� Business Monitor International Ltd Page - products, including pension schemes. Overall, we expect gross life premiums to increase to USD--.-bn (EUR--.-bn) ...A number of factors support growth in the life sector. Spain has the third highest average life expectancy overall in the EU due to the country s excellent healthcare system, which contributes to a low death rate from heart disease as well as a low number of cases for cancers such as prostate and breast cancer. The relatively healthy workforce will mean that consumers will be purchasing life insurance products as well as retirement plans for longer, and the relatively young population in Spain is a positive factor for insurance companies. We also note that while affordability of life insurance was affected in recent years by declines in average household income levels, we do expect to see a recovery in household income rates over the course of the forecast period. By ----, over half of households will fall into the two highest income brackets (USD--,--- to USD--,--- and USD--,--- plus), suggesting that more households will have disposable income to spend on life products and invest in longer-term savings and retirement products.
...Spain s life insurance sector is showing signs of recovery after having been severely impacted by the country s economic crisis and subsequent collapse in consumer demand and spending. Currency movements mean we will see a contraction in US dollar terms in ---- to USD--.-bn, while in local currency terms premiums are forecast to grow slightly to reach EUR--.-bn. Growth in life insurance underwriting will remain tentative over the remainder of our --------- forecast period, as Spanish consumers continue to face significant headwinds, including high levels of unemployment and ongoing job insecurity. That said, growth will be supported to some extent by low penetration levels, which will encourage multinational insurance companies to focus on expanding underwriting activity among Spanish customers, as opposed to those of more saturated markets such as France and Italy. The introduction of the government s Ahorro - plan from ----, which entitles Spaniards to a tax-free savings account, similar to the UK s ISA scheme, will provide a further boost to the country s life sector. ...The introduction of the government s Ahorro - plan from ----, which entitles Spaniards to a tax-free savings account, similar to the UK s ISA scheme, will provide a further boost to the country s life sector. The programme can be combined with other savings policies, which should act as a long-term driver for life insurance as well as other savings and investment
...In the short term, high levels of household debt are weighing on investment and savings activity, and there is also only limited confidence in long-term savings products. As a result, many of the large domestic life insurers are focusing expansion efforts on overseas markets, particularly in Asia Pacific and Latin American markets. ...
