredit-Allianz Vita specializes in life insurance solutions, embracing a philosophy that intertwines financial security with life's unpredictability, delivering peace of mind to its policyholders.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 20/12/2023
Summary and extracts
1 Synthèse du marché
1.1 Introduction
The life insurance market represents a significant sector in the insurance landscape, focusing on long-term financial protection and death risk coverage.
The three types of life insurance are[IGB]:
- life insurance policy;
- term life insurance;
- mixed policy.
Life policies provide an annuity to the insured if he or she survives beyond a certain age, while death policies provide a lump sum to the beneficiaries if the insured dies. Blended life policies combine both coverages, offering an annuity certain at the end of the contract or in the event of the insured's death. [IGB]
Life insurance began to develop in the 16th and 17th centuries in England, France, and Holland. However, it was not until 1750 that it began to settle in America, after more than a century of colonial settlement. Over the centuries, insurance has evolved and adapted to the changing needs of society, becoming an essential tool for the financial protection of individuals and businesses.[Investopedia]
In the ranking of the leading insurance companies in the life sector, we can see that Poste Vita is in first place, with premiums issued of 17,574,113 and a percentage change of 5.48 percent from the previous year. Intesa SP Vita and Generali Italia follow in second and third place, respectively, with premiums written of 8,910,676 and 8,869,440. Among the companies in the rankings, some showed significant growth, such as Mediolanum Vita with an81.88 percent increase in premiums issued, while others recorded a decrease, such as Generali Italia with a negative change of 12.23 percent.[MilanoFinanza]
The size of the global life and non-life insurance market is estimated to be around $8100 billion in 2023 and is set to grow at a CAGR of more than 4 percent during the forecast period. Direct insurance providers are engaged in the primary underwriting and risk-taking of annuities and insurance policies.
The study focuses specifically on the life insurance market in Italy. For information on complementary markets, such as health insurance, please refer to the specific studies available in the businesscoot catalog.
1.2 The global market
the size of the global life and nonlife insurance market is estimated to be around $**** billion in **** and is expected to grow at a CAGR of more than * percent during the forecast period. Direct insurance providers are engaged in the primary underwriting and risk-taking of annuities and insurance policies. The main ...
1.3 The local market
The value of the Italian life insurance market is **.* billion euros in ****. Life premiums are down-**% from the previous year and **.*% are through bank and post office branches , **.*% through agencies , and **% through promoters. **.* percent involve revaluable life policies and **.*% unit-linked policies.
Market composition - life insurance Italy, ****, % Ivass
Within the Life ...
1.4 Impact of Covid-19
The pandemic led to a significant impact on the insurance industry in Italy, especially in life insurance. In **** , Covid-** brought with it significant uncertainties related to income and the spread of the virus, which negatively affected premium income from Branch I life insurance policies, leading to a *.* percent decrease(***) policies grew ...
2 Analyse de la demande
2.1 Demand characteristics
In Italy, there is a decrease in average monthly household spending on life insurance compared to the **** value; this reduction is due to a consumer perception that the product may be of little use compared to their needs. In ****, however, there was a positive industry figure, with a **.* percent growth in ...
2.2 Demand drivers
The succession of changes and crises has increased Italians' perception of risk. Unforeseen events are part of the consumer's mental space, and he necessarily has to deal with them himself. Although the pandemic was indeed a shock now overcome, wars and geopolitical tensions increase the feeling of uncertainty, while the return ...
2.3 Geographical distribution of demand
To visualize the geographic distribution of demand, a map was created with monthly household spending on life and accident insurance. The North presents the highest figure, with *.** €/month, in the center spending is *.** €/month while, in the South, households spend an average of only *.** €/month.
3 Structure du marché
3.1 Market structure and size
The analysis of the size of the insurance market is carried out based on data belonging to the category related to the activities of insurance agents and brokers (***). Specifically, three different magnitudes are considered:
number of active enterprises number of employees legal form of active enterprises
Number of active enterprises
During ...
3.2 Value Chain
3.3 Distribution channels
The passage of product distribution through agents and brokers is a traditional practice in the insurance industry. These brokers play a key role in the insurance market, connecting insurance companies to customers' needs. Insurance agents are often affiliated with a specific insurance company, where they are responsible for selling the company's ...
3.4 Main actors
Overall, the insurance industry landscape has a number of players who play crucial roles. Insurance companies are at the center of this system and offer insurance policies to cover specific risks whether they are related to life, health, tangible assets, or other categories. Insurance intermediaries, such as agents and brokers, facilitate ...
4 Analyse de l'offre
4.1 Type of Offering
Life insurance (***) is a contract entered into between the policyholder and the insurance company that, in return for the payment of a premium, guarantees the beneficiary an annuity or lump sum in the event of the death of the insured or his or her survival at a certain date. Three determining ...
4.2 Prices
The final cost of a life insurance policy varies depending on several factors, such as age of birth, the health condition of the person who decides to take out the policy, technical costs of life insurance (***). So, since it does not have a fixed cost, life insurance varies depending on the ...
4.3 Artificial intelligence and the insurance industry
Artificial Intelligence can be considered a useful tool in the design, development, and use of data and algorithms for maximizing sustainable value creation and reducing risks to individuals and society. The technology can be applied to many different sectors and industries, and well-known insurance companies such as Generali make use of ...
5 Règlementation
5.1 Rules and regulations
Life insurance regulations are a key pillar in the financial legislative landscape, as they regulate the dynamics and obligations for both insurance companies and policyholders. This legislation was designed with the aim of protecting the interests of policyholders by establishing clear criteria regarding insurance contracts. In addition to the basic rules ...
6 Positionnement des acteurs
6.1 Segmentation
Italian enterprises
Foreign enterprises
- Poste Italiane
- Assicurazioni Generali
- Mediolanum
- UnipolSai Assicurazioni
- Allianz Italy
- Axa groupe
- CNP Assurances (La Poste)
List of charts
- Value of the global life insurance market
- Global insurance industry market share
- Market composition - life insurance
- Average monthly household expenditure item in life insurance
- Concerns according to age
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CNP sells its Spanish subsidiary to Medvida of Spain - 20/12/2022
- The Minister of the Economy has authorized the transaction for a total of 128 million euros.
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