Future of Non-Life Insurance in Czech Republic Reviewed by Timetric19 Apr 2012 • by Natalie Aster
Supported by the Czech Republic’s moderate economic growth, macroeconomic stabilization and the increasing penetration of non-life insurance products, the value of the country’s non-life insurance segment recorded a modest compound annual growth rate (CAGR) of 1.4% during the review period (2007–2011). Over the forecast period (2012–2016), growth is expected to be driven by the development of large-scale energy and infrastructure projects that will require innovative and customized non-life insurance products.
The value of the non-life insurance segment is expected to record a CAGR of 2.3% over the forecast period. This growth is expected to be supported by an increase in the GDP growth rate of the Czech Republic, which is projected to result in a rise in income levels, an increased need for non-life insurance across all categories, an overall growth in the country’s working population and heightened awareness of non-life insurance.
According to the report “Non-Life Insurance in the Czech Republic, Key Trends and Opportunities to 2016” by Timetric, in 2011, the property insurance category accounted for 33.5% of the total Czech Republic non-life insurance segment premiums, while the motor insurance category accounted for 48.7%, the general third-party liability category accounted for 16.2%, and the marine, aviation and transit category had a considerably lower market share of 1.6%. The share of the property insurance category is expected to increase to 35.3% by 2016, with this growth expected to be supported by an increased number of large-scale energy and infrastructure construction projects.
Non-Life Insurance in the Czech Republic, Key Trends and Opportunities to 2016
Published: March, 2012
Price: US$ 1.950,00
Natural disasters, such as the extreme flooding the country suffered in 2009 and 2010, had a significant impact on the Czech Republic during the review period, causing large-scale loss of life and property damage. This is expected to encourage the country’s life and non-life insurers to improve and develop their insurance schemes, making them more effective and reducing their cost. With the Czech government playing an active role in increasing the coverage of insurance schemes, it is expected that, as more people are impacted by natural disasters, an increased number of non-life insurance schemes will be purchased over the forecast period.
The Czech non-life insurance segment is highly concentrated, with the five leading companies accounting for 77.8% of the segment’s gross written premium in 2010. The segment consists of both domestic and foreign companies and is highly competitive. Strong growth opportunities are anticipated over the forecast period, as the country’s favorable macroeconomic environment and moderate GDP growth are expected to lead to a rise in income levels and increased demand for vehicles and motor insurance. As a result, the country’s leading insurers are planning to expand their product portfolios and increase their presence across the country through various distribution channels, most notably increasing their use of online and telemarketing distribution in order to reduce their operational costs.
More information can be found in the report “Non-Life Insurance in the Czech Republic, Key Trends and Opportunities to 2016” by Timetric.
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