Private health sector to boost Spanish insurance market

Written by Michael Griffiths

24/05/2024

Spain’s general insurance industry is set to be worth €56.6bn by 2028, new estimates from GlobalData have indicated, with the private health sector expected to accelerate growth.

The data and analytics company suggested the Spanish general insurance market will grow at a compound annual growth rate (CAGR) of 5.3% over the next five years in terms of gross written premiums (GWP), from its current value of €45.7bn.

GlobalData has forecast the growth will be supported by personal accident and health (PA&H), motor, and property insurance lines, which are estimated to collectively account for 78.4% share of the total general insurance GWP in 2024.

Insurance analyst at GlobalData, Anurag Baliarsingh, said that the general insurance industry in Spain continued its growth trend for the third consecutive year and grew by 7.0% in 2023, its highest growth over the last five years.

“The growth was driven by rising demand for private health insurance, prompted by inadequate public healthcare, a recovery in vehicle sales, and increasing investments in infrastructure,” Baliarsingh commented.

“However, with the Spanish economy expected to grow at a slower pace of 1.4% in 2024 and 1.6% in 2025, the general insurance industry will witness slower growth over the next two years.”

PA&H insurance is the leading line of business in the Spanish general insurance industry and GlobalData expects the sector to account for a 29.8% share of the general insurance GWP in 2024.

According to the Spanish Union of Insurance and Reinsurance Entities (UNESPA), around 2.3 million people opted for private health insurance in 2023. As a result, the percentage of the population going private increased from 19.2% in 2022 to 30% in 2023.

“The general insurance industry in Spain is expected to witness an upward growth trend from 2025 onwards, propelled by economic recovery and increased demand of private health insurance,” Baliarsingh added. “Rising costs due to inflation will prompt insurers to reassess their risk exposure and increase premium prices in the short-term.”

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