Insurers in great danger, according to EY
Growth estimates published by Swiss insurers are upbeat despite the bleak picture of their future perspectives drawn up by consulting firm EY. The latter has estimated that 45% of Swiss insurers are doomed to extinction by 2030, or even 70% if a set of unfavorable factors comes together.
EY argues that growth opportunities remain limited and that shrinking premium volumes should be expected. The strong franc, declining purchasing power of households, estimated at 0.1% by 2018, population decrease, and the more binding political and regulatory environment under Solvency II will be unfavorable to insurers. Moreover, competition coming from insurance companies using new technologies will be fierce. A large number of insurers is poised to disappear unless they decide to merge or enter partnerships.
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