General Insurance Article - Ireland’s growing construction sector to aid non-life growth

 Property insurance was the second-largest category - after vehicle insurance - in the non-life segment in 2013, with a gross written premium of EUR1.3 billion. The introduction of public-private partnerships (PPP) to facilitate public infrastructure is expected to act as a stimulus to Ireland’s construction industry and increase opportunities in the property insurance sector.

 “Infrastructure projects will add to the supply of housing and commercial property and this is likely to impact positively upon the premiums of Irish property insurers. Furthermore, the thousands of jobs created by the projects will boost demand for more properties," comments Shabnam Sultana, Insurance Analyst at Timetric.

 Increased non-life combined ratio posing a challenge
 Ireland is exposed to floods and storms from the Atlantic Ocean, causing damage to both life and property every year. The country’s high frequency of natural disasters increased the non-life segment’s combined ratio from 98.9% in 2009 to 100.8% in 2013.

 “In 2012, high payouts due to heavy floods in Dublin drove the combined ratio up to 98.5% in 2012 from 89.8% in 2011. The high frequency of natural disasters is an ongoing challenge for Irish non-life insurers and factors such as climate change could mean a sustained period of higher combined ratios in the near future,” Sultana comments.