It has been another challenging year for the insurance industry. There were a phenomenal 14 215 regulatory announcements in the global financial sector in 2011, according to Thomson Reuters. Europe’s economies continued to battle recession and financial instability. And last year was also by far the most expensive natural disaster year ever. Economic losses of $380bn (€287bn) dwarfed the previous record of $220bn set in 2005, and insured losses also reached a new high of $105bn, according to Munich Re.

In the face of such challenges, it is impressive that Europe’s insurers have remained stable and secure, meeting their obligations
to claimants and long-term investors. The European industry succeeded in recording a 2% increase in its total assets under
management in 2011 — taking them to €7 680bn. It saw only a marginal decline of 1.5% to €1 090bn in its total gross written
premiums, largely attributed to consumer uncertainty in the light of the financial instability.

The value of the insurance industry lies precisely in this secure and stabilising role in the economy.