STATISTICS: CZECH REP., 3Q2016: Motor policies maintained the market on the upward trend

According to data released by the Czech Insurance Association (CAP), in 3Q 2016 the insurance market has been driven by non-life insurance segment which reported a y-o-y growth rate of 4.2%, while life policies continues to decrease by about 2.1%. Overall, the aggregate GWP increased slightly by CZK 1.61 billion (to CZK 89.57 billion or EUR 3.32.billion), which corresponds to a y-o-y growth rate of 1.8%.

The following statement was released by CAP (Czech Insurance Association).

For the first three quarters of 2016, non-life insurance increased to CZK 57 billion (compared to CZK 54.7 billion for the period from the first to the third quarter of 2015), hence enlarging overall by more than CZK 2.3 billion. In relative terms, growth is therefore 4.2%, which represents only a very small change compared to growth of 4.5% in the first half of the year. The growth in third-party insurance was 2.9%. Compared to an enlargement of 2.5% in the first half of this year, this represents a slight acceleration, due in particular to the growing number of insured cars.

With growth at 9.4% for the third quarter, the situation in the automobile collision insurance (motor hull) segment continued its upward trend of 9.6% from the first half of the year. "It is good news that drivers are more interested in covering the risk of damage to their car. The number of cars covered by automobile collision insurance has grown by 9.1% year-on-year, which significantly influences the total growth of the premiums written in this sector," explains the CEO of CAP, Jan MATOUSEK, who continues: "We also see a continuing recovery in the segment targeting entrepreneurs. Thanks to the positive economic developments, entrepreneurs are more interested in insurance coverage, which is confirmed by a growth rate of 4.3% in the number of insurance policies, and is the result of a 2.1% year-on-year enlargement in premiums written."

The premiums written in the life insurance segment have decreased slightly to CZK 32.6 billion, compared to the CZK 33.3 billion recorded for the period from the first to the third quarter of 2015. The current year-on-year decrease of 2.1% is thus comparable to the decrease of 2.2% in life insurance for the first half of 2016, and it is not continuing to deepen. The weakening of the life insurance segment is more considerable for products with a lump sum premium, where the premiums written dropped by 30%. The current decrease for products with periodically paid premiums is only 0.8%.

The number of newly concluded policies of periodically paid life insurance keeps decreasing. However, on the positive side, the number of terminated policies has been gradually decreasing. Whereas nearly 1 million policies were terminated in previous years, the number is now 730 thousand policies. "We wish the number of terminated policies would continue decreasing in the future in accordance with the indicated trend and that life insurance, which is in principle based on a long-term relationship between a client and an insurance company, would bring people long-term insurance coverage, protecting them against unfavourable situations and, at the same time, serving as an efficient old age security tool," concludes Jan MATOUSEK.

Access www.xprimm.com and download the 3Q2016 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
  • Motor hull

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

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