FRANKFURT - Rating-Agentur Expert RA GmbH (RAEX) has completed its first Central and Eastern Europe insurance industry research covering Hungary, Czech Republic, Slovakia, Slovenia, Latvia, Estonia, Lithuania, Poland and Belarus.
Overall, the region’s insurance markets development is expected to continue; however, RAEX anticipate that it will remain hindered by the countries’ high exposure to external factors and the still low awareness about insurance and its products. The industries will be supported by technological advancement i.e. digitalization, as well as risk position improvement of most insurers, as a result of Solvency II.
Estonia: The life insurance sector remains subdued, as its Baltic peers, evidenced by a market density of only USD 83,6. Despite the state of the financial market, and long-term investment tax break removal, agency expect continued growth in the sector. The non-life sector GWPs grew by 11,1% y-o-y in 2017 and are expected to grow further in the mid-term. The sector is anticipated to post positive profit figures given the combination of a high market concertation (top-5 companies accounted for more than 85% of non-life sector’s GWP in 2017) and solid market outlooks for the top insurers.