INSURANCE MARKET IN SLOVAK REPUBLIC AND CZECH REPUBLIC

Background. The insurance market is an important component of the financial market. The insurance sector has great importance for modern society; it is closely linked to the economic performance of the state. The insurance market can be characterized by several indicators: number of insurance companies, gross written premium, claims incurred, insurance penetration, insurance density and others. The aim of the paper is to identify main tendencies in the development of the insurance market in the Slovak and Czech Republic. We chose these countries, because the Slovak and Czech Republic have a long common history. Since May 2004, Slovak and Czech insurance market became part of the single European insurance market. Methods. We used the method of time series analysis, comparison and synthesis in this paper. The method of time series analysis was used to examine the development of selected indicators of the insurance market of the Slovak and Czech Republic. The method of comparison was used to compare the selected indicators of Slovak and Czech insurance market. The method of synthesis was used to draw conclusions. Results. The gross written premiums in the Czech Republic are higher than in Slovakia as a result of the size of the country and its population. In the Slovak Republic the share of life insurance on gross written premiums is higher than in the Czech Republic. The insurance penetration and density are significantly higher in Czech insurance market, but both countries are below the average of the European Union. Conclusions. The Slovak and Czech insurance markets had a common starting base, but the current situation on the insurance markets in Slovakia and the Czech Republic is significantly different. In the Slovak Republic, the life insurance is preferred by the insured ones, while in the Czech Republic the property protection prevails. In both countries the underinsurance of the economy still remains, so in these countries there is a substantial potential for growth.