NORTH MACEDONIA: property insurance remains the largest voluntary insurance class

22 June 2022 — Marina MAGNAVAL
Property insurance remains the largest voluntary insurance class of all non-life classes in the North Macedonian market, followed, for the first time so far, by private health. The largest growth (180%) is in credit insurance, while travel insurance rose by 80% after lifting of anti-Covid restrictions, the ISA (Insurance Supervision Agency) said in its statement.

GWP in non-life insurance reached MKD 2.5 billion (EUR 40.5 million) in the first three months of 2022. The non-life insurance market grew by 10% y-o-y in 1Q, according to official data from the ISA. Almost 307,000 non-life insurance contracts were concluded, which is 11% more than the same period last year. The clients paid MKD 555.6 million (EUR 9 million) for property insurance in the period (-5% y-o-y). Despite the small decline, property insurance remains the largest, or best-selling voluntary insurance class.

Private health insurance continues to be the most popular insurance in terms of premiums collected. For the first three months of this year, 10 non-life insurers concluded almost 8,000 private health insurance contracts. The insured persons paid MKD 225 million (EUR 3.7 million), which is 81% more y-o-y. At the same time the most impressive growth is in the class of credit insurance. Official data show that policyholders paid EUR 121,000 in three months, which is 180% more y-o-y.

Significant growth, with abolition of anti-covid measures, is also observed in travel insurance. Compared to last year, sales of travel insurance in 1Q grew by 80% to MKD 30.3 million (EUR 500,000). Liability insurance of vehicle owners remains the highest class. Total value of policies, sold in the first three months, exceeded MKD 1 billion (EUR 17 million) and increased by 5%.

The value of all non-life paid claims in the period January - March was 6% higher compared to the same period last year. 11 non-life insurance companies paid MKD 978 million (EUR 15.9 million) for damages in the first three months of this year. Total number of claims was almost 23,000, which is 30% more than the same period in 2021, according to official data from the ISA.

As expected, the largest insurance class has the largest share in the structure of paid claims - MTPL. The value of the paid claims was MKD 473 million (EUR 7.7 million) and that is 48% of all damages paid in this period. Compared to the same period last year, the value of claims paid increased by 4%.

The largest increase in the paid claims was again in private health insurance - insurers paid MKD 84.5 million (EUR 1.4 million) for medical examinations and treatment in the period, which is 94% more y-o-y and this is the fastest growing insurance product since the covid crisis started two years ago.

It's worth noting the growth of paid claims in the largest voluntary insurance class - property insurance. By the end of March this year, almost 1,800 claims worth MKD 116 million (EUR 1.9 million) were paid, which is 17% more y-o-y.

Travel insurance had the largest relative increase in the value of claims paid. It is obvious that lifting of the restrictions caused by the pandemic encouraged more insured persons to travel abroad. In the first three months, insurance companies paid almost 2.5 times more for travel insurance. Paid claims value reached MKD 13.7 million (EUR 223,000), the ISA said.



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