STATISTICS:

Klime POPOSKI
PhD, President of the Council of Experts
Insurance Supervisory Agency of Macedonia

XPRIMM: How would you generally comment on the insurance market's evolution during the first part of 2017?
Klime POPOSKI:
In conditions of political risks and corrections of the GDP growth, insurance companies successfully coped and marked a positive trend in the GWP. Non-life insurance companies realized GWP EUR 64.48 million, which is an increase of 1.23% over the previous year (62.7 million), while life insurance companies realized GWP pf EUR 10.47 million, an increase of 16.56% over the previous year (8.98 million).

XPRIMM: Are there any significant changes in your market's structure? (new players, in course or expected M&As, players leaving the market etc.)
Klime POPOSKI:
As of the second quarter of 2017, we have 2 new insurance brokerage companies on the market (a total of 35), an unchanged number of insurance agencies (a total of 14), and already at the beginning of the third quarter the new insurance company Triglav Life started operating, which is the 5th life insurance company on the market (total 16, 11 non-life). Additionally, the interest for bank insurance continues, so in this period another bank received a license for performing insurance agency activities (a total of 4). Also, during this period, we have announcement for takeover of an insurance company.

XPRIMM: How did motor insurance lines perform in GWP terms? What can you tell us about the motor insurers' profitability? What are the main challenges experienced by this business segment in profitability terms?
Klime POPOSKI:
MTPL line of business (LOB) realized EUR 30.98 million euros and grew by 5.77% over the previous year (29.29 million), while Motor Hull LOB realized EUR 6.29 million and recorded a slight drop of -0.29% (6.31 million).

MTPL LOB is profitable in this period measured through the combined ratio of 90.2% (loss ratio 46.7% + expense ratio 43.4%). Motor Hull LOB during this period recorded losses measured through the combined ratio of 117.6% (loss ratio 72.7% + expense ratio 45%). This result is also due to the consequences of a hail on the territory of Skopje in June 2017 that caused damages on many vehicles.

The MTPL most pronounced challenge is the trend of increase in the payment of intangible claims obtained in court proceedings. Otherwise, the overall motor insurance is characterized by high operating costs, including high costs for intermediation.

XPRIMM: How do you comment on the Nat Cat insurance covergae degree in your country? Is your government taking action to improve the Nat Cat protection?
Klime POPOSKI:
Luckily, we didn't experience economic damages from heat. In our country, the most emphasized agriculture risks are early spring frosts, floods and hail. Unfortunately, due to the still low insurance rate, we illustrate the size of the damages from the previous two years, which are estimated by the state authorities. Namely, in the course of 2015, the floods in 44 municipalities in the country stroking the agricultural production, with damages estimated up to EUR 13.6 million. In the past 2016, damages are estimated at around EUR 27 million. We still do not have official information for 2017 damages, except for the information that early spring frosts caused damages in 32 municipalities to about 13,408 agricultural holdings. And as a result of heavy rain, electric discharges followed by a strong hail resulted in a complete destruction of agricultural crops in 4 municipalities in the country. The state has a program that partially supports the consequences of the elementary disasters.

The insurance against catastrophic risks is only marginally covered by voluntary insurance offered by insurance companies, including the products of Europe Re.

For this purpose, the Government of the Republic of Macedonia, in cooperation with the World Bank Project (SEEC CRIF), are considering options for introducing certain mandatory forms of insurance against catastrophic risks for households, as well as insurance of the state budget regarding the payments coming from the program supporting the consequences of the elementary disasters.

XPRIMM: Please describe in short the insurance brokers' business status in your country.
Klime POPOSKI:
The life insurance companies' most important distribution channel is the insurance brokerage (IBC) with 50.16%, with the dominant participation of one IBC. However, there is a downward trend in the share of the IBC as a result of developing direct sales and increasing participation of the bank insurance. The non-life insurance dominates the direct sales channel with 56.91%, while the insurance brokerage companies participate with 21.12%, mostly in the MTPL business. The insurance agency companies participate with 10% and equally sale MTPL and property insurance.

XPRIMM: Considering the market results recorded in the first half of the year, what are your expectations for the year end?
Klime POPOSKI:
I expect that the positive trend in the both life and non-life insurance will continue, with an emphasized trend of increasing the Unit-link life insurance and reducing the relative participation of IBC in the intermediation.

Related articles

photodune-3834701-laughing-girl-xs

Hans FEYENDirectorHead Agriculture RI Centre & Europe, Swiss Re

Technology and digitization are the most important drivers to close the protection gap for agriculture in developing countries. As in developing countries agriculture is often small-scale, it needs technology to design and sell insurance products in an efficient way.

2017-10-05
photodune-3834701-laughing-girl-xs

Petar-Pierre MATEKPresident of the BoardHANFA

Overall, we can say that there are signs of recovery on the Croatian insurance market. Premium growth in 1H2017 was 2.7% in total (3.8% in non-life and 0.4% in life insurance) in comparison with the same period last year.

2017-09-28
photodune-3834701-laughing-girl-xs

Cornel COCA CONSTANTINESCUVice-PresidentASF - the Financial Supervisory Authority, Romania

The Romanian insurance market went through a rough period, marked by several changes in legislation, especially on the MTPL segment, a field of business which is now, for the time time, regulated by a dedicated law. Although still contested in some aspects, the new Law sets up the premises for a better predictability, fair pricing ane better consumer protection.

2017-09-14
photodune-3834701-laughing-girl-xs

Andrea KEENANSenior Managing Director - Industry Relations, A.M.Best USAVice Chair, Microinsurance Network

Microinsurance helps with financial education, family planning, development of small enterprises and maintenance of health, and the products are typically designed to address the specific needs of any given population.  A virtuous cycle develops as this produces income smoothing, larger planning horizons and the development of financial wellbeing.  It is challenging because, to be affordable, scale must be achieved.

2017-07-20
photodune-3834701-laughing-girl-xs

Nicola RAUTMANNMarket Executive Austria & CEE, Swiss ReChristian ENGELNMarket Head Russia & CIS, Swiss Re

We currently expect the immediate impact of digitalization to be on sales, with an increased ability to reach clients and offer cross-selling of products.  Data could be pre-filled, which is likely to increase sales conversions. The full benefits of digitalization however will depend on the extent to which data owners are able to make use of their data, including sharing it with other parties.

2017-07-12

ON THE MOVE

Swiss Re appoints new CFO and proposes new members to the BoD

Swiss Re announced that John DACEY, currently Group Chief Strategy Officer, is appointed Group Chief Financial Officer, effective 1 April 2018. He succeeds to David COLE, who will step down to pursue a non-executive career, while remaining a board member of several Swiss Re subsidiaries.

Piotr OZAREK is the PZU's first Ombudsman

Piotr OZAREK was appointed to perform the newly established function within PZU, as the first client's spokesperson of the insurer. His main task will be of helping in the most difficult and complicated cases in which PZU's clients are not satisfied with the solution.

Desmond BOHAN joins JLT Re as Senior Vice President

JLT Re, part of the global provider of reinsurance broking and consultancy, has appointed Desmond BOHAN as Senior Vice President in Stamford, Connecticut. He will focus on the continued expansion and development of JLT Re's Program practice in North America.

TOP EVENT

"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.

22.11.2017

photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

14.11.2017

photodune-3834701-laughing-girl-xs

Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

09.11.2017

photodune-3834701-laughing-girl-xs

The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

26.10.2017

Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

25.10.2017

Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.

24.10.2017

See all