Slovakia Insurance Report Q2 2016
BMI View: Slovakia's insurance sector looks to be well positioned for growth over the next few years as theeconomy is likely to be among the best performing in the EU. Growth in household wealth and disposableincomes should drive demand for life insurance products in particular, as consumers have money to spendon pension and retirement income products. From a relatively low base, life underwriting should grow byaround 6% a year through the forecast period, making it one of the better performing markets in theCentral and Eastern European region. The sector's growth prospects will attract the attention of foreigninvestors and new entrants who may be looking to take advantage of a relatively fragmented competitivelandscape. Growth in the non-life segment will be more modest, due in large part to slower growth in thecore property and motor vehicle lines. However, high levels of consumer spending will aid the developmentof smaller, non-core lines.
Key Updates and Forecasts
We have adjusted our life insurance forecasts for this quarter and now expect premiums to grow by 4.7%in EUR terms in 2016 to EUR1.3bn. Premiums will grow by an average of 5.9% a year over the mediumterm through to 2020.
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