Market Trends of Denmark Property & Casualty Insurance Industry
Rise in Residential Property Insurance
With a continuous rise in the number of residential buildings in Denmark, the number of insurance policies being taken for residential property is observing a continuous increase. The net worth of households as a percentage of disposable income is observing a continuous increase resulting in the insurance premium written by private property far exceeding the value of commercial property with an increase in the number of insurance providers expanding their business in residential segments. The gross claim payment of non-life insurance is observing a continuous increase in the country, with a rise in insurance policies sold for residential properties to minimize the impact of unidentified risks. As an emerging trend rising climate change with flood risk is having a major impact on residential property leading to the focus of government policies for expansion of the residential property insurance policy in the country.
Digitization of Insurance Industry
Rise in Insurtech and Fintech Market is leading to a continuous increase in growth of digital insurance in Denmark. Transaction value of Neo banking and fintech in denmark is observing a continuous rise over the years. With adoption of Neo Banking, banks and Insurance companies are offering their services online in which monthly premiums can be paid as well as digital claims can be made in case of any damage to property. Use of AI and ML by the insurance businesses is enhancing customer support as well as detecting claims in case of fraud and underwritten price is preventing the insurance industry from issue of information assymetry in the market. Undo, Scale Point, GoBundl, Penni and Insurware have emerged as some of the insurtech countries in Denmark using innovative application of blockchain-based and other insurance technology innovative products. These trends combined with a rising business of digital banks in the region is expected to drive the P&C insurance market in denmark over the coming period.
