The following statement was released by the Czech Insurance Association (CAP):
Premiums written in life insurance saw an annual fall of nearly CZK 1.6 billlion. The most significant decline can be found in single premium contracts (-26.7%). There is no reason for optimism (-2.1%) particularly in current premium payment contracts covering the clients' daily life risks. Unfortunately, the role of life insurance as a long-term tool protecting from risks and facilitating accumulation of financial resources for old age tends to be seriously underestimated. A drop of almost 250 thousand in the number of life insurance contracts last year only accords with this trend. "The developments in life insurance last year were affected by changes in legislation regarding the conditions of tax deductibility. Over-insurance and related communication certainly have a negative impact as well. Last but not least, low interest rates affect the developments in all areas of the financial market and they are certain to affect life insurance this year," explains CEO of CAP Jan MATOUSEK.
In contrast, non-life insurance reported more positive results, with premiums written increasing by CZK 2.7 billion from CZK 68.9 billion in 2014 to current CZK 71.6 billion.
Premiums in motor third-party liability insurance went up by 1.9%. Greater premium volume is mainly connected with a growing number of vehicles. On the whole, motor third-party liability insurance continues to record a loss. "The prices in motor third-party liability insurance are more or less stagnating. Competition among insurance companies is shifting from pricing policy to the range of provided services and is particularly reflected in a more detailed consideration of risks and an individual approach to each client," continues Jan MATOUSEK.
Late 2015 also brought accelerated growth rate in collision insurance, which strengthened from 5.3% to current 6.1%. The developments in motor insurance can be linked to economic recovery and incipient dynamics of new and more expensive vehicle purchases.
Business risk insurance contributed to the growth in non-life insurance as well. Despite the dynamics slowing down mildly, premiums written rose by 3.6% to a total of nearly CZK 19 billion. The number of contracts concluded by sole traders increased by almost 20 thousand compared to last year. "Greater demand for business risk insurance is directly related to the state of the Czech economy. With regard to its improving condition, we anticipate favourable developments in sole trader insurance also in 2016," concludes CEO of CAP Jan MATOUSEK.
Access www.xprimm.com and download the FY2015 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