Combined insurance ratios in Europe 2023, by country

In 2023, insurance companies in Germany paid out more in non-life insurance claims than they earned through premiums. In that year, the combined ratio of German insurance companies was 1.01. The combined ratio, which is the sum of claims and expenses incurred divided by premiums earned, is a measure of profitability used by insurance companies to see how efficiently they are running their business. The combined ratio can be displayed as a measure of one or as a percentage of 100. Insurance markets with a ratio of more than one means that companies are paying out more in claims than they are receiving through premiums earned.

Combined ratios

France, which is Europe's largest insurance market in terms of gross written premiums, had a combined ratio of above one in life insurance and below one in non-life insurance. Italy, the third-largest insurance market in Europe, also had a combined ratio below one in non-life insurance. 

SCR Ratio and MCR Ratio

In 2023, the German insurance industry had the highest solvency capital requirement (SCR) ratio in Europe. The Netherlands had an SCR ratio half of that of the German insurance sector. In addition to the SCR ratio, insurers must also calculate minimum capital requirement (MCR). The MRC is essentially a tipping point in which, if an insurer falls below, the authorization of an insurer could be withdrawn. Germany had one of the highest MCR ratios in Europe.