Portugal’s insurance industry thriving

Portugal’s insurance industry is thriving despite challenges according to insiders attending the 2018 Insurance Forum in Lisbon last week.

“There is a level of confidence in the industry which is good when faced with challenges,” Carlos Maia, Insurance Lead Partner at PwC told the daily business newspaper Jornal Económico which organised the conference.

Around 84% of insurers are confident they will increase their business over the next 12 months while 92% were confident of increased business turnover over the next three years.

In 2017, direct insurance turnover stood at €11.6Bn (of which €7.1Bn was down to life insurance and €4.5Bn non-life cover.

The sector’s total premiums were €344 million according to the Portuguese Insurance Association (APS).

“It is an industry which has a decisive role in the Portuguese economy” says the President of the APS, José Galamba de Oliveira.

He said that Portuguese insurers applied €53.1Bn in investment assets in 2017. “In terms of our financial position, it can be seen that profit and loss varies depending on the business, but the message is that own capital continues to grow. It is an industry that makes capital.”

The conference heard criticisms against an excess of regulation, concerns over cyber threats and technological advances which were the main foci for insurance company CEOs in Portugal.

The conference also drew attention to the climate of uncertainty at a global level which affected the national industry with low interest rates, sudden changes in investor behaviour and the growing expectation of inflation as well as a reduction in stimulatory measures from the European Central Bank  which all had a negative impact on the insurance industry.