Czech Republic

Entry into the euro area is scheduled for 2016. The relatively sound financial sector did not much feel the effects of the recession. The production sector in the Czech economy, among the most developed in the Eastern Europe, generates approximately 40% of the GDP. One of the most important production sectors, which is mainly privately owned, is the car industry. Promising branches include the textile industry and tourism in the service sector.

In 2010 Czech GDP increased by 2.3% (the first positive change since the third quarter of 2008), and in 2011 GDP growth rate was 2.0% (estimate). The GDP growth forecast for 2012 is 1.8%.

The priority agenda of the government remained unchanged in fiscal and monetary policies, structural reforms and the improvement of labour market flexibility. The unemployment rate in 2011 was 6.7%. In 2011, the inflation rate was 1.8% and anticipated to increase to 2.2% in 2012.

2011 Main Macroeconomic Indicators

Population

10.5 million

2011 Growth of GDP (estimate)

2.0%

2011 GDP (estimate)

USD 220.3 billion

2011 GDP per capita (estimate)

USD 20,925

2011 Inflation rate (retail prices)(estimate)

1.8%

Source: IMF, World Economic Outlook, September 2011

Insurance market

Insurance activities were carried out by 31 companies, which charged CZK 116.4 billion in written premium, representing a 0.3% fall compared to the previous year. In this well developed and strongly competitive market considerable growth was recorded in life insurance (index 101.9), while the non-life segment was lower than in 2010 (index 98.4). The share of non-life insurance products in total premium continued to fall and reached 61.1% in 2011, compared to 61.9% in 2010.

Triglav pojišt'ovna gained a 0.9% market share in non-life insurance, which is the same as in 2010. In terms of gross written premium, the best performing insurers were Česka pojišt'ovna (26.9% market share), Kooperativa pojišt'ovna (19.6% market share) and Allianz pojišt'ovna (8.1% market share).

Premium structure in the Czech insurance market

 

Shares in the Czech non-life insurance market

 
 
 
 
 
 
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