Borislav BOGOEV: For the first half of 2011, the gross premiums written amounted to EUR 416.5 million compared to EUR 414.5 million for the first half of 2010; thus, an increase of 0.5% is registered on annual basis.
In the structure of gross premiums written, non-life insurance had the dominant share of 84.6% and amounted to EUR 352.2 million, which represented a decrease of 0.2% on annual basis.
xprimm.com: On non-life insurance, which are the most dominant classes?
B.B.: A major share of 71.6% in the non-life insurance portfolio structure was occupied by the motor vehicle insurance (Land vehicles and Motor vehicle liability), followed by property insurance (Fire and natural forces and Other damage to property) - 17,7%.
For the first six months of 2011 the gross premiums written on Motor vehicle liability insurance amounted to EUR 138.2 million compared to EUR 120.2 million for the same period of 2010. The recorded annual growth is 15%. For the higher premium income of this type of insurance contributed the increase of the average premium of annual contracts - for the first half of 2011 it was EUR 103.8 compared to EUR 89 for the same period of 2010.
Gross premium income generated from Land vehicles insurance was EUR 113.2 million and recorded an annual decline of 12%.
xprimm.com: But the most profitable?
B.B.: The property insurance (Fire and natural forces and Other damage to property) recorded an annual decline of 7%. Nevertheless. these types of insurances are the most profitable as at 30.06.2011.
xprimm.com: How was the dynamic of life insurance? Did it emerge from the crisis?
B.B.: In the first half of 2011 the gross premiums written by life insurers increased, however at a slower pace compared to the pre-crisis levels. The recorded gross premiums written were EUR 64.3 million - an increase of 4.2% is registered on an annual basis.
A dominant share in life insurance market had the traditional Life insurance and annuities (74%). The most dynamic life class of insurance is Unit-linked insurance. For the first six months of 2011, the gross premium income was EUR 5.5 million and a reported increase of 111% on an annual basis.
xprimm.com: Overall, what has influenced the dynamic of the market?
B.B.: Some of the main factors influencing the development of the insurance sector were: the growth in the sales of new motor vehicles for the first half of 2011 contributed for the smaller pace of decline of Land vehicles insurances and the relatively weak activity in lending to households affected property insurance
.
xprimm.com: Have you witnessed any marketing strategies changes during this period?
B.B.: Even if the companies witnessed many challenges during this period of crisis, major changes in the insurers' marketing strategies were not observed.
xprimm.com: Were there significant changes (decisions/legislation) in the first half of 2011?
B.B.: The Law on the insurance premiums tax has been enforced since 01.01.2011. The Law imposes a premium tax in amount of 2% over the insurance premiums for certain classes of non-life insurance.
In the first half of 2011 was amended the Ordinance No. 42 of 03.11.2010 on the building up and maintenance of an information system for risk assessment, management and control, including for the issuance of policies under the compulsory MTPL insurance- the amendment introduces electronic issue of compulsory insurance contracts and adaptation of information systems of insurers.
xprimm.com: What are your expectations for the end of 2011?
B.B.: For 2011 we expect positive growth of gross premiums written, even though at much lower rates compared to these recorded before the crisis.
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