STATISTICS: Czech market posted 4% increase in H1 GWP, CNB & CAP figures shows

23 September 2021 —
STATISTICS: Czech market posted 4% increase in H1 GWP, CNB & CAP figures shows
The first half year statistics recently published by the Czech National Bank - CNB show that at the end of June the local insurance industry totaled about CZK 89 billion (~EUR 3.5 billion), up by 4% y-o-y.

The life segment was up by 3% to CZK 27.3 billion, while the value of paid claims and indemnities - including the change in balance of technical provisions, was CZK 20.4 billion. In the case of general insurance segment, the same indicators were as follows: H1 2021 GWP of CZK 61.8 billion (up by more than 4% y-o-y) and payments of CZK 29.6 billion, down by 6.3% y-o-y.

According to the CAP (Czech Insurance Association), the total GWP by the members of professional association during the first half-year reached CZK 74.76 billion (EUR 2.9 billion): "It increased by 4.4% year-on-year, by CZK 3.17 billion. Compared to the 3.8% growth recorded in the same period last year, this is an escalation of the market growth rate. This result affects the development in both main segments, ie in both life and non-life insurance", comments Jaroslav Urban, Analyst at the Czech Insurance Association.

Life GWP by CAP insurers rose by 2.7% year on year to CZK 23.776 billion, ie CZK 614 million more than a year ago, when they strengthened by 2.4%. Despite the mentioned growth rate in premiums, "The number of Life insurance contracts continue to decline. Year-on-year, there are 1.5% fewer of them, which corresponds to a decrease of about 78 thousand. Thus, at the end of the first half of 2021, 4,975,000 active contracts remain", said Jaroslav Urban.

Life insurance portfolio continued to be dominated by regular paid contracts, which account for more than 90% of the total, despite their growth rate has slowed from 3% at the end of the first half of 2020 to the current 2.5%. GWP increased by CZK 564 million and confirms the balanced development of these products in the long run. On the other hand, the volume of one-off premiums increased by 8.9%, but its development is highly volatile and has only a marginal impact on the overall result.

The growth of non-life GWP strengthens slightly year-on-year. In the first half of 2021, CZK 2.557 billion was written more, and total premiums approached CZK 51 billion. This corresponds to a year-on-year increase of 5.3%, which slightly exceeds the 4.6% growth last year.

Motor insurance continues to be dominant, accounting for more than 50% of the total non-life business. MTPL GWP reached over CZK 14.5 billion, which is 5.7% more than in the same period of 2020. However, the growth dynamics decreased by 1.2 pp. The partial decrease in dynamics is also reflected in MoD, which grew by 6.3% and exceeded CZK 12.8 billion, but compared to 6.7% growth in 2020, this is a slight slowdown.

The mentioned development in MTPL is partly supported by the ever-increasing number of insured vehicles, which is currently rising by 2.7%, which slightly exceeds the increase in the number of insured vehicles by 2.5% recorded a year earlier. The situation is different in MoD insurance: Compared to the growth of 6.3% at the end of the first half of 2020, the number of accident-insured vehicles is now rising by only 2.1%.

Access and download the H12021 Czech insurance market statistics.