STATISTICS: CZECH REP., FY2018: 4% market growth driven by the motor insurance lines

Czech insurers ended 2018 with a 4.1% y-o-y increase in GWP, to EUR 5.03 billion. Most of the market growth was owed to the higher growth rates seen on the motor insurance lines, data provided by CAP - the Czech Insurance Association show.

The market results denominated in local currency show a slightly higher market growth rate was, of 4.8%.

Life insurance saw an apparently stagnant evolution, overall increasing at a very low pace in local currency, of less than 0.6%, which calculated in euro, translates into a slightly negative trend (-0.17%). Yet, at a closer look, this outcome represents the sum of two opposite trends. Thus, while the single premiums life insurance segments continued its descending trend, with premiums written for the whole of 2018 reaching 18% lower than in 2017, the other lines have recorded a positive evolution which almost succeeded to offset the lost business volume. However, according to a CAP statement, the number of active insurance contracts is still decreasing (compared to 2017, their number is 89 thousand units lower), amounting at the end of 2019 to 5.29 million units. The decreased is not so much due to a significant change in the number of newly concluded life insurance contracts, but to premature termination of older contracts. It is worth mentioning though that compared with the past years, when Czech life insurers were confronted with a wave of policy surrenders (about 1 million contracts were prematurely closed both in 2011 and 2012), the number of policies lapsed decreased to about half million in 2018. "Compared to 2017, the number of new business deals fell by 1%, while the number of contracts terminated further decreased by 9%," said Jaroslav Urban, insurance analyst within CAP.

Non-life insurance GWP amounted to EUR 3.32 billion, up by 6.4% y-o-y (7.2% in local currency). Motor insurance lines saw the highest growth rates, providing for most of the extra premiums volume. The MTPL GWP increased by 6.8%, exceeding the 3.9% growth seen in the number of contracts. According to CAP, the average loss in this sector is growing at a faster pace (around 7%) than the average premiums (3%).

It is also worth noting that the group of insurance lines newly monitored by CAP - retail property and liability insurance - reached, in 2018, saw a 4.85% increase in premiums (5.7% in local currency) against 2017. On the other hand, Czech insurers had to pay last year a significant volume of claims for water damage, reaching to about EUR 45 million (2.7% up y-o-y). The average amount of one insured event occurring in the context of water damage (caused, for example, by a ruptured tubing at the sink supply, toilet flushing, or damage caused by the heating of neighbors, damage to its own flat, its facilities, etc.) amounts to CZK 25,527 (EUR 992), which, compared to the average amount of such premium the 2017 event in the amount of CZK 23,009 represents an increase of even 10.9%.

CESKA pojistovna, KOOPERATIVA and ALLIANZ have made the market Top 3, controlling together a little more than the half of the market GWP (50.7%).

Access www.xprimm.com and download the FY2018 Czech insurance market statistics.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.

21.03.2019

Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

See all