MONTENEGRO: politicians want a national insurer to weigh down the Slovene players

9 November 2011 — Daniela GHETU
muntenegruDuring a recent session of the Montenegrin Committee for Economy, Finance and Budget, a representative of the main opposition party, the Socialist People's Party (SNP), Dragoslav SCEKIC said that Montenegro should form a national insurance house and prevent the outflow of money through other insurance companies. In his view, "there is monopoly in this sector, which is controlled by Slovenian insurance companies, which is the reason for the outflow of capital".

According to local press, SCEKIC announced that his SNP will submit an initiative for founding a national insurance company. In response, Branko VUJOVIC, President of the council of the Insurance Supervision Agency, said that the necessity of establishing a national insurance and reinsurance house should be decided after a proper analysis, by a special commission.

According to the Insurance Supervision Agency registries and reports, the total foreign capital in the local insurance market amounts about EUR 39 million, representing aprox. 85.5% of the aggregated share capital of the insurance companies registered in Montenegro. The Slovenian groups TRIGLAV, owning 94.95% of LOVCEN Insurance and SAVA, the 100% owner of SAVA Montenegro, account for about 41% of the foreign capital, or ~34% of the total insurance market capital. Moreover, LOVCEN Insurance and SAVA Montenegro are the non-life market leaders.

Suspicion that the foreign owned insurance companies are channelling a massive capital outflow is not new in the CEE region. Usually, beside the dividends paid to the shareholders, the reinsurance activity is seen more as a way of capital repatriation than as a protection purchase.

More news and statistics about Montenegrin insurance market.

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