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.