Research and Markets (http://www.researchandmarkets.com/research/2dc1ff/czech_republic_ins)
has announced the addition of the "Czech Republic Insurance Report Q2
2008" report to their offering.
The Czech Republic Insurance Report provides independent forecasts and
competitive intelligence on Czech Republics insurance industry.
As was the case in Q108, the main focus of this report is BMI’s
proprietary Insurance Business Environment Rating (IBER). The rating
brings together a number of pieces of relevant quantitative data,
together with BMI’s Country Risk Rating (CRR).
The IBER makes it easier for the business environment for the insurance
sector in a particular country to be compared with the business
environment for any other industry in that country that is surveyed by
BMI. The IBER also allows an objective and meaningful comparison of the
business environment for the insurance sector in one country with the
business environment for insurance in another country. Over the coming
months, we will substantially change the format of the BMI insurance
reports. In essence, we will focus to a much greater extent on the
companies that are active in the non-life and life segments.
The Czech Republic’s IBER is 61.5. The Czech
Republic is, relative to other countries in Central and Eastern Europe
(CEE), a moderately-sized market for foreign insurers, although still
relatively small by world standards. It stands out within the region for
the measure of openness of the non-life and life segments and the
overall economic outlook is also very positive. However, the relative
underdevelopment of the sector and the low levels of expected growth and
foreign penetration of both the life and non-life sectors, the levels of
taxation, bureaucracy and external risks have all held the IBER is held
back.
The Czech Republic’s excellent regulatory
framework, development and competitive landscape along with the strength
of the general economy, expected to grow at 6% in 2007, constitute the
strengths of the sector. Though the sector is crowded, the low
penetration rates and relative diversity of the market in relation to
other countries in the region may provide opportunities for growth in
the future.
Indeed, the Czech Republic’s insurance market
is amazingly crowded - in this respect it is very similar to that of
Slovakia. According to the Insurance Information Institute (III), by far
the largest player in the Czech Republic, both the life and non-life
segment in terms of premiums written, is Ceska Poistovna, which had
almost a third of all premiums written in 2004. However, despite being
the largest player, it is not over-dominant and certainly no longer has
the monopoly that it once enjoyed. With a small market and numerous
players, there is a likelihood of rationalisation in the future. An
economic slowdown or volatility in regional financial markets may
provide the catalyst for a substantial rationalisation of the sector
over the medium term.
The main weakness of the Czech Republic’s
insurance sector, on the other hand, is the relatively low total size of
the sector and the low expected growth and penetration rates. The sector
is also still dealing with issues related to taxation, bureaucracy and
possible GDP volatility. There are also possible risks from a reduction
in capital inflows following the US sub-prime crisis and possible
inflationary pressures.
We anticipate that non-life premiums will grow by 11% annually in local
currency terms and by 13% in US$ terms over the forecast period. Life
premiums are expected to increase by 4% annually in local currency terms
and by 5% in US$ terms. An anticipated rise in nominal GDP from around
US$158.30bn to US$237.7bn and an expected increase in non-life
penetration from 2.35% of GDP to 2.80% are expected to be the key
drivers of growth in the non-life segment in 2007-2012. An envisaged
rise in life density from US$208.42 per capita in 2007 to US$280.00 per
capita in 2012 is, on the other hand, expected to be the key driver of
growth in the life segment. However, the total population of the Czech
Republic is declining very moderately.
Key Topics Covered:
The Sector At A Glance
Table: Overview Of Czech Republic’s Insurance
Sector
Key Insights On The Czech Republic’s Insurance
Sector
SWOT Analysis
Czech Republic Industry SWOT
Future Development Of BMI’s Insurance Reports
Latest News
Projections And Forecasts
Table: Premiums - Historical Data And Forecasts, 2005-2012
Projections And Drivers Of Growth
Table: Growth Drivers
Country Update
Macroeconomic Outlook
Table: Czech Republic - Economic Activity
Country Outlook
Table: Czech Republic - Insurance Business Environment Indicators
Table: Central And Eastern Europe Insurance Business Environment Rankings
Regional Context
Table: Non-Life Premiums In A Regional Context, 2007
Table: Life Premiums In A Regional Context, 2007
Table: Comparison Of Major Lines As % Of Non-Life Premiums, 2006
Analysis Of Competitive Conditions
Czech Republic - Non-Life Segment
Table: Presence Of Cross-Border Insurers, Non-Life, Central And Eastern
Europe
Czech Republic - Life Segment
Table: Presence Of Cross-Border Insurers, Life, Central And Eastern
Europe
Methodology
Basis Of Projections
Insurance Business Environment Rating
Table: Insurance Business Environment Indicators And Rationale
Table: Weighting Of Indicators
For more information visit http://www.researchandmarkets.com/research/2dc1ff/czech_republic_ins
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