Assuralia has released its 2024 annual report, providing an in-depth analysis of market trends and future prospects for the insurance sector in Belgium.
The Belgian insurance market experienced significant growth in 2024, with total premiums reaching 35.1 billion euros, an 8.4% increase compared to the previous year. This growth was mainly driven by the rise in individual life insurance, the impact of inflation, and higher repair costs. Here are some of the key figures and trends that were observed in 2024.
Strong growth in individual life insurance
Guaranteed-rate individual life insurance (Branch 21) grew by 10.8%, reaching 7.1 billion euros, continuing an upward trend seen in recent years. Meanwhile, unit-linked products (Branch 23) surged by 34.5% to 3.8 billion euros, benefiting from favorable stock market conditions.
Decline in group insurance
Unlike individual life insurance, group insurance saw a decline of 2.4%, totaling 6.7 billion euros. This drop is attributed to exceptional payments made in 2023. Nevertheless, supplementary pensions remain a key issue for insurers, who advocate for a stable tax framework to support the growth of the second pension pillar.
Moderate growth in non-life lnsurance
The non-life insurance segment grew by 6.1%, reaching 16.7 billion euros. Adjusted for inflation (3.1%), the real growth rate stands at 2.9%. Fire insurance rose by 5.5%, largely due to the annual increase in the ABEX index, which reflects rising construction costs.
Limited impact of natural disasters
In 2024, damages from storms and floods remained relatively low, amounting to 169 million euros and 108 million euros, respectively. However, climate change remains a major concern for the industry, with increasing risks of future disasters. The government has announced a public-private partnership to improve compensation mechanisms for major natural catastrophes.
Trends in auto insurance
Premiums from motor vehicle insurance increased by 4.8%, reaching 4.5 billion euros. The comprehensive insurance segment saw a 7.6% rise, while third-party liability insurance grew by 2.6%. The update of the indicative table at the end of 2024 led to higher insurer reserves, impacting the profitability of this segment.
Rising costs in work accident and health Insurance
Work accident (+11.1%), health (+6.8%), and general liability (+4.8%) insurance premiums increased, mainly due to inflation and rising costs.
More details on the figures and trends in the various insurance sectors, an interview with the president and vice-president of Assuralia, as well as a discussion with Lode Godderis, can be found in Assuralia’s brand-new annual report.