Czech insurance companies have experienced a slowdown in growth during the first quarter of 2023, according to data from the Czech Insurance Association. The association reported that the insurance market had grown by 5.5% year-on-year, with premiums totaling CZK 42.9 billion. While the non-life insurance segments of vehicle insurance and retail property and liability insurance have continued to strengthen their growth rates, life insurance and corporate insurance premiums have seen a slowdown.

The association noted that the development of life insurance has contributed to the deceleration, with premiums for corporate insurance also falling. Prescribed premiums for life insurance increased by 2.6% year-on-year to CZK 13 billion. Single premiums decreased by 5.9%, and the number of life insurance policies fell by 1.1% year-on-year to 4.855 million.

The slower growth in non-life insurance was also attributed to the currently lower premiums for corporate insurance, with total premiums amounting to CZK 29.9 billion, representing a year-on-year increase of 6.8%. Vehicle insurance remained the dominant non-life insurance segment, with liability insurance premiums reaching CZK 7.7 billion, an increase of 5.4% year-on-year. The trend was similar for vehicle collision insurance, with premiums gradually increasing.

Retail property and liability insurance continued to experience high nominal growth rates, with prescribed premiums increasing by 13.3% year-on-year to CZK 4.3 billion. However, premiums for corporate insurance increased by only 1.5%, compared to the 16.2% growth in the previous year.

The slowdown in growth in the Czech insurance market has been driven by factors such as inflation and a decline in life insurance policies. Insurance analysts have noted that changing consumer preferences and the broader economic environment will continue to shape the market. While vehicle insurance remains the primary driver of growth, the industry will need to adapt to remain competitive and continue to meet the evolving needs of consumers.

Article by Prague Forum