The 5th and most ambitious enlargement of the European Union is already a fact. The 10 new Member States (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia) will effectively join the Union in 2004, for the new parliamentary elections.

The benefits of enlarging the Union are numerous and convincing. They have a political, an economic and a cultural dimension. The enlarged Union will constitute a zone of peace, stability and prosperity. The extra 100million people are expected to boost economic growth and create jobs in both old and new Member States. This would improve the quality of life for citizens (e.g. protection of the environment, fight against crime, drugs and illegal immigration). Finally, by extending the frontiers of the European Union the role of the Union in world affairs would strengthen as well.

Though the insurance market penetration in the enlargement countries is relatively low at the moment, these countries should provide plenty of opportunities for insurers (and consequently reinsurers) in the near future.