Czech Republic Insurance Report Q1 2015
We have long held the view that the Czech insurance sector has been greatly strengthened by the identities of the major players, which are almost all subsidiaries of major multi-national groups. These companies compete through brand, multi-channel distribution strategies, product innovation and price. Traditionally, price competition has limited the growth of premiums, with the result that penetration and density - across both segments - are low relatively to income levels.
As of late 2014, the latest data from the trade association confirms that premiums have been growing slowly in both major segments. In the life segment, volumes have been falling slowly, although increases in premiums per policy have ensured that, in CZK terms, premiums have risen very slightly. In the non-life segment, insurers have been able to increase prices for compulsory motorists' third party liability (CMTPL) covers. However the additional premiums have not been sufficient to cover additional payments of health insurance damages and contributions to the Loss Prevention Fund that are required by law.
Overall, though, underwriting remains disciplined and most of the insurers are keeping a tight control over costs. VIG's businesses in the Czech Republic, for instance, had a combined operating ratio of below 90% over 9Q2014. The impact of tax changes on sales of life insurance products from the beginning of 2015 onwards is an upside risk to our forecast.
The Czech Republic Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
- Non-life insurers have looked to combat insurance fraud through H214.
- On September 23 2014, insurers identified four new initiatives that they will undertake to boost transparency and clarity in the description of products.
- In October 2014, Kooperativa introduced a new product which covers bicycles, skis and other sporting equipment.
BMI's Czech Republic Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Czech insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Czech Republic to test other views - a key input for successful budgeting and strategic business planning in Czech Republic's insurance market.
- Target business opportunities and risks in Czech Republic through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.
Business Environment Rankings
BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.
BMI Industry Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.
Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).
Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).
Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).
Competitive Landscape & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
In spite of its many strengths and a number of essentially positive developments through H214, the Czech insurance sector remain s on a trajectory of low growth.
BMI Industry View
Total Premiums Forecast
Table: Total Gross Premiums Written (Czech Republic 2011-2018)
Table: Total Net Premiums Written (Czech Republic 2011-2018)
Table: Total Insurance Claims (Czech Republic 2006-2013)
Assets and Liabilities
Table: Total Insurance Assets (Czech Republic 2006-2013)
Table: Total Insurance Liabilities (Czech Republic 2006-2013)
Life Premiums Forecast
Table: Gross Life Premiums Written (Czech Republic 2011-2018)
Table: Net Life Premiums Written (Czech Republic 2011-2018)
Health Insurance Drivers
Table: Insurance Key Drivers, Private Health Expenditure (Czech Republic 2011-2018)
Table: Insurance Key Drivers, Disease Adjusted Life Years (Czech Republic 2011-2018)
Table: Life Insurance Claims (Czech Republic 2006-2013)
Non-Life Premiums Forecast
Table: Gross Non-Life Premiums Written (Czech Republic 2011-2018)
Table: Net Non-Life Premiums Written (Czech Republic 2011-2018)
Non-Life Reinsurance Premiums
Table: Reinsurance Non-Life Premiums Written (Czech Republic 2011-2018)
Table: Non-Life Insurance Claims (Czech Republic 2006-2013)
Non-Life Sub-Sector Forecast
Table: Non-Life % Breakdown (Czech Republic 2011-2018)
Motor Vehicle Insurance
Table: Motor Vehicle Insurance (Czech Republic 2011-2018)
Table: Insurance Key Drivers, Autos (Czech Republic 2011-2018)
Table: Property Insurance (Czech Republic 2011-2018)
Health and Personal Accident Insurance
Table: Health Insurance (Czech Republic 2011-2018)
Table: Personal Accident Insurance (Czech Republic 2011-2018)
Industry Risk Reward Ratings
Central and Eastern European Risk/Reward Ratings
Table: Central And Eastern Europe Risk/Reward Ratings
Life Market Overview
Table: Life Insurance Market (USDmn) 2006-2012
Table: Life Insurance Market (%) 2006-2012
Non-Life Market Overview
Table: Non-Life Insurance Market (USDmn) 2006-2012
Table: Non-Life Insurance Market (%) 2006-2012
Vienna Insurance Group (VIG)
Table: The Czech Republic's Population By Age Group, 1990-2020 ('000)
Table: The Czech Republic's Population By Age Group, 1990-2020 (% of total)
Table: The Czech Republic's Key Population Ratios, 1990-2020
Table: The Czech Republic's Rural And Urban Population, 1990-2020
Industry Forecast Methodology
Risk/Reward Rating Methodology
Table: Weighting of Indicators
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