Life and non-life insurance companies, OECD-countries, 2001

Reduced capital and surplus

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The economic environment of the insurance industry in 2001 was characterized by reduced capital and surplus as well as adjustments to loss reserves. The latter were attributed to high losses and a significant reduction in investment income to cover underwriting results.

In addition to substantial losses after the collapse of the World Trade Center, natural catastrophes, together with a downturn in stock market value, negatively impacted underwriting results.

Total insurance gross premiums reached USD 2 465 billion in 2001 for the 30 OECD countries, down 1.8 per cent from 2000. All OECD countries account for approximately 93 per cent of the world insurance market.

Insurance premiums deriving from life business are slightly larger than those from non-life business, with the average life insurance share of the market standing at 52.3 per cent. In Norway insurance premiums from life insurance business amounted to 48.7 per cent of total life and non-life insurance premiums, while premiums from non-life insurance business amounted to 51.3 per cent of the total.

Life insurance gross premiums reached USD 1 290.2 billion in 2001 for OECD countries. This market is shared among the three biggest insurance markets: the United States, the EU, and Japan, representing respectively 37.1 per cent, 35.2 per cent and 17.7 per cent of the total.

Non-life insurance gross premiums amounted to USD 1 176.3 billion in 2001 for OECD countries. In non-life insurance business, the United States is far ahead with a 58.8 per cent market share, followed by the EU with 25.4 per cent and Japan with 7.3 per cent.

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