The 1H2013 results of the Montenegrin insurance market confirmed the trends already visible by the end of 2012 and in the first quarter of 2013 - an obviously slowing growth trend on the non-life insurance segment together with a continuously improving dynamic on the life insurance lines. Thus, the overall GWP volume amounted to EUR 35.64 million, 4.71% up y-o-y, while GWP went up by 11.62% y-o-y for the life insurance segment and by only 3.7% for the non-life business lines.

Thus, GWP for life insurance amounted to EUR 4.89 million, a volume which raised the life insurance share in the market portfolio by 1pp, to 13.71. However, as Boris SABAN, Executive Director of the National Bureau of Montenegro told XPRIMM, "If it is true that life insurance has recorded growth in last few years, it is also true that in reality, life insurance still represents only about 13% of the total gross premiums. We expect further growth of the life business on the market, but this cannot be achieved effectively without changes in regulations, which will encourage people to invest in life insurance."

On the non-life side, the total GWP amounted to EUR 30.75 million. The largest share of the non-life business belongs to motor insurance that accounts for almost 52% of the GWP on this segment. The motor hull class remained on a decreasing trend, apparently even in a worst shape than in 2012. Thus, after a 5% decrease during 2012, in 1Q2013 the motor hull class experienced an over 13% decrease y-o-y, followed by the somehow improved result of 1H2013, when the decrease was of "only" 9.7%. However, motor hull insurance accounts for only about 15% of the motor insurance business in Montenegro, the main GWP volume coming from the MTPL class.

Property insurance recorded a positive evolution, with an almost 13% growth in premiums in 1H2013. Still, the market continues to face a very scarce demand for property insurance, being obvious that "people have to be encouraged to buy this insurance coverage," as SABAN said. Cat insurance is, in this respect, still a very sensitive issue, especially considering that Montenegro has a certain exposure to the flood risk and a limited exposure to the earthquake risk. Currently, the Ministry of Agriculture and Lovcen insurance, a local insurance company, have signed an agreement concerning premiums' subsidizing under a special insurance program for farmers which may lead to a further business development in Montenegro, as SABAN told xprimm.

The full market analysis article, as well as the full interview with Boris SABAN, Executive Director of the National Bureau of Montenegro, was published in XPRIMM Insurance Report - CEE, Russia & CIS, SE 1H2013. See how you can get a copy.

Access www.xprimm.com and download the 1H2013 Montenegrin insurance market statistics.

Market portfolio:

• Gross written premiums
• Growth rates
  

Market rankings (Total, life and non-life insurance):

• Gross written premiums
• Market shares 
• Growth rates