XPRIMM: How would you characterize the local insurance market's evolution in 2013?
Mateja LAMOVSEK: 2013 started the same as in previous years - negative growth of life insurance premium, positive growth in non-life insurance. But after a few months the non-life insurance premium also began to drop, the result being a negative growth of total premiums. Otherwise, in October 2013 two insurance companies merged - Adriatic Slovenica and KD Zivljenje (KD Life). Also, insurance companies were preparing on a new legislation regarding Solvency II.

XPRIMM: Which were the most important changes/trends, both - in the economy and insurance industry - in 2013?
M.L.: In 2013 the market growth was negative for the first time in the last two decades. It was for the first time since 2008 that premium has fallen under EUR 2 billion. This is the result of the crisis in Slovenian economy, which has been already lasting for the last five years. In economy crisis the unemployment grew very much. Because of that the life insurance started to fall first, but because of the leading non-life insurance the market growth was still positive until 2013, when non-life insurance premium also decreased.

XPRIMM: For the local insurance industry, the year 2014 started better or worse than previous years (2008-2013)? Why?
M.L.: January 2014 has recorded the highest premium volume since 2008. After an optimistic start, February already followed with negative premium growth. The crisis in the economy still lasts. A lot of companies have problems with payments and bankruptcy was a regular phenomenon last year. There was also a high level of unemployment, so people started cutting their costs first in life, now also in non-life insurance.

XPRIMM: Are there any major changes to be made in the near future that will target the insurance industry?
M.L.: The insurance regulation is changing because of Solvency II.

XPRIMM: What are your expectations for the end of 2014?
M.L.: According to the results of the first quarter 2014 and the premium development of last year we cannot expect better results.