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Weak Growth Weighs on Private Insurance Business in 2013

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  • Thomas Url

    (WIFO)

Abstract

The insurance penetration remained at its low level (5.3 percent) throughout 2013, the consequence of a decline in revenues from life insurance premium payments and below-average growth in the non-life and accident insurance business. With the first contracts falling due and new business moving at a sluggish rate, revenues from payments into state-aided old age insurance continued to fall. Persistently low yields from investment effectively prevented the surplus from investment income to grow inspite of an increase in capital investments. Implementation of the EU's "Solvency-II" Directive was postponed to January 2016, although Austria will put into operation some of the measures covered by the second and third pillars of Solvency II already in 2014.

Suggested Citation

  • Thomas Url, 2014. "Weak Growth Weighs on Private Insurance Business in 2013," WIFO Bulletin, WIFO, vol. 19(14), pages 132-141, November.
    • Handle: RePEc:wfo:wblltn:y:2014:i:14:p:132-141
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    References listed on IDEAS

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    1. Cummins, J. David & Weiss, Mary A. & Xie, Xiaoying & Zi, Hongmin, 2010. "Economies of scope in financial services: A DEA efficiency analysis of the US insurance industry," Journal of Banking & Finance, Elsevier, vol. 34(7), pages 1525-1539, July.
    2. repec:wfo:wquart:y:2013:i:3:p:157-167 is not listed on IDEAS
    3. J. Cummins & Gregory Nini, 2002. "Optimal Capital Utilization by Financial Firms: Evidence from the Property-Liability Insurance Industry," Journal of Financial Services Research, Springer;Western Finance Association, vol. 21(1), pages 15-53, February.
    4. Thomas Url, 2013. "Life Insurance Business Continues to Suffer from Low Interest Rates," Austrian Economic Quarterly, WIFO, vol. 18(3), pages 166-176, November.
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