Český pojistný trh před vstupem do Evropské unie
CZECH INSURANCE MARKET BEFORE ENTERING THE EUROPEAN UNION

Summary/Abstract: Insurance market works on a principle of collection and distribution of finances, especially the reserves. They are created for reimbursement of casual (accidental) needs. Insurance market is influenced by: state through legal rules and supervision in insurance, insurers (insurance companies), clients, insurance brokers, reinsurers and various consul-tancy firms. Also the associations of insurance companies play an important function, they significantly influence through their activity the behavior of member insurance companies.According to subject of insurer's activity we can divide insurance market in two rela-tively separate segments: supply and demand of insurance and reinsurance (relevant insurance market) and investment of temporarily free finances (investment insurance market).It is not possible to evaluate the development of insurance market without checking the development of its indicators. In the Czech insurance industry, the system of indica-tors of insurance market standard is not fully defined. The choice of insurance market indicators is directed such way to enable a complex evaluation. We can mention these basic indicators: premium written, insurance benefit, loss experience, insurance market cover and concentration of insurance market and other indicators.Insurance market in Europe, as well as in the Czech Republic, came in last years through distinctive restructuring changes. An increase of competition developed espe-cially by gradual liberalization of market after ratification of key European directives was the reason. The most important factor for gradual convergence of Czech and Euro-pean insurance industry and for classification of development of this process is and in future will be the sphere of legislation. Although the process of insurance legislation convergence is almost over, in the Czech Republic there will be necessary to make several steps supposing a creation of new act on insurance or novel of current act, new act on insurance policy, act on insuran-ce brokers, insurance consultants and independent loss adjusters, novel of act on motor third party insurance and other arrangements related with insurance industry (bankruptcy and discharge, tax rules, economic competition).In actual period, the Czech Republic has still to solve several unsettled problems of pragmatic character. We can mention especially: low share of life assurance, low insu-rance market cover, high concentration of insurance market, persistance of business liability insurance (it should be transformed to contractual obliged insurance).

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