XPRIMM: How do you comment on the results recorded by your national insurance market in 1H2014? How do you assess the end year results for 2014, taking into consideration the midyear accomplishments?
Mateja LAMOVSEK: As expected, the decline in gross written premium is still noticeable and we can expect this trend till the end of this year. This is the result of negative economic growth and unfavorable economic environment in the country.

XPRIMM: Which were the most challenging issues for the local insurers in the first part of the current year?
M.L.: Slovenian insurance companies are preparing for Solvency II. According to this, they are adjusting their business and organization to new requirements. Besides there is unfavorable economic environment, which was additionally affected in February by a huge natural catastrophe (total damage is over EUR 400 million, half of this in the woods, which are mostly uninsured).

XPRIMM: What is currently the distribution structure on your market? How relevant is the role played by the insurance brokers?
M.L.: The distribution structure didn't change much over the years. Most of the insurance is sold by insurance agents, who generated two thirds of total insurance premiums in 2013. Sales over the counter generated about 22% of premiums, while insurance brokers' share was less than 5% of last year's premiums. Brokers generate the majority of premiums via sales of fire and other damage to property insurance and other liability insurance. But they play an important role at railway rolling stock insurance, which is primarily sold by brokers.

XPRIMM: Which are the most important insurable natural risks to which your country has a significant exposure? Which is the household insurance coverage degree?
M.L.: Flood is one of the most frequent natural disasters in the last decade that affects the habitants and economy. Slovenia is also exposed to earthquake. The Slovenian Insurance Association has no info about the coverage degree of specific insurance.

XPRIMM: Is there in place a national risks mitigation program in your country? If so, please explain its main features.
M.L.: There is a law about covering the damage of natural catastrophes - The state intervenes in the case of huge natural disasters whose damage exceeds 0.3 per mile of planned state budget income. The state is also preparing some prevention programs for the protection against natural disasters.

XPRIMM: Please give us your comments on the agricultural insurance development in your country.
M.L.: Agricultural insurance is divided into crops and fruit insurance and livestock insurance. The most challenging risk for crops and fruit insurance is hail (over 90% of all damage in 2013) which occurs almost every year. Common are also spring frost and storm. The estimated insurance penetration is 40%.

XPRIMM: Is there any type of state subsidy for agricultural insurance?
M.L.: The state subsidies 40% of premiums for crops and fruit insurance and 30% of premiums for livestock insurance if it covers the risks stipulated in special government regulation.