CZECH Rep.: Motor insurance prices hinder market dynamic

8 November 2011 — Daniela GHETU
CZECH Rep.: Motor insurance prices hinder market dynamic
Total underwritings of the Czech insurance market amounted, according the Czech Insurance Association, about EUR 4.34 billion, meaning an 1.33% y-o-y growth rate (in European currency). Both life and non-life statistics for 3Q2011 show a lower market dynamic, as compared to the previous quarters of 2011 or with the 2010 results. According to CAP, the main reason of the decreasing figures on non-life insurance is the persistent decline in motor insurance prices.

Data collected by the insurers' association show an y-o-y average fall in motor insurance rates of 7%, most of it related to the MTPL policies. Thus, despite the 2.4% increase in motor insurance concluded contracts, the GWP figure decreased by nearly EUR 77 million. "In the last six years there has been a decrease in the average price of MTPL insurance of about 15%", says Tomas SIKORA, CEO of CAP, adding that "considering the constant increase of the average cost per claim, particularly when it comes about bodily injuries, the situation may become really dangerous for the market stability and even put out the market some insurers".

The most significant positive shift is the 3% growth in corporate insurance business, both in terms of GWP and number of contracts. Developments in this area suggests that entrepreneurs increasingly perceive insurance as a suitable risk management tool.

On the life insurance side, the over 5% increase in GWP is accompanied by a smaller number of contracts. According CAP, it seems the most popular life insurance products remain the single premium policies, which recorded an above average growth rate, of about 9%.

While the market rankings suffered only minor changes as compared to the previous year's picture, the two largest financial groups acting on the Czech insurance market - GENERALI PPF Holding and VIG Group - hold an almost even market share, of about 30% each. GENERALI PPF Holding, with 30.2% market share, pulls together CESKA Pojistovna - the market leader -, GENERALI Pojistovna, CESKA Pojistovna Zdravi. VIG Group (29.9%) reunites KOOPERATIVA Pojistovna VIG, CESKA PODNIKATELSKA Pojistovna, Pojistovna CESKE SPORITELNY.

Access and download the 3Q2011 Czech Republic insurance market statistics.

Market portfolio:
  • Gross written premiums in European and local currency for analyzed periods
  • Paid claims in European and local currency for analyzed periods

Market rankings (GWP/Paid claims/Market shares/Growth rates):
  • Overall market ranking
  • Life insurance ranking
  • Non-life insurance ranking
  • Overall motor insurance ranking (motor hull and mtpl, added-up)
  • Motor hull insurance ranking
  • MTPL insurance ranking

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