Foreign-controlled life insurance companies in Germany have seen fluctuations over the past decade with a general downward trend. In 2013, the market stood at 17 units, experiencing a decline to 14 units by 2017 and further to 10.79 units in 2020. There were slight recoveries in the subsequent years, reaching 12 units in 2023. However, the forecast for the upcoming years indicates a continued decline, with projected figures falling to 10.16 units by 2028. The compound annual growth rate (CAGR) for the past five years (2018-2023) stood at -1.59%, and the forecasted CAGR for the next five years is -2.4%.
Future trends to watch for include advancements in fintech that could attract foreign investment back to the market, regulatory changes within the EU, and any socio-economic shifts impacting customer preferences towards foreign insurers versus local ones. Keeping an eye on global economic conditions and demographic changes in Germany will also be crucial for forecasting more accurately.
