Market Trends of Life & Non-Life Insurance Industry in Czech Republic
This section covers the major market trends shaping the Czech Republic Life & Non-Life Insurance Market according to our research experts:
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.
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.
