Low Claims Numbers Laid the Foundation for a Relaxed Situation in Property and Casualty Insurance in 2025

The Austrian private insurance sector saw its premium volume rise by 5.0 percent in 2025. The pace of premium rate increases slowed across all lines of business, meaning that growth in volume became more relevant. Premium growth in property and casualty insurance (+5.0 percent) was in line with the European market average. Private health insurance continued to be a dynamic sector (+8.5 percent). Life insurance (+2.8 percent) performed well in newly generated business with single-premium policies. Following the floods of 2024, the number of claims in small-scale natural perils insurance was particularly low, but high-volume insurance lines (motor third-party liability, legal expenses and household insurance) also contributed to this phenomenon. Overall, claims payments fell by –2.3 percent. The improved investment performance of the insurance sector in 2025 supported the industry's profitability and enabled the build-up of equity.