CEE is where VIG’s growth story takes shape

Central and Eastern Europe (CEE) is VIG’s home ground for long-term insurance growth. The region combines economic convergence, rising household incomes, low insurance density and various stages of market development.

A varied region

Diversified markets, shared growth potential

CEE is not a single market. It is a heterogeneous region of economies with different income levels, regulatory environments, public welfare systems and stages of insurance market development. Plurality and diversification are defining features of VIG’s regional footprint.

VIG’s leading presence across CEE enables it to participate in the region’s long-term growth and to take advantage of the different developments of the individual markets.

Illustration: Several people painting a map of Europe — © VIG

VIG's regional footprint

Convergence and insurance spending

CEE economies continue to catch up

Many CEE economies have made considerable progress in economic convergence over recent decades. GDP per capita in purchasing power parity terms has increased substantially in several markets, narrowing the prosperity gap to Western European benchmarks and strengthening the macroeconomic foundation for financial market development.

Looking ahead, IMF forecasts indicate continued real GDP growth above Western European markets. This will also benefit the development of the insurance markets.

Insurance expenditure remains low by European standards

Despite economic convergence, insurance spending per capita remains below Western European levels in many CEE markets. Low insurance density is not an automatic growth promise, but it indicates substantial long-term headroom where rising incomes, deeper financial markets and stronger risk literacy can convert potential demand into actual insurance uptake.

GDP per capita, PPP (constant 2021 international $), 1990-2024

Insurance density 2025 (premiums per capita, in EUR)

Product demand development path

Rising prosperity triggers insurance needs

As households and businesses become wealthier, insurance needs typically evolve from mandatory and basic protection towards asset protection, personal responsibility, long-term savings, health and quality-of-life protection. This sequence is indicative, not mechanical. Regulation, public welfare systems, tax incentives and trust can accelerate, delay or rearrange individual stages.

Rising household incomes increase purchasing power and savings capacity. This expands the addressable market for insurance. Over time, more comprehensive products along the product demand development path become attractive to customers. Different income levels and uneven income distribution across CEE require a broad portfolio to target growth and to manage risk.

Five stages of insurance demand development

Cover essential risks

Protect assets

Protect loved ones and personal responsibilities

Build and grow wealth

Secure health and quality of life

Risk literacy as a key factor

Growth potential needs activation

Insurance penetration is shaped by economic factors, but also by risk perception, insurance behaviour and attitudes towards social and individual responsibility. Low risk literacy and unrealistic expectations of public support can limit insurance uptake. Through advisory services and sales, alongside a broad local market presence, VIG lays the foundations for promoting personal responsibility and risk literacy among the population, and thereby developing demand.

Risk awareness

Customers need to be aware and understand personal and financial risks before they insure them.

Trust and advice

Insurance uptake depends on confidence in insurers, trusted advice and clear, easy-to-understand products.

Customer access

A variety of sales channels are used to target and serve different customer segments.

Local adaptation

Products and sales approaches reflect local income levels, risk needs, regulation and customer expectations.

Turning potential into revenue

VIG’s model fits the region

What CEE requires

Strong market positions
Local trust and local adaptation
Advisory capabilities and distribution reach
Product breadth
Efficient local execution

What VIG brings

Leading insurance group in CEE
Multi-brand approach, market-specific solutions
Broad distribution network
Multi-line portfolio across P&C, Life and Health
Local autonomy combined with group-wide capabilities

VIG is well-positioned to benefit

Turning CEE’s growth potential into insurance revenue requires strong local positions, trusted brands, broad distribution and the ability to serve different customer needs across markets and stages of financial maturity. VIG’s decentralised business model is designed to address these local differences while lifting synergy potential.