Czech Republic Insurance Market Intelligence: 2011 Edition
The Czech insurance industry has been growing at a notable pace since the early nineties, mainly because of government reforms, increasing income, and household expenditure in non-food categories, demand for investment-linked products, and improved sales channel (bancassurance). Since the accession of the Czech Republic to the European Union (EU) in 2004, the structure of its insurance market has changed significantly. Furthermore, the implementation of new rules and regulations have added to the growth of the Czech insurance industry in foreign or cross-border insurance undertakings desiring to conduct business in the country.
Insurance business in Czech Republic comprises life and non-life insurance. Despite a notable decline in the domestic economy in 2008-09, following the worldwide financial crisis, the insurance sector recorded growth in local currency terms, particularly on account of increased sales of motor vehicle. In addition to this, rise in other sub segments of the non-life insurance business, such as property/ fire/ natural perils insurance, also helped boost the growth of the insurance market. The range of products offered by life insurers includes assurance on death, survival, personal injury & sickness, annuities, marriage & birth insurance as well as investment-linked insurance plans.
The Czech insurance industry market has developed with the changes in policies in health insurance policy for foreigners and regulations of car insurance. Strong rebound in the Czech Republic economy, rising motor sales, and growing healthcare expenditure are anticipated to be few of the key factors to drive its insurance market in the years to come. The insurance premiums are projected to grow in the coming years yet the rate of this growth is likely to remain slow due to limited insurance penetration and frequent occurrence of natural disasters.
Insurance business in Czech Republic comprises life and non-life insurance. Despite a notable decline in the domestic economy in 2008-09, following the worldwide financial crisis, the insurance sector recorded growth in local currency terms, particularly on account of increased sales of motor vehicle. In addition to this, rise in other sub segments of the non-life insurance business, such as property/ fire/ natural perils insurance, also helped boost the growth of the insurance market. The range of products offered by life insurers includes assurance on death, survival, personal injury & sickness, annuities, marriage & birth insurance as well as investment-linked insurance plans.
The Czech insurance industry market has developed with the changes in policies in health insurance policy for foreigners and regulations of car insurance. Strong rebound in the Czech Republic economy, rising motor sales, and growing healthcare expenditure are anticipated to be few of the key factors to drive its insurance market in the years to come. The insurance premiums are projected to grow in the coming years yet the rate of this growth is likely to remain slow due to limited insurance penetration and frequent occurrence of natural disasters.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Implementation of Reforms and Legislations, Rapid Changes in Industry
1.1.2 Formation of New Structure, Increase in Foreign Undertakings
1.1.3 Health Insurance Mandatory
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Rise in overall insurance premiums in 2009 in local currency terms
1.2.1.2 Growth in single premiums in life insurance segment
1.2.2 Market Segments
1.2.2.1 Dominance of non-life segment in insurance industry
1.2.2.2 Life segment registered growth whereas non-life premiums fell in 2009
1.2.2.3 Health Insurance Mandatory
1.2.3 Market Share
1.2.3.1 Ceská pojištovna dominated both life and non-life insurance segments
1.2.3.2 Increasing Number of Foreign Participation, Expected Intensification in Competition
1.2.4 Market Density & Penetration
1.2.4.1 Deterioration in Czech economy resulted in decrease in insurance density
1.2.4.2 Low insurance penetration in life insurance sector compared to non-life
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Health insurance for foreigners
Change in Regulations of Car Insurance
2.2 Market Drivers
Rising Healthcare Expenditure
Growing Sales of Motor Vehicles
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Stability in political situation, low insurance penetration, frequent occurrence of natural disasters driving premiums growth in future
4.2 Rising Income, Automobiles and Property, and Health and Retirement-Savings Product to Drive the Industry
1.1 Industry Structure
1.1.1 Implementation of Reforms and Legislations, Rapid Changes in Industry
1.1.2 Formation of New Structure, Increase in Foreign Undertakings
1.1.3 Health Insurance Mandatory
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Rise in overall insurance premiums in 2009 in local currency terms
1.2.1.2 Growth in single premiums in life insurance segment
1.2.2 Market Segments
1.2.2.1 Dominance of non-life segment in insurance industry
1.2.2.2 Life segment registered growth whereas non-life premiums fell in 2009
1.2.2.3 Health Insurance Mandatory
1.2.3 Market Share
1.2.3.1 Ceská pojištovna dominated both life and non-life insurance segments
1.2.3.2 Increasing Number of Foreign Participation, Expected Intensification in Competition
1.2.4 Market Density & Penetration
1.2.4.1 Deterioration in Czech economy resulted in decrease in insurance density
1.2.4.2 Low insurance penetration in life insurance sector compared to non-life
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Health insurance for foreigners
Change in Regulations of Car Insurance
2.2 Market Drivers
Rising Healthcare Expenditure
Growing Sales of Motor Vehicles
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Stability in political situation, low insurance penetration, frequent occurrence of natural disasters driving premiums growth in future
4.2 Rising Income, Automobiles and Property, and Health and Retirement-Savings Product to Drive the Industry
LIST OF CHARTS:
Annual Premium: Czech Republic Insurance Industry: 2002-2009
Czech Republic Insurance Premium Share (%) by Segment: 2009
Czech Republic Insurance premium by segment: 2002-2009
Czech Republic Life Insurance Premium Share (%) by Segment: 2009
Czech Republic Non-Life Insurance Premium Share (%) by Segment: 2009
Czech Republic: Major Non-Life Insurer’s Market Share: 2009
Czech Republic: Major Life Insurer’s Market Share: 2009
Czech Republic Insurance Density: 2002 – 2009
Czech Republic Insurance Penetration: 2002 – 2009
Czech Republic: Healthcare Expenditure: 2002 – 2009
Czech Republic Registered Motor Vehicles ('000 Units): 2002 – 2009
Forecast: Czech Republic Insurance Industry: 2009A - 2013F
Forecast: Czech Republic Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium: Czech Republic Insurance Industry: 2002-2009
Czech Republic Insurance Premium Share (%) by Segment: 2009
Czech Republic Insurance premium by segment: 2002-2009
Czech Republic Life Insurance Premium Share (%) by Segment: 2009
Czech Republic Non-Life Insurance Premium Share (%) by Segment: 2009
Czech Republic: Major Non-Life Insurer’s Market Share: 2009
Czech Republic: Major Life Insurer’s Market Share: 2009
Czech Republic Insurance Density: 2002 – 2009
Czech Republic Insurance Penetration: 2002 – 2009
Czech Republic: Healthcare Expenditure: 2002 – 2009
Czech Republic Registered Motor Vehicles ('000 Units): 2002 – 2009
Forecast: Czech Republic Insurance Industry: 2009A - 2013F
Forecast: Czech Republic Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Key Macroeconomic Indicators: 2009A – 2014F
Key Macroeconomic Indicators: 2009A – 2014F
