STATISTICS: CZECH REP., FY2018: 4% market growth driven by the motor insurance lines

Czech insurers ended 2018 with a 4.1% y-o-y increase in GWP, to EUR 5.03 billion. Most of the market growth was owed to the higher growth rates seen on the motor insurance lines, data provided by CAP - the Czech Insurance Association show.

The market results denominated in local currency show a slightly higher market growth rate was, of 4.8%.

Life insurance saw an apparently stagnant evolution, overall increasing at a very low pace in local currency, of less than 0.6%, which calculated in euro, translates into a slightly negative trend (-0.17%). Yet, at a closer look, this outcome represents the sum of two opposite trends. Thus, while the single premiums life insurance segments continued its descending trend, with premiums written for the whole of 2018 reaching 18% lower than in 2017, the other lines have recorded a positive evolution which almost succeeded to offset the lost business volume. However, according to a CAP statement, the number of active insurance contracts is still decreasing (compared to 2017, their number is 89 thousand units lower), amounting at the end of 2019 to 5.29 million units. The decreased is not so much due to a significant change in the number of newly concluded life insurance contracts, but to premature termination of older contracts. It is worth mentioning though that compared with the past years, when Czech life insurers were confronted with a wave of policy surrenders (about 1 million contracts were prematurely closed both in 2011 and 2012), the number of policies lapsed decreased to about half million in 2018. "Compared to 2017, the number of new business deals fell by 1%, while the number of contracts terminated further decreased by 9%," said Jaroslav Urban, insurance analyst within CAP.

Non-life insurance GWP amounted to EUR 3.32 billion, up by 6.4% y-o-y (7.2% in local currency). Motor insurance lines saw the highest growth rates, providing for most of the extra premiums volume. The MTPL GWP increased by 6.8%, exceeding the 3.9% growth seen in the number of contracts. According to CAP, the average loss in this sector is growing at a faster pace (around 7%) than the average premiums (3%).

It is also worth noting that the group of insurance lines newly monitored by CAP - retail property and liability insurance - reached, in 2018, saw a 4.85% increase in premiums (5.7% in local currency) against 2017. On the other hand, Czech insurers had to pay last year a significant volume of claims for water damage, reaching to about EUR 45 million (2.7% up y-o-y). The average amount of one insured event occurring in the context of water damage (caused, for example, by a ruptured tubing at the sink supply, toilet flushing, or damage caused by the heating of neighbors, damage to its own flat, its facilities, etc.) amounts to CZK 25,527 (EUR 992), which, compared to the average amount of such premium the 2017 event in the amount of CZK 23,009 represents an increase of even 10.9%.

CESKA pojistovna, KOOPERATIVA and ALLIANZ have made the market Top 3, controlling together a little more than the half of the market GWP (50.7%).

Access and download the FY2018 Czech insurance market statistics.

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

Share |

Related articles


GENERALI Group results for year 2018

In 2018, GENERALI Group operating result reached EUR 4,857 million (+3.0%), with a net profit of EUR 2,309 mil. (+9.4%). The total gross written premiums (GWP) of the Group amounted EUR 66,691 mil. (+4.9%).


MetLife announced leadership changes as part of CEO transition

MetLife announced a series of changes to its senior leadership ranks in connection with its CEO transition, all of which are effective May 1, 2019. In January 2019, the BoD announced that Michel KHALAF, President, U.S. Business and EMEA, will become MetLife's President, CEO and Member of the Board effective May 1, replacing Steven KANDARIAN, who is retiring.


HANNOVER RE launches an insurtech innovation platform

Germany-based Hannover Re launched a platform designed to bring the insurance companies and insurtech innovators closer. Through the "hr | equarium" platform, Hannover Re wants to facilitate the connection between supply and the demand for insurtech solutions, taking advantage of its worldwide spread.



Conclusions: TBILISI - the first Georgian International Insurance Conference

Today takes place in Tbilisi the first Georgian International Insurance Conference, an event that will put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system is the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.


Motor insurance - becoming more financially efficient and consumer friendly

Under the strong pressure put by the technological evolution, the motor insurance business is rapidly changing, both in operational terms and, most visible, in the way insurers are interacting with their customers. Step by step, the insurers' relationship with customers evolves from simply indemnifying insureds for the losses suffered because of road incidents, to helping them prevent incidents and rapidly recover after the accidents that couldn't be avoided.


See all