STATISTICS: CZECH Rep., FY2014: Despite the positive trend in motor insurance, market doesn't take off yet

Hopes for a strong recovery of the insurance market were not confirmed as the full year figures of the CAP - the Czech Insurers Association show only a very small growth in terms of GWP (1.05%), to CZK 115.19 billion. In European currency, given the significant depreciation of the Czech koruna, the total GWP amounted to EUR 4.15 billion, a value close to the one from 2013.

The non-life insurance segment recorded a quasi stable evolution during the year, slightly accelerating in the last quarter. All in all, GWP for non-life insurance increased by 2.27% in national currency, to CZK 69.07 billion. Most of the segment's positive evolution came from the motor insurance lines, especially from the MTPL class which recorded a 4.6% growth in premiums.

The MTPL insurance line saw a 4.6% growth in GWP, to CZK 20.08 billion (EUR 724.4 million), exceeding for the first time after 2011 the CZK 20 billion threshold. Progressively increased premium rates in new and renewed contracts, as well as a strong increase of the car sales market were the main drivers of the MTPL premium volume growth. In fact, full year 2014 car sales hit a historical record, with over 192 thousand units sold, 16.7% up y-o-y and 18,000 units more than the previous record figure reported for 2012. As far as the MTPL tariffs are concerned, the relative hardening trend of the market is considered still insufficient for covering the about CZK 3 billion increase of the market's liabilities generated by the New Civil Code and the higher payments to the Loss Prevention Fund and Fire Brigade, as estimated by CAP representatives.

On the life insurance side, GWP decreased y-o-y by 0.7% in local currency, to CZK 46.12 billion, loosing in absolute terms about CZK 300 million in volume, a downward trend which equally affected both single premium and products with regular payment. New business production in life insurance fell by 7.6% and total insurance portfolio decreased y-o-y by 200,000 contracts (-3.3%), as stated by CAP.

The final results of 2014 on the life insurance segment seem somehow unexpected after the positive trend recorded in the first quarters of the year. However, as shown by the CAP's statements after the first three quarters, a large part of the premium's increase came from the cross-border business via branches or under FOS. Excluding this segment, life insurance premium underwritten by the Czech insurers increased only by 0.3%.

Access www.xprimm.com and download the FY2014 Czech Republic insurance market statistics.

Market rankings in EUR and CZK (GWP/Market shares/Growth rates) according to the Czech Insurance Association (CAP):
  • Overall market ranking
  • Life insurance ranking
  • Non-life insurance ranking
  • MTPL insurance ranking
  • Motor hull insurance ranking

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

Conclusions: TBILISI - the first Georgian International Insurance Conference

Today takes place in Tbilisi the first Georgian International Insurance Conference, an event that will 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 is 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

Motor insurance - becoming more financially efficient and consumer friendly

Under the strong pressure put by the technological evolution, the motor insurance business is rapidly changing, both in operational terms and, most visible, in the way insurers are interacting with their customers. Step by step, the insurers' relationship with customers evolves from simply indemnifying insureds for the losses suffered because of road incidents, to helping them prevent incidents and rapidly recover after the accidents that couldn't be avoided.

27.02.2019

See all