The following report was released by the Czech Insurance Association - CAP.
Life insurance growth resulted solely from single premium contracts. Premiums written in this area rose by more than 22% whereas current premium payment contracts went down from positive numbers in the preceding periods by 0.6%.
"A 13% decline in current premium payment contracts in life insurance and further decreases in the volume of life insurance contracts are alarming. In view of a growing sale of single premium contracts and the predominant aim of clients to grow their financial resources, we can say that the significance of life insurance as a long-term risk protection tool and systematic accumulation of financial resources for the future is still being underestimated," commented on the results Tomas SIKORA, CEO of the Czech Insurance Association.
1.7% overall growth in non-life insurance reflected a moderate rise in sole trader insurance by 1.5%. Gradually increased premium rates in new motor third-party liability insurance contracts (+2.7%) had the biggest impact.
"A more positive situation in motor third-party liability insurance is, however, still far from being optimal," noted Tomas SIKORA and added: "Motor third-party liability insurance contracts are renewed and taken out throughout the year and that is why price corrections have so far affected a smaller proportion only. As a result, we can expect a raise in premium rates in motor third-party liability insurance in the following period. Current growth results do not yet cover increases connected with payments into the Damage Fund of the Czech Insurers' Bureau and they certainly do not cover higher demands associated with damage to health according to the new Civil Code."
Compared to motor third-party liability, collision insurance saw a decline by 0.3% and no systematic developments were recorded despite the fact that negative technical results caused by the close relation between premium rates and vehicle prices are still valid.
"Although the insurance market experienced a mild recovery from stagnation in early 2014, I don't expect any significant increases in the growth dynamics with the exception of motor third-party liability insurance. I think that more prominent market developments can be anticipated no sooner than in 2015," forecasts CEO of the Czech Insurance Association Tomas SIKORA.
Access www.xprimm.com and download the 1Q2014 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