The Spanish insurance market in 2016

This report looks at the Spanish Insurance Market in 2016 and the underlying economic environment. It confirms the turning point marked by the nascent pick-up in global economic growth, led by emerging economies, amid the shift from an easy monetary policy to a looser fiscal policy stance. The year featured uncertainties surrounding geopolitics and regional governance in the EU, reaching a crunch point with Brexit in the UK. Spanish GDP grew by 3.2 percent in 2016, extending the positive momentum seen the year before. Improved household and business consumption drove growth in all business lines in the insurance market, with aggregate premium volume up 12.4 percent. Life insurance stood out, supported by negligible or zero returns on bank deposits. The Spanish insurance sector showed gains in profitability and, in general, high solvency levels under the new Solvency II metric.