Summary

Key Highlights
Life and non-life insurance market in the Czech Republic is estimated to grow at a CAGR of approximately 5% during the forecast period.
Europe holds second place in the global insurance market in 2018, behind Asia-Pacific, while ahead of North America. The Czech Republic’s insurance premium was EUR 5.7 billion in 2018. The insurance industry totaled about CZK 41.8 billion (EUR 1.6 billion) at the end of March 2019, while the industry totaled about CZK 124.45 billion (EUR 4.82 billion) at the end of September 2019, up by 5.86% Y-o-Y. Total GWP increased by 6.2% from 2015 to 2018 with an annual 2.0% growth rate; the market remains relatively limited but is growing market size and scope.
Both main subsectors of the industry increased in business volume Y-o-Y in 2017. In 2018, the life segment’s gross written premium (GWP) dropped by 3.0%, while that of the non-life segment increased by 5.2%. The non-life growth rate was mainly driven by motor insurance products, despite declining premiums of the previous years. The profitability of the industry was slightly growing in the last four years.
In 2018, the life and non-life segments’ GWP accounted for 36.3% and 63.7% of total market GWP, respectively. Insurance penetration has been falling steadily since 2015, mainly due to the declining life insurance segment. In 2018, total penetration was 2.9%, down by 0.2% points from 2017, which is relatively strong in the CEE region, but there is still an opportunity for expansion in the industry. In 2018, GWP per capita was EUR 556, up by 2.2% points from 2017, which is above the CEE average of EUR 387. Paid claims per GWP was 59.5% in 2018, 7% down from 2017.


Key Market Trends

Few Companies Captures Major Market Share in Czech Republic Insurance Industry:

The life insurance market is highly concentrated. Based on gross written premium, the top five companies control 64.9% of the market. The rest of the market is controlled by 18 other insurance companies. Based on the gross written premium in 2018, the non-life segment is almost twice as large as the life segment. The non-life market is also highly concentrated, with the five largest firms accounting for 73.5% of the total gross written premium. Insurance penetration is declining, and it turns out to be an opportunity for companies to expand their business. There are plenty of relatively small insurers in both segments, which means there is still room for consolidation.

Czech Republic’s Insurance Market Is an Emerging Market:

The insurance industry can make significant financial contributions to a national economy. It contributes to the formation of national income by creating value through the provision of indemnity and in its role as an institutional investor. As a country develops and its gross domestic product rises, the demand for insurance increases significantly as the macro-economic focus begins to shift or deviate from its earlier incarnation. As a result of this change, especially in developing countries, there will be a rise in the level of disposable income. As income increases, so does the rate of consumption and the level of wealth. This can have a direct effect on population development, density, and urbanization; this, in turn, has inevitable sociocultural effects and an increased sense of risk aversion.

Competitive Landscape

The report covers the major players operating in the life and non-life insurance market in the Czech Republic. The market is consolidated, with major market share captured by few companies and low insurance penetration. There is an opportunity for other companies to acquire market share.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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