Increase in competition as long standing monopoly declines

Despite generally good claims experience, rates were kept at a conservative level by the anti-competitive structure of the market, which is characterised by a high degree of concentration and the widespread use of reciprocal coinsurance. These factors have allowed insurers to make substantial underwriting profits every year since 2003, an achievement which has not only attracted new competitors into the marketplace, but has also unleashed an increasingly aggressive battle for market share

There were 34 domestic insurance companies in the Czech Republic at the end of 2007, of which three were life, 16 non-life and 15 composite. There was also one branch of a non-EU insurer and 14 non-life or composite branches of EU insurers set up under “freedom of establishment” legislation.