Unlike other Western European insurance markets, the ratio of non-life insurance to total premiums is relatively high, around 60%, in Austria. This means that the life insurance segment still has considerable growth potential.

Government cutbacks had a negative effect on growth in the life insurance segment of the Austrian insurance market in 2012. Due to a statutory change increasing the minimum lock-in period from ten to 15 years for single premium policies, and a reduction in government premiums for government-sponsored pension plans, premiums declined by 6.9% in the life insurance segment during the 1st-3rd quarter of 2012. In addition, the ongoing low interest rate environment also affected total interest earned, with the guaranteed interest rate being reduced to 1.75% at the end of 2012. Unlike the life insurance segment, property and casualty premiums recorded very good growth of 3.3%. Motor vehicle insurance also contributed to this growth as a result of rising registrations and an increase in the minimum amount insured. Health insurance premiums written also rose by 3.3% in the 1st-3rd quarter of 2012.

The average insurance density in Austria (average per capita premiums) was EUR 1,952 in 2011, of which EUR 1,121 was for non-life insurance and EUR 831 for life insurance.

Market growth in 2012 compared to the previous year

Market shares of the major insurance groups

This information
was audited by PWC
GmbH, Vienna on
March 12, 2013.