Changing Conditions for Private Insurance Companies

The private insurance industry has recovered from a period of weak growth in premium income in the early eighties. This is mainly due to a rapid expansion of the life insurance business. Since 1986 the private insurance sector has been faced with major legal changes: An amendment to the Insurance Supervisory Law which introduced strict solvability criteria for insurance companies, a new regulation of motor car liability insurance, the introduction of product liability similar to EC rules, and a tax reform reducing incentives for saving.