The Main Weakness of Croatia's Insurance Sector is the Small Size of the Life Segment

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c88806) has announced the
addition of Croatia Insurance Report Q1 2008 to their offering.

The Croatia Insurance Report provides independent forecasts and
competitive intelligence on Croatia's insurance industry.

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.

Content Outline:

The Sector At A Glance

Table: Overview Of Croatia's Insurance Sector

Key Insights On The Insurance Sector Of Croatia

SWOT Analysis

Croatia Industry SWOT

Key Features Of This Report

Latest News

Projections And Forecasts

Table: Premiums - Historical Data And Forecasts, 2006-2012

Projections And Drivers Of Growth

Table: Growth Drivers

Country Outlook

Macroeconomic Update

Table: Croatia - Economic Activity

Country Update

Insurance Business Environment Rating

Table: Croatia - Insurance Business Environment Indicators

Table: Central And Eastern Europe Insurance Business Environment
Rankings

Regional Context

Table: Non-Life Premiums In A Regional Context, 2007

Table: Life Premiums In A Regional Context, 2007

Table: Comparison Of Major Lines As % Of Non-Life Premiums, 2006

Analysis Of Competitive Conditions

Croatia - Non-Life Segment

Table: Presence Of Cross-Border Insurers, Non-Life, Central And
Eastern Europe

Croatia - Life Segment

Table: Presence Of Cross-Border Insurers, Life, Central And
Eastern Europe

Methodology

Basis Of Projections

Insurance Business Environment Rating

Table: Insurance Business Environment Indicators And Rationale

Table: Weighting Of Indicators

For more information visit
http://www.researchandmarkets.com/reports/c88806

Research and Markets
Laura Wood, Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com

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