Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017

Transcription

1 Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Market Intelligence Report Reference code: IS0372MR Published: September Timetric John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0) Fax: +44 (0)

2 EXECUTIVE SUMMARY 1 Executive Summary The Czech Republic has the second-largest Central and Eastern European life insurance segment after Poland in terms of gross written premium. During the review period, the Czech life insurance segment grew from CZK50.9 billion (US$3.0 billion) in 2008 to CZK63.7 billion (US$3.3 billion) in 2012, at a CAGR of 5.8%. The country s GDP declined marginally by 0.9% during the review period, resulting in an increase in the proportion of life insurance written premium to GDP from 1.32% in 2008 to 1.65% in Over the forecast period, the Czech insurance industry is expected to grow with the help of product innovations by insurers; single-premium products are expected to lead the industry s growth. Czech life insurance segment promise s healthy growth over the forecast period The value of the life insurance segment is expected to increase from CZK6 3.7 billion (US$3.3 billion) in 2012 to CZK81.6 billion (US$4.2 billion) in 2017, at a review-period CAGR of 5.1%. The number of life insurance policies sold is expected to increase from 7.0 million in 2012 to 7.7 million in 2017, at a forecast-period CAGR of 1.9%. This growth will be mainly driven by a recovery in the economy, rising income levels and a steady development of rural areas. A growing working population, rising life expectancy, better penetration of distribution channels selling insurance products, and the availability of a wider range of insurance products will also drive growth. Increase in demand for unit-linked products to support growth The life segment has gradually evolved from risk-protection to investment-related products. Unit-linked insurance products have steadily grown in popularity, and sales of these were the key growth driver for the segment during the review period. These products attract customers through their combination of life insurance cover and an investment element that offers higher returns than normal deposit rates. This has given unit-linked insurance products a dominant position in the segment. In 2012, the unit -linked premium income for life insurers accounted for 61.1% of the total life premium income. Continued consumer interest in unit-linked insurance products is expected to drive the life segment over the forecast period. Expected rise in per capita annual disposable income to support life insurance During the review period, the Czech economy registered negative growth, although at a very low CAGR of -0.4%. The major factor was the global financial crisis of 2009, which led to a 4.7% annual decline in GDP at constant prices. It also led to a fall in annual disposable incomes in the country. However, the IMF expects GDP at constant prices in the Czech Republic to grow at a CAGR of 2.8%, leading to an increase in consumer income and an expansion of the country s middle -class population. The Czech Republic s per capita annual disposable income (PCADI) is also expected to increase in line with GDP, from CZK340,607 (US$17,439) in 2012 to CZK360,963 (US$18,481) in Growth will be supported by the Czech economy s expected recovery, leading to increased employment and industrialization, and growth in the life insurance segment. Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 2

3 TABLE OF CONTENTS 1 Executive Summary Introduction What is this Report About? Definitions Methodology Czech Insurance Industry Attractiveness Insurance Industry Size, Key Industry Trends and Drivers Business drivers Consumer drivers Life Insurance Outlook Life Insurance Growth Prospects by Category Individual life insurance Individual general annuity insurance Individual marriage and birth insurance Individual unit-linked insurance Individual term life Insurance Individual other insurance Life Insurance Growth Prospects by Product Type Individual single-premium policies Individual non-single-premium policies Analysis by Distribution Channel Direct Marketing Bancassurance Agencies E-commerce Brokers Other Channels Regulatory Policies Porter s Five Forces Analysis Czech Life Insurance Bargaining Power of Supplier: Medium to High Bargaining Power of Buyer: Low to Medium Barriers to Entry: Medium Intensity of Rivalry: High Threat of Substitutes: Low Reinsurance Growth Dynamics and Challenges Reinsurance Segment Size, Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 3

4 8.2 Reinsurance Segment Size by Type of Insurance, Competitive Landscape and Strategic Insights Overview Leading Companies in the Czech Republic Life Insurance Segment Comparison of the Top Four Insurers Net earned premium Paid claims Incurred loss Total assets Česká Pojišt ovna a.s. Company Overview Česká Pojišt ovna a.s. key facts Česká Pojišt ovna a.s key financials Kooperativa Pojišt ovna, a.s. Company Overview Kooperativa Pojišt ovna, a.s. key facts Kooperativa Pojišt ovna, a.s. key financials Pojišt ovna České Spořitelny, a.s. Company Overview Pojišt ovna České Spořitelny, a.s. key facts Pojišt ovna České Spořitelny, a.s. key financials ING Pojišt ovna Company Overview ING Pojišt ovna key facts ING Pojišt ovna key financials ČSOB Pojišt ovna, a.s. Company Overview ČSOB Pojišt ovna, a.s. key facts ČSOB Pojišt ovna, a.s, key financials Generali Pojišt ovna a.s. Company Overview Generali Pojišt ovna a.s. key facts Generali Pojišt ovna a.s. key financials Axa Životní Pojišt ovna Company Overview Axa Životní Pojišt ovna key facts Axa Životní Pojišt ovna key financials Allianz Pojišt ovna, a.s. Company Overview Allianz Pojišt ovna, a.s. key facts Allianz Pojišt ovna, a.s. key financials Metlife Amcico a.s. Company Overview Metlife Amcico a.s. key facts Metlife Amcico a.s. key financials Komerční Pojišt ovna a.s. Company Overview Komerční Pojišt ovna a.s. key facts Komerční Pojišt ovna a.s. key financials Business Environment and Country Risk Business Confidence Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 4

5 Market capitalization trend Prague Stock Exchange, Czech Republic Economic Performance GDP at constant prices (US$) GDP per capita at constant prices (US$) GDP at current prices (US$) GDP per capita at current prices (US$) GDP by key segments Agriculture, hunting, forestry and fishing net output at current prices (CZK) Agriculture, hunting, forestry and fishing net output at current prices (US$) Agriculture, hunting, forestry and fishing net output at current prices as a percentage of GDP Manufacturing net output at current prices (CZK) Manufacturing net output at current prices (US$) Manufacturing net output at current prices as a percentage of GDP Mining, manufacturing and utilities net output at current prices (CZK) Mining, manufacturing and utilities at current prices (US$) Mining, manufacturing and utilities at current prices, as percentage of GDP Construction net output at current prices (CZK) Construction net output at current prices, (US$) Construction net output at current prices as a percentage of GDP Inflation rate Exports as a percentage of GDP Imports as a percentage of GDP Exports growth Imports growth Annual average exchange rate CZK US$ Infrastructure Quality and Availability Commercial vehicles exports total value Commercial vehicles imports total value Automotive exports total value Automotive imports total value Total internet subscribers Labor Force Labor force Unemployment rate Demographics Gross national disposable income (US$) Total population Urban and rural populations Median age of the population Age distribution of the total population Appendix Methodology Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 5

6 11.2 Contact Timetric About Timetric Timetric s Services Disclaimer Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 6

7 LIST OF FIGURES Figure 1: Czech Insurance Overall Written Premium by Segment (CZK Billion), Figure 2: Czech Insurance Dynamics by Segment (%), Figure 3: Czech Life Insurance Written Premium by Category (CZK Billion), Figure 4: Czech Life Insurance Written Premium by Category (% Share), 2012 and Figure 5: Czech Life Insurance Dynamics by Category (%), Figure 6: Czech Life Insurance Earned Premium (CZK Billion), Figure 7: Czech Life Insurance Earned Premium (CZK Billion), Figure 8: Czech Life Insurance Sum Assured (CZK Billion), Figure 9: Czech Life Insurance Sum Assured (CZK Billion), Figure 10: Czech Life Insurance Paid Claims (CZK Billion), Figure 11: Czech Life Insurance Paid Claims (CZK Billion), Figure 12: Czech Life Insurance Incurred Loss (CZK Billion), Figure 13: Czech Life Insurance Incurred Loss (CZK Billion), Figure 14: Czech Life Insurance Loss Ratio (%), Figure 15: Czech Life Insurance Loss Ratio (%), Figure 16: Czech Life Insurance Commissions and Expenses (CZK Billion), Figure 17: Czech Life Insurance Commissions and Expenses (CZK Billion), Figure 18: Czech Life Insurance Combined Ratio (%), Figure 19: Czech Life Insurance Combined Ratio (%), Figure 20: Czech Life Insurance Frauds and Crimes (CZK Billion), Figure 21: Czech Life Insurance Frauds and Crimes (CZK Billion), Figure 22: Czech Life Insurance Total Assets (CZK Billion), Figure 23: Czech Life Insurance Total Assets (CZK Billion), Figure 24: Czech Life Insurance Total Investment Income (CZK Billion), Figure 25: Czech Life Insurance Total Investment Income (CZK Billion), Figure 26: Czech Life Insurance Retentions (CZK Billion), Figure 27: Czech Life Insurance Retentions (CZK Billion), Figure 28: Czech Life Insurance Investment Portfolio (CZK Billion), Figure 29: Czech Life Insurance Investment Portfolio (%), 2008 and Figure 30: Czech Life Insurance Penetration (%), Figure 31: Czech Life Insurance Density (Number of Policies per Capita), Figure 32: Czech Life Insurance Number of Active Policies (Thousand), Figure 33: Czech Life Insurance Number of Active Policies (Thousand), Figure 34: Czech Life Insurance Premium per Capita (CZK), Figure 35: Czech Individual Life Insurance Number of Active Policies (Thousand), Figure 36: Czech Individual Life Insurance Number of Active Policies (Thousand), Figure 37: Czech Individual Life Insurance Written Premium (CZK Billion), Figure 38: Czech Individual Life Insurance Written Premium (CZK Billion), Figure 39: Czech Individual General Annuity Insurance Number of Active Policies (Thousand), Figure 40: Czech Individual General Annuity Insurance Number of Active Policies (Thousand), Figure 41: Czech Individual General Annuity Insurance Written Premium (CZK Billion), Figure 42: Czech Individual General Annuity Insurance Written Premium (CZK Billion), Figure 43: Czech Individual Marriage and Birth Insurance Number of Active Policies (Thousand), Figure 44: Czech Individual Marriage and Birth Insurance Number of Active Policies (Thousand), Figure 45: Czech Individual Marriage and Birth Insurance Written Premium (CZK Billion), Figure 46: Czech Individual Marriage and Birth Insurance Written Premium (CZK Billion), Figure 47: Czech Individual Unit-Linked Insurance Number of Active Policies (Thousand), Figure 48: Czech Individual Unit-Linked Insurance Number of Active Policies (Thousand), Figure 49: Czech Individual Unit-Linked Insurance Written Premium (CZK Billion), Figure 50: Czech Individual Unit-Linked Insurance Written Premium (CZK Billion), Figure 51: Czech Individual Term Life Insurance Number of Active Policies (Thousand), Figure 52: Czech Individual Term Life Insurance Number of Active Policies (Thousand), Figure 53: Czech Individual Term Life Insurance Written Premium (CZK Billion), Figure 54: Czech Individual Term Life Insurance Written Premium (CZK Billion), Figure 55: Czech Individual Other Insurance Number of Active Policies (Thousand), Figure 56: Czech Individual Other Insurance Number of Active Policies (Thousand), Figure 57: Czech Individual Other Insurance Written Premium (CZK Billion), Figure 58: Czech Individual Other Insurance Written Premium (CZK Billion), Figure 59: Czech Individual Single-Premium Insurance Number of Active Policies (Thousand), Figure 60: Czech Individual Single-Premium Insurance Number of Active Policies (Thousand), Figure 61: Czech Individual Single-Premium Insurance Written Premium (CZK Billion), Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 7

8 Figure 62: Czech Individual Single-Premium Insurance Written Premium (CZK Billion), Figure 63: Czech Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), Figure 64: Czech Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), Figure 65: Czech Individual Non-Single-Premium Insurance Written Premium (CZK Billion), Figure 66: Czech Individual Non-Single-Premium Insurance Written Premium (CZK Billion), Figure 67: Czech Life Insurance New Business Written Premium by Distribution Channel (% Share), 2012 and Figure 68: Czech Life Insurance Direct Marketing Commission Paid (CZK Billion), Figure 69: Czech Life Insurance Direct Marketing Commission Paid (CZK Billion), Figure 70: Czech Life Insurance New Business Written Premium Through Direct Marketing (CZK Billion), Figure 71: Czech Life Insurance New Business Written Premium Through Direct Marketing (CZK Billion), Figure 72: Czech Life Insurance New Policies Sold Through Direct Marketing (Thousand), Figure 73: Czech Life Insurance New Policies Sold Through Direct Marketing (Thousand), Figure 74: Czech Life Insurance Number of Direct Marketing Distributors, Figure 75: Czech Life Insurance Number of Direct Marketing Distributors, Figure 76: Czech Life Insurance Bancassurance Commission Paid (CZK Billion), Figure 77: Czech Life Insurance Bancassurance Commission Paid (CZK Billion), Figure 78: Czech Life Insurance New Business Written Premium Through Bancassurance (CZK Billion), Figure 79: Czech Life Insurance New Business Written Premium Through Bancassurance (CZK Billion), Figure 80: Czech Life Insurance New Policies Sold Through Bancassurance (Thousand), Figure 81: Czech Life Insurance New Policies Sold Through Bancassurance (Thousand), Figure 82: Czech Life Insurance Number of Bancassurance Distributors, Figure 83: Czech Life Insurance Number of Bancassurance Distributors, Figure 84: Czech Life Insurance Commission Paid to Agencies (CZK Billion), Figure 85: Czech Life Insurance Commission Paid to Agencies (CZK Billion), Figure 86: Czech Life Insurance New Business Written Premium Through Agencies (CZK Billion), Figure 87: Czech Life Insurance New Business Written Premium Through Agencies (CZK Billion), Figure 88: Czech Life Insurance New Policies Sold Through Agencies (Thousand), Figure 89: Czech Life Insurance New Policies Sold Through Agencies (Thousand), Figure 90: Czech Life Insurance Number of Agencies, Figure 91: Czech Life Insurance Number of Agencies, Figure 92: Czech Life Insurance E-Commerce Commission Paid (CZK Billion), Figure 93: Czech Life Insurance E-Commerce Commission Paid (CZK Billion), Figure 94: Czech Life Insurance New Business Written Premium Through E-Commerce (CZK Billion), Figure 95: Czech Life Insurance New Business Written Premium Through E-Commerce (CZK Billion), Figure 96: Czech Life Insurance New Policies Sold Through E-Commerce (Thousand), Figure 97: Czech Life Insurance New Policies Sold Through E-Commerce (Thousand), Figure 98: Czech Life Insurance Number of E-Commerce Distributors, Figure 99: Czech Life Insurance Number of E-Commerce Distributors, Figure 100: Czech Life Insurance Commission Paid to Brokers (CZK Billion), Figure 101: Czech Life Insurance Commission Paid to Brokers (CZK Billion), Figure 102: Czech Life Insurance New Business Written Premium Through Brokers (CZK Billion), Figure 103: Czech Life Insurance New Business Written Premium Through Brokers (CZK Billion), Figure 104: Czech Life Insurance New Policies Sold Through Brokers (Thousand), Figure 105: Czech Life Insurance New Policies Sold Through Brokers (Thousand), Figure 106: Czech Life Insurance Number of Brokers, Figure 107: Czech Life Insurance Number of Brokers, Figure 108: Czech Life Insurance Commission Paid to Other Channels (CZK Billion), Figure 109: Czech Life Insurance Commission Paid to Other Channels (CZK Billion), Figure 110: Czech Life Insurance New Business Written Premium Through Other Channels (CZK Billion), Figure 111: Czech Life Insurance New Business Written Premium Through Other Channels (CZK Billion), Figure 112: Czech Life Insurance New Policies Sold Through Other Channels (Thousand), Figure 113: Czech Life Insurance New Policies Sold Through Other Channels (Thousand), Figure 114: Czech Life Insurance Number of Distributors in Other Channels, Figure 115: Czech Life Insurance Number of Distributors in Other Channels, Figure 116: Czech Life Insurance Five Forces Analysis Figure 117: Czech Premium Ceded to Reinsurance by Category (CZK Billion), Figure 118: Czech Premium Ceded to Reinsurance by Type of Insurance (CZK Billion), Figure 119: Czech Reinsurance Dynamics by Type of Insurance (%), Table 121: Czech Life Insurance Percentage of Reinsurance Ceded (%), Figure 120: Czech Life Insurance Percentage of Reinsurance Ceded (%), Figure 121: Czech Life Insurance Percentage of Reinsurance Ceded (%), Figure 122: Shares of Key Insurers in the Czech Life Segment (%), Figure 123: Net Earned Premium Top Four Czech Life Insurers, Figure 124: Paid Claims Top Four Czech Life Insurers, Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 8

9 Figure 125: Incurred Loss Top Four Czech Life Insurers, Figure 126: Total Assets Top Four Czech Life Insurers, Figure 127: Prague Stock Exchange Market Capitalization (US$ Billion), Figure 128: Czech GDP at Constant Prices (US$ Billion), Figure 129: Czech GDP Per Capita at Constant Prices (US$), Figure 130: Czech GDP at Current Prices (US$ Billion), Figure 131: Czech GDP Per Capita at Current Prices (US$), Figure 132: Czech GDP by Key Segments (%), 2009 and Figure 133: Czech Agriculture, Hunting, Forestry and Fishing Net Output at Current Prices (CZK Billion), Figure 134: Czech Agriculture, Hunting, Forestry and Fishing Net Output at Current Prices (US$ Billion), Figure 135: Czech Agriculture, Hunting, Forestry and Fishing Net Output at Current Prices as a Percentage of GDP (%), Figure 136: Czech Manufacturing Net Output at Current Prices (CZK Billion), Figure 137: Czech Manufacturing Net Output at Current Prices (US$ Billion), Figure 138: Czech Manufacturing Net Output at Current Prices as a Percentage of GDP (%), Figure 139: Czech Mining, Manufacturing and Utilities Net Output at Current Prices (CZK Billion), Figure 140: Czech Mining, Manufacturing and Utilities Net Output at Current Prices (US$ Billion), Figure 141: Czech Mining, Manufacturing and Utilities Net Output at Current Prices as a Percentage of GDP (%), Figure 142: Czech Construction Net Output at Current Prices (CZK Billion), Figure 143: Czech Construction Net Output at Current Prices (US$ Billion), Figure 144: Czech Construction Output at Current Prices as a Percentage of GDP (%), Figure 145: Czech Inflation Rate (%), Figure 146: Czech Exports as a Percentage of GDP (%), Figure 147: Czech Imports as a Percentage of GDP (%), Figure 148: Czech Exports Growth (%), Figure 149: Czech Imports Growth (%), Figure 150: Czech Annual Average Exchange Rate, US$ CZK, Figure 151: Czech Commercial Vehicles Exports Total Value (US$ Million), Figure 152: Czech Commercial Vehicles Imports Total Value (US$ Million), Figure 153: Czech Automotive Exports Total Value (US$ Billion), Figure 154: Czech Automotive Imports Total Value (US$ Million), Figure 155: Czech Internet Subscriptions (Millions), Figure 156: Size of the Czech Labor Force in the Years Age Group (Million), Figure 157: Czech Unemployment Rate (%), Figure 158: Czech Gross National Disposable Income (US$ Billion), Figure 159: Czech Total Population (Million), Figure 160: Czech Urban and Rural Populations (%), Figure 161: Czech Median Age of Population (Years), Figure 162: Czech Population Distribution by Age (%), Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 9

10 LIST OF TABLES Table 1: Insurance Industry Definitions Table 2: Czech Insurance Overall Written Premium by Segment (CZK Billion), Table 3: Czech Insurance Overall Written Premium by Segment (US$ Billion), Table 4: Czech Insurance Overall Written Premium by Segment (CZK Billion), Table 5: Czech Insurance Overall Written Premium by Segment (US$ Billion), Table 6: Czech Insurance Segmentation (% Share), Table 7: Czech Life Insurance Written Premium by Category (CZK Billion), Table 8: Czech Life Insurance Written Premium by Category (US$ Billion), Table 9: Czech Life Insurance Written Premium by Category (CZK Billion), Table 10: Czech Life Insurance Written Premium by Category (US$ Billion), Table 11: Czech Life Insurance Earned Premium (CZK Billion), Table 12: Czech Life Insurance Earned Premium (CZK Billion), Table 13: Czech Life Insurance Sum Assured (CZK Billion), Table 14: Czech Life Insurance Sum Assured (CZK Billion), Table 15: Czech Life Insurance Paid Claims (CZK Billion), Table 16: Czech Life Insurance Paid Claims (CZK Billion), Table 17: Czech Life Insurance Incurred Loss (CZK Billion), Table 18: Czech Life Insurance Incurred Loss (CZK Billion), Table 19: Czech Life Insurance Loss Ratio (%), Table 20: Czech Life Insurance Loss Ratio (%), Table 21: Czech Life Insurance Commissions and Expenses (CZK Billion), Table 22: Czech Life Insurance Commissions and Expenses (CZK Billion), Table 23: Czech Life Insurance Combined Ratio (%), Table 24: Czech Life Insurance Combined Ratio (%), Table 25: Czech Life Insurance Frauds and Crimes (CZK Billion), Table 26: Czech Life Insurance Frauds and Crimes (CZK Billion), Table 27: Czech Life Insurance Total Assets (CZK Billion), Table 28: Czech Life Insurance Total Assets (CZK Billion), Table 29: Czech Life Insurance Total Investment Income (CZK Billion), Table 30: Czech Life Insurance Total Investment Income (CZK Billion), Table 31: Czech Life Insurance Retentions (CZK Billion), Table 32: Czech Life Insurance Retentions (CZK Billion), Table 33: Czech Individual Life Insurance Number of Active Policies (Thousand), Table 34: Czech Individual Life Insurance Number of Active Policies (Thousand), Table 35: Czech Individual Life Insurance Written Premium (CZK Billion), Table 36: Czech Individual Life Insurance Written Premium (CZK Billion), Table 37: Czech Individual General Annuity Insurance Number of Active Policies (Thousand), Table 38: Czech Individual General Annuity Insurance Number of Active Policies (Thousand), Table 39: Czech Individual General Annuity Insurance Written Premium (CZK Billion), Table 40: Czech Individual General Annuity Insurance Written Premium (CZK Billion), Table 41: Czech Individual Marriage and Birth Insurance Number of Active Policies (Thousand), Table 42: Czech Individual Marriage and Birth Insurance Number of Active Policies (Thousand), Table 43: Czech Individual Marriage and Birth Insurance Written Premium (CZK Billion), Table 44: Czech Individual Marriage and Birth Insurance Written Premium (CZK Billion), Table 45: Czech Individual Unit-Linked Insurance Number of Active Policies (Thousand), Table 46: Czech Individual Unit-Linked Insurance Number of Active Policies (Thousand), Table 47: Czech Individual Unit-Linked Insurance Written Premium (CZK Billion), Table 48: Czech Individual Unit-Linked Insurance Written Premium (CZK Billion), Table 49: Czech Individual Term Life Insurance Number of Active Policies (Thousand), Table 50: Czech Individual Term Life Insurance Number of Active Policies (Thousand), Table 51: Czech Individual Term Life Insurance Written Premium (CZK Billion), Table 52: Czech Individual Term Life Insurance Written Premium (CZK Billion), Table 53: Czech Individual Other Insurance Number of Active Policies (Thousand), Table 54: Czech Individual Other Insurance Number of Active Policies (Thousand), Table 55: Czech Individual Other Insurance Written Premium (CZK Billion), Table 56: Czech Individual Other Insurance Written Premium (CZK Billion), Table 57: Czech Individual Single-Premium Insurance Number of Active Policies (Thousand), Table 58: Czech Individual Single-Premium Insurance Number of Active Policies (Thousand), Table 59: Czech Individual Single-Premium Insurance Written Premium (CZK Billion), Table 60: Czech Individual Single-Premium Insurance Written Premium (CZK Billion), Table 61: Czech Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 10

11 Table 62: Czech Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), Table 63: Czech Individual Non-Single-Premium Insurance Written Premium (CZK Billion), Table 64: Czech Individual Non-Single-Premium Insurance Written Premium (CZK Billion), Table 65: Czech Life Insurance Direct Marketing Commission Paid (CZK Billion), Table 66: Czech Life Insurance Direct Marketing Commission Paid (CZK Billion), Table 67: Czech Life Insurance New Business Written Premium Through Direct Marketing (CZK Billion), Table 68: Czech Life Insurance New Business Written Premium Through Direct Marketing (CZK Billion), Table 69: Czech Life Insurance New Policies Sold Through Direct Marketing (Thousand), Table 70: Czech Life Insurance New Policies Sold Through Direct Marketing (Thousand), Table 71: Czech Life Insurance Number of Direct Marketing Distributors, Table 72: Czech Life Insurance Number of Direct Marketing Distributors, Table 73: Czech Life Insurance Bancassurance Commission Paid (CZK Billion), Table 74: Czech Life Insurance Bancassurance Commission Paid (CZK Billion), Table 75: Czech Life Insurance New Business Written Premium Through Bancassurance (CZK Billion), Table 76: Czech Life Insurance New Business Written Premium Through Bancassurance (CZK Billion), Table 77: Czech Life Insurance New Policies Sold Through Bancassurance (Thousand), Table 78: Czech Life Insurance New Policies Sold Through Bancassurance (Thousand), Table 79: Czech Life Insurance Number of Bancassurance Distributors, Table 80: Czech Life Insurance Number of Bancassurance Distributors, Table 81: Czech Life Insurance Commission Paid to Agencies (CZK Billion), Table 82: Czech Life Insurance Commission Paid to Agencies (CZK Billion), Table 83: Czech Life Insurance New Business Written Premium Through Agencies (CZK Billion), Table 84: Czech Life Insurance New Business Written Premium Through Agencies (CZK Billion), Table 85: Czech Life Insurance New Policies Sold Through Agencies (Thousand), Table 86: Czech Life Insurance New Policies Sold Through Agencies (Thousand), Table 87: Czech Life Insurance Number of Agencies, Table 88: Czech Life Insurance Number of Agencies, Table 89: Czech Life Insurance E-Commerce Commission Paid (CZK Billion), Table 90: Czech Life Insurance E-Commerce Commission Paid (CZK Billion), Table 91: Czech Life Insurance New Business Written Premium Through E-Commerce (CZK Billion), Table 92: Czech Life Insurance New Business Written Premium Through E-Commerce (CZK Billion), Table 93: Czech Life Insurance New Policies Sold Through E-Commerce (Thousand), Table 94: Czech Life Insurance New Policies Sold Through E-Commerce (Thousand), Table 95: Czech Life Insurance Number of E-Commerce Distributors, Table 96: Czech Life Insurance Number of E-Commerce Distributors, Table 97: Czech Life Insurance Commission Paid to Brokers (CZK Billion), Table 98: Czech Life Insurance Commission Paid to Brokers (CZK Billion), Table 99: Czech Life Insurance New Business Written Premium Through Brokers (CZK Billion), Table 100: Czech Life Insurance New Business Written Premium Through Brokers (CZK Billion), Table 101: Czech Life Insurance New Policies Sold Through Brokers (Thousand), Table 102: Czech Life Insurance New Policies Sold Through Brokers (Thousand), Table 103: Czech Life Insurance Number of Brokers, Table 104: Czech Life Insurance Number of Brokers, Table 105: Czech Life Insurance Commission Paid to Other Channels (CZK Billion), Table 106: Czech Life Insurance Commission Paid to Other Channels (CZK Billion), Table 107: Czech Life Insurance New Business Written Premium Through Other Channels (CZK Billion), Table 108: Czech Life Insurance New Business Written Premium Through Other Channels (CZK Billion), Table 109: Czech Life Insurance New Policies Sold Through Other Channels (Thousand), Table 110: Czech Life Insurance New Policies Sold Through Other Channels (Thousand), Table 111: Czech Life Insurance Number of Distributors in Other Channels, Table 112: Czech Life Insurance Number of Distributors in Other Channels, Table 113: Czech Reinsurance by Category (CZK Billion), Table 114: Czech Reinsurance by Category (US$ Million), Table 115: Czech Reinsurance by Category (CZK Billion), Table 116: Czech Reinsurance by Category (US$ Million), Table 117: Czech Premium Ceded to Reinsurance by Type of Insurance (CZK Billion), Table 118: Czech Premium Ceded to Reinsurance by Type of Insurance (US$ Billion), Table 119: Czech Premium Ceded to Reinsurance by Type of Insurance (CZK Billion), Table 120: Czech Premium Ceded to Reinsurance by Type of Insurance (US$ Billion), Table 121: Czech Life Insurance Percentage of Reinsurance Ceded (%), Table 122: Czech Life Insurance Percentage of Reinsurance Ceded (%), Table 123: Shares of Key Insurers in the Czech Life Segment (%), Table 124: Česká Pojišt ovna a.s, Key Facts Table 125: Česká Pojišt ovna a.s, Key Financials (CZK Million), Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 11

12 Table 126: Kooperativa Pojišt ovna, a.s., Key Facts Table 127: Kooperativa Pojišt ovna, a.s, Key Financials (CZK Million), Table 128: Pojišt ovna České Spořitelny, a.s., Key Facts Table 129: Pojišt ovna České Spořitelny, a.s., Key Financials (CZK Million), Table 130: ING Pojišt ovna, Key Facts Table 131: ING Pojišt ovna, Key Financials (CZK Million), Table 132: ČSOB Pojišt ovna, a.s., Key Facts Table 133: ČSOB Pojišt ovna, a.s., Key Financials (CZK Million), Table 134: Generali Pojišt ovna a.s., Key Facts Table 135: Generali Pojišt ovna a.s., Key Financials (CZK Million), Table 136: Axa Životní Pojišt ovna, Key Facts Table 137: Axa Životní Pojišt ovna, Key Financials (CZK Million), Table 138: Allianz Pojišt ovna, a.s., Key Facts Table 139: Allianz Pojišt ovna, a.s., Key Financials (CZK Million), Table 140: Metlife Amcico a.s., Key Facts Table 141: Metlife Amcico a.s., Key Financials (CZK Million), Table 142: Komerční Pojišt ovna a.s., Key Facts Table 143: Komerční Pojišt ovna a.s., Key Financials (CZK Million), Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 12

13 INTRODUCTION 2 Introduction 2.1 What is this Report About? This report is the result of extensive research into the life insurance segment in the Czech Republic, covering its dynamics and competitive landscape. It provides insights into the size and forecast for the overall life insurance segment, and categories such as individual and group insurance, and provides details of products in each category. This report also provides an overview of the leading companies in the life insurance segment, along with details of strategic initiatives undertaken. 2.2 Definitions All data is collected in local currency. Conversions into US dollars (US$) of current and forecast data are made at the 2012 average annual conversion rate. Most values are displayed to one decimal place. As such, growth rates may appear inconsistent with absolute values due to rounding. For the purposes of this report, the review period is and the forecast period is The key insurance industry terms covered in the report are defined below: Table 1: Insurance Industry Definitions Term Ceding company Incurred loss Claim ratio Definition A primary insurer that transfers some of its insurance risk by ceding a proportion of its total written premium through a reinsurance contract. The sum of claims paid by an insurance company and the change in the provision for outstanding claims irrespective of whether or not they have been reported. Claims payable as a percentage of premium income. Commission and expenses Comprehensive loss ratio Earned premium Endow ment policy Facultative reinsurance Gross claim Gross written premium Group annuity Insurance density and penetration Insurance fraud The sum of acquisition cost and administrative cost. The acquisition cost is the percentage of a premium produced that is retained as compensation by insurance agents and brokers. The ratio of claims incurred to net premium earned. The amount of money considered to have been earned on a policy by an insurer. It is calculated by multiplying the original premium by the percentage of the policy s term which has expired w ithout a claim being made. A scheme in which the term of the policy is defined for a specified period, such as 15, 25 or 30 years. The insurer pays the claim to the family of the assured in an event of his or her death within the policy's term or in an event of the assured surviving the policy's term. An arrangement for separate reinsurance for each risk that the primary insurer underwrites. The reinsurer can accept or reject any risk presented by the primary insurer seeking reinsurance. The amount payable by an insurance company before allowances is made for credits that may be due in the form of reinsurance, subrogation or salvage. The total amount of premiums (before deduction of reinsurance costs) customers are required to pay for insurance policies written during the year. A life insurance scheme providing annuities at retirement to a group of people under a single contract. It is usually bought by an employer for the benefit of its employees. The percentage of total written premium to the country s GDP. Any act committed w ith the intent to obtain payment from an insurer through fraudulent means. Lapsed policy A policy that is terminated due to the non-payment of the premium. Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 13

14 INTRODUCTION Table 1: Insurance Industry Definitions Term Loss ratio Liability insurance Definition The ratio of total losses paid out in the form of claims plus adjustment expenses divided by the total earned premium. A type of insurance that covers legal claims by third parties against the insured. Loss reserve The estimated amount of claims incurred but not yet settled. Maturity claim The payment made to a policyholder at the end of the stipulated term of a term life insurance policy. Per capita premium The ratio of the total written premium to the country s total population. Premium ceded The share of premiums transferred to a reinsurance company by a primary insurer. Single-premium life insurance policy A life insurance scheme in w hich a lump sum is paid into the policy in return for an assured sum of money in the event of the policyholder s death. Term insurance A life insurance scheme that provides protection for a specified period, usually between five and 20 years. The policy expires without value if the insured survives the stated period. Treaty reinsurance Direct marketing E-commerce A reinsurance agreement applying to the reinsurance of a class or some classes of business, instead of an individual risk. Direct Marketing channels for insurance policies include insurance companies sales forces, telemarketing, postal mail, , call centers and mobile phones. The distribution of insurance policies online through a company or third-party website. Agencies Insurance brokers Bancassurance Other distribution channels Individuals and corporate agencies which are licensed to sell insurance for one or more specific insurance companies. Individuals or businesses which sell insurance policies, and advise and represent the policyholder. They differ from insurance agents, which act on the behalf of an insurance company. The partnership between a bank and an insurance company in which the insurance company uses the bank s sales channel to sell insurance. Other distribution channels include post offices, convenience stores, multi-level marketing, any channel other than agencies, direct marketing, bancassurance and the above-mentioned channels. Source: Timetric analysis Timetric Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 14

15 INTRODUCTION 2.3 Methodology All Timetric insurance reports are created by following a comprehensive, four-stage methodology. This includes market study, research, analysis and quality control. 1) Market Study A. Standardization Definitions are specified using recognized industry classifications. The same definition is used for every country. Annual average currency exchange rates are used for the latest completed year. These are then applied across both the historical and forecast data to remove exchange rate fluctuations. B. Internal audit Review of in-house databases to gather existing data: Historic market databases and reports Company database C. Trend monitoring Review of the latest insurance companies and industry trends 2) Research A. Source s Collection of the latest market-specific data from a wide variety of industry sources: Government statistics Industry associations Company filings International organizations Insurance regulatory agencies B. Expert opinion Collation of opinion taken from leading insurance industry experts Analysis of third-party opinion and forecasts: Broker reports Media Official government sources C. Data consolidation and verification Consolidation of data and opinion to create historical datasets Creation of models to benchmark data across sectors and regions 3) Analysis A. Market forecasts Feeding forecast data into market models: Macroeconomic indicators Industry-specific drivers Analysis of insurance industry database to identify trends: Latest insurance trends Key drivers of the insurance industry Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 15

16 INTRODUCTION B. Report writing Analysis of market data Discussion of company and industry trends and issues Review of financial deals and insurance trends 4) Quality Control Templates Detailed process manuals Standardized report templates and accompanying style guides Complex forecasting tools to ensure that forecast methodologies are consistently applied Quality-control checklists Quality-control proce ss Peer review Senior-level QC Random spot checks on data integrity Benchmark checks across databases Market data cross-checked for consistency with accumulated data from: Company filings Government sources Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 16

17 APPENDIX 3 Appendix 3.1 Methodology Timetric s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting and advanced statistical expertise. Timetric adheres to the Codes of Practice of the Market Research Society ( and the Society of Competitive Intelligence Professionals ( All Timetric databases are continuously updated and revised. 3.2 Contact Timetric If you have any queries about this report, or would like any further information, please contact info@timetric.com. 3.3 About Timetric Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and comment. Timetric helps over 1,500 financial services institutions and their partner companies around the world benefit from better, timelier decisions. Timetric provides: High-quality data including proprietary, specialized industry data, survey -based research, social media monitoring, macroeconomic data and forecasts Expert analysis from experienced economists and analysts, who use robust proprietary models, indices and forecasts Powerful proprietary visualization and workflow technologies developed over years of extensive investment Timetric has office locations in London, New York, San Francisco, Hyderabad, Seoul, Singapore and Sydney. It employs 500 people, including 150 analysts and economists, and 200 professional researchers. Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 17

18 APPENDIX 3.4 Timetric s Services Intelligence Centers Timetric s industry intelligence centers are premium web-based services that provide access to interactive tools, comprehensive research and expert analysis in key sectors. They provide invaluable decision support presented in an easily digestible format and grounded in deep research. Timetric offers Intelligence Centers covering the following industries: Banking Insurance Wealth Construction Travel and Tourism Briefing Services Timetric offers a range of briefing services, which offer cutting-edge thought leadership and expert commentary on and for the financial services industries. Driven by influential and respected editorial teams with years of experience in their respective fields, these services deliver need -to-know insight and analysis to decision makers across the financial services value chain. Timetric offers briefing services covering the following financial sectors: Consultancy Accountancy Asset Finance Banking Cards and Payments Insurance Timetric specializes in the development and delivery of innovative research solutions t hat are designed to provide competitive advantage and profitability to clients. Dedicated industry analysts and economists provide expert advice and actionable recommendations underpinned by Timetric s market and country knowledge, experience and propriet ary databases, panels and research infrastructure. For projects requiring quantitative data, Timetric undertakes special research projects using its in-house panels and survey technology. These provide ready access to an extensive source of specialist busi ness executives and consumers. Core capabilities include: Economic Re search and Consulting Highly experienced economists provide a number of bespoke research services covering subjects ranging from macroeconomic forecasting to sector outlooks, business presentations and workshops. Industry Analysis and Consulting Information analysis, independent expert opinion and advice, facilitated decision or strategic support, are provided by Timetric s extensive body of proprietary data and analysis models. It provi des ex pertisebased consulting to deliver solutions that best suit its clients requirements. Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 18

19 APPENDIX Quantitative Research Timetric connects with thousands of potential customers for various markets every day. Using sophisticated, interactive and highly engaging graphical surveys, research speed is increased and costs reduced, while ensuring that respondents deliver the insight needed. Qualitative Research Timetric s Qualitative Research service helps customers understand the emotional and cultural behaviors of a target audience. Timetric provides unique access through market-leading publications and information services to decision makers specifically brought together to discuss topics that are important to the client. Technology Solutions Timetric has built a unique technological platform to collect and visualize data, and employs some of the world s leading experts on data collection and visualization. Through technology and software consulting services, Timetric can provide clients with the means to gather and visualize the data the client has, or wants to collect. 3.5 Disclaimer All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Timetric. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Timetric delivers will be based on information gathered in good faith from both primary and secondary sources, the accuracy of which Timetric is not always in a position to guarantee. Timetric will accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. Life Insurance in the Czech Republic, Key Trends and Opportunities to 2017 Page 19