STATISTICS: CEE, FY2016: 1.62% y-o-y regional growth supported mainly by the motor insurance lines
Yet, one should note that the figure is affected by the currency effects which in some cases have altered visibly the market results when denominated in European currency. According to XPRIMM estimations, the nominal regional average dynamic, excluding the currency effects, may be at its best, is in line with the average economical growth rate, meaning that the regional insurance penetration didn't improve.
Among the most relevant markets in the region, in GWP terms, Romania and Hungary recorded the highest growth rates, in both cases mostly driven by the increasing tariffs for the MTPL insurance. At the other end of the list, Poland continued to record a significant decrease in the life insurance GWP which couldn't be offset by the positive dynamic in the non-life segment, leading to an overall negative change in GWP.
Overall, 2016 brought some interesting changes in the regional market GWP portfolio: life insurance lost about 4.5pp of its weight while on the non-life side, property insurance's share decrease by about 3pp; on the other hand, motor insurance lines gained extra weight: the Motor Hull line's weight went up by 1.5pp and the MTPL line saw its portfolio share increasing by almost 4pp. It is worth noting that the portfolio share held by the here nominated "other lines" also went up by about 6pp, indicating an attempt of diversification. Among the "other" lines of business not presented here in detail, empirical evidence shows that the travel insurance one seems to have gained an increased importance in several markets.
The life insurance segment saw in many of the regional big markets a poor dynamic, challenged mostly by the persistence of the low yield environment.
The non-life insurance segment saw, with only one exception, a positive trend across the region, remaining almost everywhere under the motor insurance lines reign. Not by chance, the best growth rates were recorded in the markets where the motor insurance lines, especially the MTPL one, performed very well, as Poland, Hungary or Romania.
Read more about the trends in the CEE insurance industry and get the most relevant statistical data on the full year's 2016 results in the lastest issue of the XPRIMM Insurance Report - CEE, SEE & CIS - FY2016. Order your copy here.