Portuguese general insurance industry to be worth €7.6bn by 2026

Written by Michael Griffiths

20/12/2022

Portugal’s general insurance industry is set to grow to €7.6bn ($9.3bn) by 2026, GlobalData has estimated.

In terms of gross written premiums (GWP), the Portuguese insurance industry is estimated to grow at a compound annual growth rate (CAGR) of 5.9%, rising from €5.7bn ($6.8bn) in 2021.

According to GlobalData’s Insurance Database, Portugal’s industry is projected to grow by 7.9% in 2022 and 4.6% in 2023. The data and analytics company said this will be driven by a strong uptake of personal accident and health insurance (PA&H), which compared to other types of insurance, is expected to register the highest growth of 12.2% in 2022.

PA&H insurance is Portugal’s largest general insurance line, accounting for a 37% share of GWP in 2022. The PA&H insurance segment is forecasted to register a CAGR of 6.7% between 2021 and 2026, supported by the country’s ageing population.

The Portuguese government also introduced a new law in January 2022, which enables people who overcame serious illnesses to receive insurance coverage without any discrimination or increase in premiums. GlobalData suggested this will also support growth in health insurance coverage.

Insurance analyst at GlobalData, Sutirtha Dutta, commented: “The growth in Portugal’s general insurance segment will be driven by an increased demand for private health insurance and a rise in occupational accidents. Additionally, health insurance premiums are expected to grow by more than 10% in 2023 due to inflationary pressure leading to higher claim amounts.”

Dutta added: “Portugal’s general insurance industry will maintain strong growth over the next couple of years. However, inflation, which is currently at an all-time high, will impact profitability.”

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