Expense insurance ratios in Europe 2020, by country

In 2020, the life insurance market in the United Kingdom was more profitable than the non-life insurance market based on the expense ratio. The expense ratio, which is the sum of expenses divided by premiums earned is a measure of profitability used to compare insurance markets. It can be displayed as a measure of one or as a percentage of 100. A ratio of under one means that companies are earning more premiums than they are paying out in expenses.

Expense ratios in the UK

In 2019, the United Kingdom (UK), which is Europe's largest insurance market in terms of gross written premiums, saw expense ratios of 0.38 for non-life insurance and 0.06 for life insurance. This indicates that the life insurance sector is much more profitable than the non-life insurance sector.

Combined ratios

Combined ratios measure the sum of claims and expenses incurred divided by premiums earned. The UK had the highest combined ratio in Europe for both life and non-life insurance. Similarly to expense ratios, a ratio of over one means that companies are paying out more in claims than they are receiving through premiums earned. This is the case with the life insurance sector in many European countries such as the Netherlands, the UK, Poland, and Austria.