Foreign insurers behind trend towards consolidation

The country’s largest insurer Ceska Pojistovna is at the centre of a deal between Generali and Dutch group PPF

The development of the Czech economy as well as its insurance market has progressed without spectacular triumphs or pitfalls since the country achieved full membership status in May 2004. Gross domestic product growth in 2007 is forecast at 6% but the increase in 2008 is expected to be weaker at between 4% and 4.5%. High wage demands and increased energy prices are also expected to push up inflation to the 5%-6% range according to the forecast of the Economic Chamber.