BMI's Executive Summary for the Croatia Insurance Report

[TOP]

This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

Croatia's IBER is 56.3. Relative to other countries in Central and Eastern Europe (CEE), it is a moderately attractive insurance market for foreign insurers. Within the region, Croatia stands out for its strong regulatory framework. The economic outlook is germane. Government policies are likely to remain constant over the long-term. However, the IBER is held back by the underdevelopment of the life segment, the bureaucracy and external risk.

Over the forecast period, we anticipate that non-life premiums will grow by 16% annually in local currency terms and by 16% in US dollar terms. Life premiums are expected to increase by 18% annually in local currency terms and by 18% in US dollar terms. The key drivers of growth in the non-life segment in 2007-2012 are the anticipated rise in nominal GDP from around US$48bn to US$71bn and an expected increase in non-life penetration from 2.78% of GDP to 4.00%. The key driver of growth in the life segment is the envisaged rise in life density from US$117 per capita in 2007 to US$270 per capita in 2012. Croatia's total population is declining.

The competitive landscape, in both the non-life and the life segment, is fragmented. Neither segment is particularly open to participation by foreign groups, and there exist clear barriers to entry into the market as it is still largely controlled by the state. As the market is underdeveloped, however, Croatia may still attract some foreign interest.

Croatia's non-life segment has grown significantly over the last two years. It is currently among the top in its region. Like most other countries in the region, more than half of this is accounted for by motor insurance. However, the market is still primarily local and somewhat under-developed, meaning that there may be room for cross-border groups to move in.

The main weakness of Croatia's insurance sector is the small size of the life segment. Despite the several cross-border companies present, it is apparent that the market is not yet a strong one, though its score is about average for Eastern Europe in the IBER breakdown.

Contents of the Croatia Insurance Report

[TOP]

Chapter 1 - The Sector At A Glance

Table: Croatia Overview

Key Features Of This Report And Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Croatia Evolution of the Insurance Sector (in millions of currency specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: Croatia BMI Projections (in millions of currency specified)

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: Croatia - Economic Activity

Chapter 6 - Country Update

Political Risk Closing One Chapter

Economic Risk Deficit Reduction

Business Environment Slow Progress

Chapter 7 - Analysis of Competitive Conditions

Table: Non-Life Segment Rankings of Markets

Table: Presence of Non-Life Cross-Border Insurers

Table: Selected Local Non-Life Insurers

Country Overview Croatia Life Segment

Table: Life Segment Rankings of Markets

Table: Presence of Life Cross-Border Insurers

Table: Selected Local Life Insurers

Whos who in the Central and Eastern European region?

Chapter 8 - Regional Context

Table: Regional Context - premiums

Table: Regional Context Total premiums

Chapter 9 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 10 - Appendix

Table: Latest estimates/ actual figures for 2005

Table: Latest estimates for 2010

Table: Latest estimates for 2005-2010

Competitive Landscape for Europe Insurance Reports: Sample of
    Companies Ranked

[TOP]

A cross-border overview of key players and their insurance market share across Europe. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

[TOP]

BMI's European Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports