Life & Non-Life Insurance Market Size

Czech Republic Life & Non-Life Insurance Market Analysis

• 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.