Czech insurance market ended 1Q 2012 with a GWP y-o-y decrease of about 6.7%, to CZK 39.74 billion (EUR 1.6 billion).  Paid claims also decreased by 1.2%, to CZK 21.9 billion (EUR 885.5 million). According to CAP, the Czech association of insurers, the main sources of the declining GWP volume were the decline of the life insurance lines, mainly the single premium line, and the persistent drop in insurance premiums for motor classes.

Life insurance recorded an over 11% in premiums, to CZK 17.31 billion (~ EUR 700 million). According CAP data, single premium life insurance, which has long held the insurance market on the ascending path, fell by more than 30%. The growing momentum is evident in products paid in several installments, where premiums written rose by almost CZK 500 million and also increased the volume of new contracts for almost 20%. Pure risk products seem to become also more popular. However, despite the 23% annual increase in the number of new contracts, the life insurance penetration remains low, even slightly decreasing. The 16% growth of the paid indemnities for unit-linked products shows, in fact, a high rate of policy surrenders. According to a CAP survey carried out in February 2012, 42% of the life insurance policies owners are closing their contract prematurely, 28% of them doing this because of the need to purchase new household items.

On the non-life insurance side, the decline in GWP was of almost 3% y-o-y, to CZK 22.43 billion (EUR 906.8 million). Motor insurance, accounting for about 40% of the non-life portfolio, registered a 6.13% negative change, to CZK 9.25 billion (EUR 374 million). Long-term low car insurance rates caused the loss of CZK 440 million in insurance premiums for MTPL, even though the number of contracts rose by more than 100 000 pieces, said CAP. The association's statistics show that over the last six years prices for motor insurance fell by 23%.
Property insurance remained in positive territory, with an overall 3% y-o-y growth, to CZK 6.04 billion (EUR 244 million). Still, according to the CAP survey, "every second household, and every third house are without insurance protection in the Czech Republic".

Access www.xprimm.com and download the 1Q2012 Czech Republic insurance market statistics.

Market portfolio (in EUR and CZK) according to the Czech National Bank (CNB) and Czech Insurance Association (CAP):
•    Gross written premiums
•    Paid claims
•    Growth rates

Market rankings in EUR and CZK (GWP/Paid claims/Market shares/Growth rates) according to the Czech Insurance Association (CAP):
•    Overall market ranking
•    Life insurance ranking
•    Non-life insurance ranking