Life & Non-Life Insurance Market in Czech Republic - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Life & Non-Life Insurance Market in the Czech Republic is segmented by Insurance Type (Life insurance and Non-Life Insurance) by Distribution Channel (Agents, Brokers, Banks & Financial Institutions, Online, and Others)

Market Snapshot

Life & Non-Life Insurance Market
Study Period: 2018-2027
Base Year: 2021
CAGR: <7 %

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Market Overview

The life & non-life insurance market in the Czech Republic is estimated to record a CAGR of approximately 7% during the forecast period.

Total GWP increased by 19.9% from 2016 to 2019 with an annual 6.2% growth rate. The overall market growth will be relatively limited with the non-life segment expected to continue to grow in terms of premium volume, while the life segment faces a weaker demand soon. New insurTech companies could put pressure on the traditional players in the insurance sector. Both main subsectors of the industry had grown in business volume year over year until 2017. The life segment’s GWP dropped by 3.0% in 2018 and by 3.8% in 2019, while that of the non-life segment increased significantly by 5.2% in 2018 and by 15.3% in 2019. Life GWP has been decreasing, which was caused by the market shift from the life savings business to life protection business and reduction in toxic business (primarily by some questionable brokers). Life savings business from the past was partly replaced by other savings products (primarily mutual funds) better suited for the purpose. As a result of these shifts, the overall retention and profitability of the life business have improved. The non-life growth rate was mainly driven by motor insurance products and by property insurance. The popularity of motor insurance products is mostly based on the increase of the Czech car market which registered a record high sales volumes between 2014 and 2017 however started to slightly decrease in 2018 and 2019.

The impact of COVID-19 on life insurance is mixed. The Czech insurance sector faces challenges from a downturn in the economy due to Covid-19 combined with significantly increased tax payments scheduled for 2021 and 2022. In order to improve solvency, Czech National Bank issued a strong recommendation to insurers that they avoid distributing any dividends that might impact their solvency position until the Covid-19 crisis is over, and according to our knowledge, all insurers decided to comply with this recommendation. One of the immediate impacts was in operational areas, where many insurers had to establish tools for online collaboration, both internal and external and provide their sales network tools to continue sales online. This sudden technology change opens the area for further insurtech innovations on the market, which we believe was not yet as well established as other fintech products.

There were 14 life insurers and 24 non-life insurers in the Czech Republic, 13 of which operated in both segments in 2019. The market is dominated by the Generali and Vienna Insurance Groups as both companies operate through multiple entities and control almost about two thirds of the market. Generali and VIG earned 58.9% of life insurance premiums and 58.6% of non-life insurance premiums.

Scope of the Report

Life and Non-Life Insurance is one of the most widely demanded products as people are adopting digitalization. A complete background analysis of the China Life and Non-Life Insurance Market, which includes an assessment of the economy, market overview, market size estimation for key segments, and emerging trends in the market, market dynamics, and key company profiles are covered in the report. Life & Non-Life Insurance Market in the Czech Republic is segmented by Insurance Type (Life insurance and Non-Life Insurance) by Distribution Channel (Agents, Brokers, Banks & Financial Institutions, Online, and Others)

By Line of Insurance
Life Insurance
Individual
Group
Non-Life Insurance
Fire and Property Insurance
Motor Insurance
Motor Liability
Other Motor
Medical Insurance
General Liability Insurance
Rest of Non-Life Insurance
By Distribution Channel
Agents
Brokers
Banks and Financial Institutions
Online
Other Distribution Channels

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Key Market Trends

Few Companies captures major market share in Czech Republic Insurance Industry:

The life insurance market is highly concentrated. Based on GWP, the top three companies control 64.6%, while the top five companies 79.6% of the market. The rest of the market is controlled by 9 other insurance companies. Based on the GWP in 2019, the non-life segment is twice as large as the life segment. The non-life market is also highly concentrated, with the three largest firms accounting for 62.0%, while the five largest for 78.6% of the total GWP. There are plenty of relatively small insurers in both segments, which means there is still room for consolidation.

T1

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-added 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. A result of this sort of change, especially in a developing country, is often a rise in the level of disposable income. As income increases so do 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 socio-cultural effects and an increased sense of risk aversion.

T2

Competitive Landscape

Companies across world have huge investment in this segment of market. In Czech Republic Life and Non-Life Insurance market have many companies fragmented over minor shares. Kooperativa, pojišťovna, Generali Česká pojišťovna, NN Životní pojišťovna N.V, ČSOB Pojišťovna, Allianz pojišťovna, MetLife Europe, Česká podnikatelská pojišťovna, Komerční pojišťovna, UNIQA pojišťovna, AXA životní pojišťovna are amongst the Czech Republic Life and Non-Life Insurance Companies.

Adoption of technological platforms and up-gradation to new Technology leads to increase in revenue of insurance firms. Innovation and technological advancement taking a pace as the COVID-19 and urbanization strike general people to the adoption of Life Insurance and Non- life insurance to mitigate the risk.

Recent Developments

Intermap Expands Insurance Products and Services Across Europe

Based in Prague, Intermap's European Operations Group supplies insurance and reinsurance solutions to major national insurance players in the Czech Republic and Slovakia. In the reinsurance industry, the Company is partnering with reinsurance brokers to deliver modeling of catastrophic flood exposures. Intermap is aggressively expanding its insurance and reinsurance offerings across CEE and Russia. Intermap's solution will provide Generali Serbia with a consistent approach during the whole portfolio life cycle, from underwriting to reinsurance.

UNIQA Insurance: Closing of purchase of AXA subsidiaries in Poland, Czech Republic, and the Slovakian Republic

On 7th February 2020, UNIQA signed a purchase agreement with AXA and its subsidiary Société Beaujon for the acquisition of shares in the AXA subsidiaries in Poland, the Czech Republic, and the Slovak Republic. After obtaining all necessary regulatory approvals the acquisition was legally closed today, 15th October 2020, meaning that the shares in these companies are now owned by UNIQA Österreich Versicherungen AG in return for payment of the agreed purchase price. The integration of the acquired companies into the UNIQA Group will begin immediately.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 PESTLE Analysis

    5. 4.5 Insights on Technological Innovations and Current�Trends in the Market

    6. 4.6 Consumer Behaviour Analysis

    7. 4.7 Porters 5 Forces Analysis

      1. 4.7.1 Threat of New Entrants

      2. 4.7.2 Bargaining Power of Buyers/Consumers

      3. 4.7.3 Bargaining Power of Suppliers

      4. 4.7.4 Threat of Substitute Products

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Impact of Covid-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Line of Insurance

      1. 5.1.1 Life Insurance

        1. 5.1.1.1 Individual

        2. 5.1.1.2 Group

      2. 5.1.2 Non-Life Insurance

        1. 5.1.2.1 Fire and Property Insurance

        2. 5.1.2.2 Motor Insurance

          1. 5.1.2.2.1 Motor Liability

          2. 5.1.2.2.2 Other Motor

        3. 5.1.2.3 Medical Insurance

        4. 5.1.2.4 General Liability Insurance

        5. 5.1.2.5 Rest of Non-Life Insurance

    2. 5.2 By Distribution Channel

      1. 5.2.1 Agents

      2. 5.2.2 Brokers

      3. 5.2.3 Banks and Financial Institutions

      4. 5.2.4 Online

      5. 5.2.5 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 ČESKÁ pojišťovna

      2. 6.2.2 KOOPERATIVA, pojišťovna

      3. 6.2.3 NN Životní pojišťovna N.V.

      4. 6.2.4 ČSOB Pojišťovna

      5. 6.2.5 ALLIANZ pojišťovna

      6. 6.2.6 Generali�?esk�poji�?ovna?

      7. 6.2.7 DIRECT�poji�?ovna?

      8. 6.2.8 SLAVIA�poji�?ovna?

      9. 6.2.9 UNIQA�poji�?ovna?

      10. 6.2.10 BNP Paribas�Cardif�Poji�?ovna?

      11. 6.2.11 MetLife Europe?

      12. 6.2.12 AXA�poji�?ovna?

      13. 6.2.13 Komercn��Pojistovna?*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Life & Non-Life Insurance Market in Czech Republic market is studied from 2018 - 2027.

The Life & Non-Life Insurance Market in Czech Republic is growing at a CAGR of <7% over the next 5 years.

ČESKÁ pojišťovna, KOOPERATIVA, pojišťovna, NN Životní pojišťovna N.V., ČSOB Pojišťovna, ALLIANZ pojišťovna are the major companies operating in Life & Non-Life Insurance Market in Czech Republic.

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