The Central and Eastern Europe (CEE) economies saw in 2017 their best year since the 2009-2010, analysts agree. Even if after a buoyant start, the growth paces have calmed down a little by the end of the year, the annual result exceeded expectations. In fact, several financial institutions have raised their annual GDP forecast for the region as with the passage of quarters the results were confirming the persistence of the economic effervescence in the region.
Depending of the groups of countries considered under the CEE generic name, regional GDP's annual growth in 2017 is estimated to different values between 3.8% and 4.7%, Romania holding the top performer place, with a 6% y-o-y GDP growth.
Insurance business across the region has benefitted from the economic momentum and closed 2017 with an average GWP growth of 11.5%, to EUR 36.2 billion. Most of the total extra EUR 3.7 billion premiums written in excess of the 2016's premium production came, as expected, from the Polish market, which remains the region's unchallenged leader, accounting for 41.4% of the total GWP.
The non-life insurance segment generated extra premiums worth EUR 2.85 billion, almost half of it due to the MTPL insurance line. Life insurance contribution amounted to EUR 888 million.
It is worth noting that 11.5% was also the growth rate of the paid claims. In absolute terms, life and non-life insurance segments contributed almost equally to the claims expenses growth. Although after a such eventful year in weather extreme events, as it was 2017, one would expect to see a significant increase in the property insurance claims, the largest contribution to the extra claims expenses of the CEE insurers came from the motor lines, namely the MTPL insurance one. Given the low penetration of the housing insurance in most CEE countries, the stormy 2017 didn't result in a significant increase of the claims on the fire insurance line.
The overall markets' results show a positive evolution in all countries in GWP terms. Four markets - Poland and the three Baltic states -, have reported double digit growth rates which for Poland and Latvia took values around 20%.
Due to the high dynamic recorded last year, Poland managed to increase its regional market share by about 2 pp, to 41.4%, returning thus close to the peak point of its weight in the regional market. The other Top 5 markets maintained an almost unchanged share of the regional market, while Romania, ranking 6th, has lost about 0.5 pp.
Read an in-depth analysis of the CEE insurance market's evolution in 2017 in the latest issue of XPRIMM Insurance Report CEE, SEE & CIS - FY 2017, to be launched on 14 May. Request a copy!
Access www.xprimm.com and download the FY2017 CEE | SEE | CIS insurance market statistics.
CEE Statistics per Countries:
- Overall Market Data
- Life Insurance Aggregate Figures | Life Unit-Linked | Top 50 regional market ranking
- Non-Life Insurance Aggregate Figures | Top 50 regional market ranking
- Motor Insurance Market Figures: MTPL & MoD
- Property Insurance Market Figures
- GTPL Insurance Market Figures
CIS Aggregate Figures per Countries (click here).