Markets and business climate

According to the figures available from the German Insurance Association (GDV) at the time when this Annual Report went to press, the German insurance industry booked only minimal premium growth of 0.8% in 2007 – a figure significantly lower than in the previous year which is even likely to fall short of the pace of general economic growth and the inflation rate in Germany.

Development of premium income in the individual
insurance lines in Germany

While the premium booked in life insurance had increased by 4.2% in 2006, the pace of growth slipped back to 0.6% in this major insurance sector in 2007. Viewed from this perspective, however, it should be borne in mind that the previous year’s growth had been favorably influenced by the third step increase on the incentive scale for Riester policies. Had it not been for this effect, the growth level in life insurance in 2006 would have been similarly low to that seen in 2007.

In German property and casualty insurance the premium income booked by the individual lines moved in varying directions: while premiums in motor and industrial property insurance declined again as in the previous year, the premium volume in private customer lines (except motor), in particular, was further boosted. Along with the growth lines of property/casualty insurance, only private health insurance remains as a significant driver of growth in the German insurance industry.