The gross premiums written by European insurers in 2013 totaled €1.119 trillion ($1.470 trillion), a 2.7% increase over the previous year, according to statistics published Monday by Insurance Europe, but impacts loom from upcoming Solvency II rules.
Property/casualty insurers in Europe paid out a total €325 billion ($426.82 billion) in claims, said Brussels-based Insurance Europe, the federation for insurers and reinsurers in Europe, a 4.4% increase compared with 2012.
At the end of 2013, insurers in Europe had more than €8.5 trillion ($11.163 trillion) in assets under management, according to Insurance Europe’s “Key Facts” booklet, a 3.2% increase compared with 2012.
However, Insurance Europe said it is concerned that despite revisions to the original draft rules, the upcoming Solvency II risk-based capital rules for insurers and reinsurers in Europe will require companies to hold “inappropriately high amounts of capital against their long-term investments.”
“This will make it more expensive for insurers to invest in long-term government and corporate bonds, as well as growth-stimulating activities, such as infrastructure projects,” said Michaela Koller, director general of Insurance Europe, in a statement.
“This could discourage insurers from making these vital investments, which would have a significantly negative effect on the European economy at a time when boosting growth is an overall policy objective,” she added.
The Key Facts booklet is available here.
Figures released by Insurance Europe show that Europe's insurance sector contined growing at a moderate clip in the decade ended 2012, Xprimm reported.