The long-term growth and catch-up potential of the CEE region can be seen in its insurance density. Insurance density indicates the average amount each inhabitant of a country spends each year for insurance services. The CEE countries, for example, recorded an average insurance density of USD 273 in 2007, versus an average of USD 3,668 for the EU-15 countries.

Insurance density in the non-life insurance segment is currently USD 164 for the CEE region and USD 1,292 for the EU-15 countries, which means that current insurance density for the CEE region is approximately one-eighth of the Western European level in this segment.

Insurance density in the life insurance segment is currently USD 109 for the CEE region and USD 2,376 for the EU-15 countries. These figures clearly show that the CEE region has great growth and catch-up potential in both the life and non-life insurance segments.

Economic area with a future

Central and Eastern Europe is an economic area with a future. Due to the region’s long-term growth potential, its markets, despite the current turbulence, are still growing more strongly than those in Western Europe, as demand for insurance services will continue to rise in the future. In particular, insurance segments such as motor vehicle liability insurance, in which the Vienna Insurance Group is strongly positioned in all CEE countries, are viewed as relatively crisis-resistant. Over the longer term, the Vienna Insurance Group, given its broad geographic base and leading position in the region, will also continue to benefit especially well from the high growth and catch-up potential offered by the CEE region.