STATISTICS: Czech Insurance Association: Insurance market growing thanks to MOD insurance

At the end of March 2016, the Czech Republic insurance market totaled CZK 31.12 billion (about EUR 1.15 billion), 1.27% more y-o-y, according to the results of the members of the Czech Insurance Association (CAP). The most dynamic sector in non-life insurance is collision insurance. Collision insurance (n.red.: MOD insurance) strengthened year-on-year by 9.2% and helped to maintain the continuing growth of the entire non-life segment", CAP annoucend in a press release.

The following was released by CAP (Czech Insurance Association)

In non-life insurance, there was a boost in the premiums written within the first quarter of 2016 by 4%. As compared to CZK 19.3 billion for the first quarter of 2015, premiums written for the first quarter of 2016 achieved a level of CZK 20.1 billion and thus strengthened in absolute numbers by CZK 780 million. That is comparable to the growth achieved in non-life insurance for the entire year in 2015.

For motor third-party liability insurance, there was an increase in the premiums written by 1.9%, which corresponds to the tempo for the year 2015.

Collision insurance continues to accelerate its growth from 6.1% to the current 9.2%. "In view of the fact that the number of vehicles insured with accident insurance has increased year-on-year by more than 8%, the growth in premiums written is caused primarily by the fact that motorists have begun to become more aware of the risks and are insuring their vehicles more", explains the executive director of the Czech Insurance Association, Jan MATOUSEK, and goes on to say: "In line with the favorable development of the economy, we can also see positive developments in business risk insurance. It has shown a year-on-year growth of 3.8%, which constitutes an increase in premiums written by nearly CZK 231 million."

Life insurance is slightly decreasing its tempo of decline from 3.5% for the entire year of 2015 to the current decline of 3.4%. The premiums written for all of life insurance in the first quarter reached the amount of CZK 11.006 billion (as compared to CZK 11.394 billion in the first quarter of 2015). Products with premiums paid on a one-time basis are doing significantly worse, with premiums written having fallen by 43%. Prescription for products with regularly paid premiums is declining more slowly as compared to last year (by 1.1%) instead of the decline of 2.1% for the whole of the year 2015.

Year-on-year, the number of active policies in life insurance declined by more than 200 thousand (-3.4%) and the number of policies newly entered into is continuing to decline at a considerable tempo (-35 %). However, for the first time in quite a long time, the number of cancelled policies is also starting to go down. "The fact is that a situation in which 800 thousand policies are terminated and, within the same period of time, 600 thousand are entered into, is not good, considering the existence of 5.7 million active policies, and does not correspond to the healthy development of a product that is structured as long-term," adds Jan Matousek, and concludes: "I believe that in life insurance, a turnaround will gradually occur, whether thanks to the increasing financial literacy of the populace, self-regulation measures taken by insurance companies, or, for example, thanks to the effects of the regulation of commissions that is currently being discussed, which will change the motivations of brokers in a positive way."

Access www.xprimm.com and download the 1Q2016 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

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