Gross written premiums (GWP) in the Central and Eastern Europe region totaled €26.35 bn, marking a 7.6% year-on-year increase. Meanwhile, insurance claims paid stayed nearly stable at €11.9 bn, according to XPRIMM. Beinsure analyzed the report and highlighted the key points.
All CEE markets, except Slovenia, recorded positive dynamics, often at double-digit rates. The smaller markets, such as Kosovo, Albania, Bosnia & Herzegovina, and Montenegro, led with the highest growth rates.
However, these figures should be considered carefully, as only Q1 results are available for Bosnia & Herzegovina and Serbia. Also, with missing claims data from Slovenia and Romania, the potential error may significantly affect the final figures.
Key findings of the CEE Insurance Market
- CEE region’s GWP reached €26.35 bn in 1H2024, a 7.6% increase year-on-year.
- Claims paid remained nearly unchanged at €11.9 bn, though missing data from Bosnia & Herzegovina, Serbia, Slovenia, and Romania could impact the final figures.
- All CEE markets, except Slovenia, recorded positive dynamics, often at double-digit rates, with Poland leading among major markets at 13.4% growth.
- Life insurance GWP increased to €6.79 bn, up 5.7% year-on-year, with Poland showing an 8% rise and a rebound in unit-linked product sales.
- Czechia and Hungary saw declines in unit-linked product sales, but Hungary’s overall life insurance segment still grew.
- Non-life insurance GWP climbed to €19.56 bn, up 8.29%, with claims paid growing only 3.5% to €7.96 bn, though actual claims may be higher.
- Top Non-Life Markets: Poland, Czechia, Romania, Hungary, and Slovenia remained the top five non-life markets, accounting for 76% of regional GWP.
- Motor insurance GWP grew for both MTPL (7.26%) and motor hull (12.7%), but claims inflation continues to challenge insurers, especially in MTPL.
- Property insurance GWP rose by 11.87% to €4.14 bn, with claim payments up 18.7%, reflecting the impact of secondary perils.
Among major markets, Poland experienced the strongest increase at 13.4%. Romania, Slovakia, Hungary, and Czechia saw single-digit growth. Slovenia, however, faced a 10% decline, which we’ll detail below.
Slovenia’s negative GWP trend stemmed from a sharp 16.7% drop in non-life insurance, triggered by a government decision effective January 1, 2024. The policy change replaced voluntary supplementary health insurance with a mandatory health contribution under the Health Insurance Institute of Slovenia, expiring all prior private policies on December 31.
Life Insurance in Central and Eastern Europe
Life insurance GWP rose to €6.79 bn, up 5.7% year-on-year. After a period of slight regional decline, driven by the Polish market’s downsizing, Poland posted a second consecutive year of growth in H1 2024. Sales of unit-linked (UL) products also rebounded, increasing by 4.6% to around €1.84 bn.
XPRIMM estimates showed that Czechia was the only market with a negative life insurance trend, mostly due to lower UL product sales. Hungary also saw a 2% drop in UL sales, but overall life insurance grew. Poland’s life insurance GWP surged by nearly 8%, with gains across all subclasses.
Non-Life Insurance in Central and Eastern Europe
Non-life insurance GWP reached €19.56 bn, an 8.29% year-on-year increase. Claims paid grew modestly by 3.5% to about €7.96 bn, but this figure omits data from Romania and Slovenia, suggesting higher actual claims in line with GWP growth.
Every market, aside from Slovenia, experienced premium growth despite economic challenges. In many areas, claims rose faster than premiums. Poland, Czechia, Romania, Hungary, and Slovenia remained the top five non-life markets, jointly accounting for 76% of regional GWP.
Motor Insurance in CEE
Motor insurance led the non-life segment, with MTPL premiums hitting €5.87 bn (up 7.26% year-on-year) and motor hull premiums reaching €4.4 bn (up 12.7%). Claims costs rose almost everywhere, often at double-digit rates.
Inflation continues to impact motor insurance, particularly claims expenses. Even with inflation easing, claims costs persist as a challenge. While motor hull prices have risen, MTPL premiums remain highly price-sensitive. Insurers are cautiously raising MTPL rates, but the increases are modest.
Property Insurance in CEE
Property insurance GWP totaled €4.14 bn, climbing 11.87% year-on-year. Property claim payments rose by 18.7% to €1.3 bn, excluding data from Romania and Slovenia. Secondary perils have become a stable concern, with the frequency and severity of these events maintaining an upward trend.
FAQ
Gross written premiums (GWP) in the CEE region increased by 7.6% year-on-year, totaling €26.35 bn. Claims paid remained nearly the same as last year at €11.9 bn, but missing data from Bosnia & Herzegovina, Serbia, Slovenia, and Romania could impact final figures.
Poland recorded the highest GWP growth among major markets, with a 13.4% increase. Smaller markets, such as Kosovo, Albania, and Montenegro, also saw strong double-digit growth rates.
Slovenia’s GWP fell by 10%, mainly due to a 16.7% drop in non-life insurance. The decline followed a government decision to replace voluntary supplementary health insurance with a mandatory public health contribution starting January 1, 2024.
Life insurance GWP rose 5.7% year-on-year to €6.79 bn. Poland contributed significantly with nearly 8% growth, while sales of unit-linked products improved. Czechia and Hungary faced declines in unit-linked sales, but the overall life insurance market grew.
Non-life insurance GWP increased by 8.29% to €19.56 bn. Claims grew by only 3.5%, reaching €7.96 bn, but this excludes claims data from Romania and Slovenia. Most markets, apart from Slovenia, showed strong premium growth, even under challenging economic conditions.
Motor insurance premiums rose by 7.26% for MTPL (€5.87 bn) and 12.7% for motor hull (€4.4 bn). Inflation remains a key challenge, especially for claims costs. While motor hull insurance prices increased, MTPL rates have been slower to rise due to price sensitivity.
Property insurance GWP reached €4.14 bn, growing 11.87% year-on-year. Claims payments increased by 18.7% to €1.3 bn, excluding Romania and Slovenia. Secondary perils continue to pose a stable risk, with event frequency and severity remaining high.
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AUTHOR: Daniela Ghetu – Editorial Director at XPRIMM Insurance Publications. Edited & Fact-checked by Nataly Kramer – Beinsure Media
