Market Trends of Life & Non-Life Insurance Industry
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 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.
