|
The offshore life market continued to expand in the period to 2006 (the latest for which full statistics are available) but as this market is very dependent upon the world economy there is uncertainty as to how deeply the recent world economic situation will have affected it.
Cross border life insurance within Europe, sold through the European Union (EU) Freedom of Service Directive, is a major percentage of the offshore life premiums sold by Ireland and Luxembourg whilst the Isle of Man, not being in the EU, concentrates on the whole world.
To put the size of the offshore life market in perspective, the total world market for individual premiums in 2006 is estimated to be in excess of USD 51bn and only four European countries (UK, France, Germany and Italy) had domestic life markets with premium income larger than this.
The Isle of Man had until 2001 been the historical recognised leader in the offshore life market. The rapid expansion of the cross-border market, especially in Ireland, resulted in Ireland becoming the leading world premium income market in 2002 with Luxembourg also overtaking the Isle of Man to become number two in the world in 2003. By 2005 premium income in Ireland had become 29.4% higher than in the Isle of Man. The staggering growth of offshore life premium in the Isle of Man in 2005 saw the island regain the world number two position from Luxembourg but it was still well below Ireland.
In 2006 premium growth was again higher in the Isle of Man than in Ireland and Luxembourg but the Isle of Man premium in 2006 was still only 85% of the Irish foreign premium.
Axco’s Insurance Market Report on Offshore is in production following our consultant’s visit to the market. It will be published in the third quarter 2008.
|
