Reinsurance Sector in Czech Republic to 2016 Discussed by Timetric
18 Apr 2012 • by Natalie Aster
The Czech reinsurance segment recorded a strong growth during the review period (2007–2011), despite the adverse impact of the global economic crisis in 2008 and 2009. The Czech reinsurance segment grew in premium value at a compound annual growth rate (CAGR) of 9.1% during the review period. This increase was primarily due to significant growth recorded by the Czech Republic’s life insurance and personal accident and health insurance segments. The Czech Republic suffered from the impact of a flood in 2002, which resulted in insured losses of around US$1.3 billion. Out of the US$1.3 million insurance losses, more than 95% were covered by the reinsurance segment.
According to the report “Reinsurance in the Czech Republic, Key Trends and Opportunities to 2016” by Timetric, the market size of the Czech reinsurance segment is expected to increase in written premiums at a CAGR of 9.8% over the forecast period (2012–2016). The growth of the Czech reinsurance segment will be primarily due to the high number of natural disasters, such as windstorms, hailing and flooding, that occur in the Czech Republic. The growth of the segment will also been supported by the increasing value anticipated for the country’s life, non-life, and personal accident and health insurance segments.
Reinsurance in the Czech Republic, Key Trends and Opportunities to 2016
Published: March, 2012
Price: US$ 1.950,00
Natural disasters have significantly impacted the Czech Republic during the review period, causing large-scale loss of life and property damage in the country. As a result, the Czech population is expected to demand property insurance and life insurance, and will put pressure on life and non-life insurance companies to improve and develop their insurance schemes while reducing their prices. With the Czech government playing an active role in increasing the awareness and coverage of insurance schemes, it is expected that more people impacted by natural disasters will purchase property and life insurance over the forecast period. To protect their risks from natural disasters, life and non-life insurance companies are expected to utilize reinsurance services, which will increase the revenues of Czech reinsurance companies.
The treaty reinsurance category accounted for 100% of Czech Republic reinsurance segment in 2011, due to abolition of facultative reinsurance by the 2009 Insurance Act. The value of treaty reinsurance is expected to increase at a CAGR of 9.8% over the forecast period. This will be due to the expected increase in the number of policies sold in the Czech insurance industry over the forecast period.
Prior to 2008, the Czech reinsurance segment comprised the reinsurance businesses of large insurance companies such as Ceska Pojistovna, Kooperativa and Allianz pojistovna, and there was an absence of any special reinsurance company. However, after gaining the approval of Czech Nation Bank in 2008, VIG Re Zajistovna AS of Vienna Insurance Group (VIG) started business operations as a special reinsurance company in the Czech Republic. Before 2008, major insurance companies generated the entire reinsurance revenues in the Czech Republic. Following its acceptance, VIG Re Zajistovna AS became the only company that solely operated reinsurance services in the Czech Republic.
More information can be found in the report “Reinsurance in the Czech Republic, Key Trends and Opportunities to 2016” by Timetric.
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