Portugal Insurance

Portuguese insurance industry is well developed and very resilient , but significant market problems still exist in the market. Legislation has a significant effect on the Portugal insurance market. It is one of the most well-structured and competitive in the European Union.

The Instituto de Seguros de Portugal(ISP) is the Portuguese insurance market regulator .It is the body that sets the framework guidelines and governance of the industry. ISP is very much proactive to regulation implementation and support the insurance market for local players. They have already implemented QIS showing the strong capital requirements position. The insurance products have compulsory rates and policy terms and conditions that are approved by the ISP before entering into the market.

Because of the implementation of new Environment Law , now it is obligatory for the high environment risk companies to take environment liability insurance to cover the cost of environmental damages. Portugal has a lot of environmental risks in the form of forest fire, flood and drought. This makes it the necessary to have environment insurance.

Life insurance is takes the major market share in Portuguese market. Life insurance segment works as a major contributory factor in the insurance premium collection. Due to economic crisis and European debt crisis , the life insurance market showed a decline in growth . In the non-life insurance market vehicle insurance and personal accident insurance covers major market share.

There are 2 types of motorcycle insurance in Portugal:
Third Party Liability Insurance � It is mandatory in Portugal.
Fully Comprehensive Plan
These Insurance policies provide coverage for not only the vehicle but also for personal damage. Proof of vehicle insurance must be carried at all times. There are also various types of vehicle insurance available from private companies. The insurance premium depends on the type of car, its power, the driver’s age and driving experience.

Domestic insurance companies are nationalized in 1975 and in 1983 the private insurance companies are allowed to operate in the industry. There are 87 insurers out of which 40 are foreign players , so it a highly competitive market. The top players still have a major market share. Insurance companies are well structured and have authority in the market. The top market players in terms of market share are Fidelity-Global, Bonanca and AXA Insurance.

Insurance companies need to properly plan and check their terms and conditions as well as check the underwriting process. The insurance market is highly competitive due to the presence of large number of players that can affect the profit margin.

Banks work as a major distribution channel in the insurance sector. There are also brokers, agents and direct sales options in the market.Banks mainly sell the life insurance products while aggents mainly sell the non-life insurance products

Insurance penetration is relatively high in the Portugal market compared to European Union Standards.
Population increase along with the increase in life expectancy is the major driving force of growth of insurance in the market. Health care insurance has a lot of potential to grow in this market. It already covers more than a million people .
The Economic recession has a strong impact on the insurance industry as a whole and the unemployment rate caused the industry to a bit slow down. Workman’s compensation insurance is compulsory in Portugal.

Major life insurance companies in Portugal are :
Ocidntal Vida Insurance
Tranquilidade Vida Insurance
BPI Vida Insurance
Totta Seguros Insurance
Acoreana Insurance
AXA Vida Insurance
Real Vida Insurance

Portugal Non-Life Insurance Companies are :
Imperio Bonanca Insurance
Axa Portugal Seguros Insurance
Allianz Portugal Insurance
Zurich Insurance
Ocidental Seguros Insurance
Caixa Seguros
Grupo BES


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Last Updated on : 26th August 2013

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