share of 16.2% in 2015, in terms of gross written premium. The strong
social security and healthcare system affects private health insurance;
private healthcare expenditure as a percentage of GDP rose marginally,
mainly due to the high quality of private healthcare. The decreasing
population will affect the demand for health insurance over the forecast
period. The penetration rate of the personal accident and health insurance
segment stood at 0.8% of GDP in 2015. The number of deaths due to road
accidents in Spain fell by -70.6% between 1995 and 2015.
Although the insurance sector is growing in Spain, the personal accident
and health insurance segment is not doing that well. This segment
constitutes a meagre small fraction of the total premiums of the complete
insurance industry. Because of NHS, a strong government backed
insurance service, the private health insurance sector extremely
competitive and players frequently engage themselves in price wars. Still,
the profit margins are witnessed and hence this segment is estimated to
expand.
The employers, for the safety of their employees take most of the accident
insurance. Now because of the economic crisis, a decrease in the premium
of accident insurance category had been noticed. Nevertheless, after 2010,
some growth has been seen in this segment. Although the growth is not
very significant, but the situation is expected to improve in coming years
as, the economy is again moving towards a stable growth rate. However,
health insurance segment has not seen this downward trend. Health
insurance segment is growing constantly for past few years. One of the
major reasons for this is the significant increase in the ageing population of
Spain. With the increase in average age of population, more and more are
opting for easily accessible and lucrative private health insurance. Initially,
because of its highly competitive nature, only a few large players were
there in the market. Now, as the government has reduced its spending, a lot
more players have come into the market. ASISA Somos Medicos, Adeslas
Segur Caixa, DKV Seguros are few of the players in the market.
It can be easily observed that although private insurance players see a
tough competition from NHS or the free government insurance, still the