Sunday, 20 April 2014

Czech insurance market falls by 0.1% to CZK 115.5bn in 2012

30 January 2013

Prague, Jan 29 (CTK) - The Czech insurance market continued stagnating last year as domestic insurance companies collected premiums worth Kc115.5bn, down by 0.1 percent year-on-year, Czech Insurers' Association (CAP) told CTK yesterday.

CAP associates insurers that control 98 percent of the insurance market.

While life insurance grew by 1.9 percent to Kc47.4bn, non-life insurance dropped by 1.4 percent to Kc68.1bn.

Unlike previous years, clients are growingly interested in life insurance products as tools of protection from risks. Despite this positive development, the number if the insured continues falling. Compared with 2011, the number of insurance contracts fell by nearly 100,000.

In non-life insurance, the falling trend continued, with certain differences in individual segments. In motor vehicle insurance, the decrease in collected premiums slowed down to minus 3.7 percent from minus 7 percent in 2011.

"This development has been expected. Insurance rates have already reached the bottom of economic rentability of the product and, logically, started to grow," CAP executive director Tomas Sikora said.

Unlike previous years, the trend in business insurance changed unfavourably. Though at the beginning of 2012 it showed a growth of more than 3 percent, in the course of the year it slowed down and at the year's end it stood at 1.1 percent.

The biggest insurers on the domestic market are financial groups Generali PPF Holding (comprising Ceska pojistovna, Generali, CP Zdravi) with a share of 33.1 percent, and VIG (Kooperativa, Ceska podnikatelska pojistovna, Pojistovna Ceske sporitelny) with 29.1 percent.

In terms of collected premiums, the biggest annual growth was last year registered by CSOB Pojistovna (by almost Kc0.5bn), Pojistovna CS and Allianz.

Largest insurers on Czech market

billed premiums 2012 (in Kc bn) billed premiums 2011 (in Kc bn) market share 2012 (in pct)
Ceska pojistovna 29.9 31.3 25.9
Kooperativa 22 22.8 19.1
Allianz 9.6 9.4 8.3
Generali 7.9 8.4 6.8
CSOB Pojistovna 7.8 7.4 6.8
Pojistovna CS 5.9 6.1 5.1
Ceska podnikatelska pojistovna 5.8 5.8 5
UNIQA 5.3 5.2 4.6
ING 5 5.1 4.3

Source: CAP

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