STATISTICS: CEE, 1H2016: The 8% decrease in GWP of the Polish market pushed down the regional GWP by 3%

27 October 2016 — Daniela GHETU
Apart from the general effort of adapting to the Solvency II requirements, the CEE markets have experienced a rather "peaceful" first half of 2016, apparently with no major events Yet, the economic climate is still volatile and markets remain highly competitive, challenging insurers' profitability.

Overall, GWP in the CEE markets went down by about 3% y-o-t, to a total of EUR 16.13 billion. Paid claims decreased at a comparable pace, to EUR 9.58 billion. Poland accounts for the largest share of the CEE premiums, of 38.2%, down by about 2pp y-o-y mostly beacuse of the negative trend recorded in the life insurance sector. In fact, due to its dimension, the Polish market was the main driver ot the negative change in GWP in the region, the 8% fall in GWP witnessed by the Polish market alone making more than the consolidated negative difference recorded, in absolute terms, by the entire CEE region.

Motor insurance lines remain the leading non-life lines of business in almost all CEE countries, recording a positive evolution in most CEE countries, both on the MTPL and Motor Hull segments.The factor which really made the difference in the markets witnessing the highest growth rates on the MTPL line was the price. Thus, several CEE markets, as Albania, Romania or Hungary, have seen significant increases in the MTPL tariffs.

Property insurance lines, especially the fire insurance segment, saw a hesitant evolution in almost all CEE countries, many of the CEE market wittnessing a negative change in GWP for this. Given the relatively calm year in what the weather related events are concerned, paid claims have also decreased in many countries. Finally, it should be said that the property insurance line is also a price battle field, insurance rates recording during the last years a visible decreasing trend.

In life insurance, the low yield environment is the main challenge for insurers, especially for those managing a relevant portfolio of policies with a guaranteed return. With very few exceptions, generally belonging to the very small markets, most CEE life insurance markets saw a steady or even a negative trend.

Read a comprehensive analysis of the trends recorded in the CEE insurance markets, as well as regional and country statistic data in the latest issue of the XPRIMM Insurance Report CEE, SEE & CIS 1H2016.