CEE region with growth potential
Central and Eastern Europe is an economic area with a future. The Vienna Insurance Group has operations in Central and Eastern Europe, a region that offers the insurance industry significant opportunities for long-term growth.
VIG’s expansion into the CEE countries is based on a business potential primarily rooted in two factors:
- Insurance density (per capita premium payments) in Central and Eastern Europe is considerably below the Western European level.
- Growth rates of insurance markets in Central and Eastern Europe are significantly higher than those in Western Europe.
Economic region with potential for the future
Central and Eastern Europe remains an economic region with enormous potential for the future. The rising demand for life insurance products is illustrated by the conintued growth of the insurance sector in CEE countries. The Vienna Insurance Group believes that the growth potential of this region will continue over the long term. Given its broad geographic representation and favoured position in Central and Eastern Europe, Vienna Insurance Group stands to profit significantly from the on-going process of convergence.
Top positions in the region
In its core markets, the Vienna Insurance Group is both number one overall and number one in the life and non-life insurance segments. Each individual Group company and every one of its approximately 23,000 employees has contributed to this major success. Hence, the Vienna Insurance Group is exploiting the growth potential in the CEE region in an optimal manner. The challenge of maintaining and further expanding this position as number 1, is a driving force and an objective for the future.
Expansion of the insurance business in CEE
The growth potential in the CEE region opens up many opportunities for development of the company, especially opportunities for longer-term development. The Vienna Insurance Group has expanded its involvement in the region step by step over the past years. In the beginning, the main focus was on offering insurance services in the motor vehicle sector. In addition to motor vehicle insurance, household and homeowner’s insurance was also in strong demand.
In response to the increasing level of prosperity, the Vienna Insurance Group began to offer savings and investment products in the form of life insurance in addition to its basic policies. With this in mind, the Vienna Insurance Group strengthened its presence in the markets of the CEE countries by acquiring the s Insurance Group, specialising in life insurance, and thereby added to the strength of its existing distribution channels.
Around 50% of Group premiums come from CEE
The Vienna Insurance Group is optimally positioned to participate in the increased need for insurance accompanying the rising standard of living in the countries of the CEE region. In 2015, the region accounted for around 50% of Group premiums.