MTPL markets in CEE

Since the collapse of the Iron Curtain in the late 1980s and early 1990s, Central-Eastern European (CEEs) countries have liberalised their political systems and embraced free-market economies. Growing societal wealth has led to their increased use of motor vehicles, boosting the sizes of motor third-party liability (MTPL) markets. In this note, we analyse those markets in Poland, Hungary, Czech Republic and Slovakia, which are seeing higher bodily injury claim costs and increased presence of more expensive cars, leading to higher property damage claim costs. Our discussion includes:

• Market concentration and size
• Cost of insurance
• Profitability and pricing
• COVID-19 impact