Nexhat MIFTARI: Taking into consideration the first half of 2014 (1H 2014), the performance of Kosovo insurance industry was relatively sound. In 1H2014, the Gross Written Premium (GWP) was EUR 40.4 million or 0.50 % lower than the GWP for 2013 during the same period. In this regard, some of the insurance companies have recorded a considerable decrease in the premium, whereas few others have seen an increase in the level of premium. Based on the results of mid 2014, as well as comparing them with results from previous periods, the level of premium at the end of 2014 are expected to be approximately similar, or slightly higher, from the level of premium of previous year - 2013.
XPRIMM: What were the most challenging issues for the local insurers in the first part of the current year?
N.M.: The most challenging issues for the insurers, during the whole of 2014, are considered to be the legal issues. Regarding this matter, the CBK is in the process of reviewing the insurance regulatory framework, where as part of it the General Insurance Law was recently drafted and submitted to the Kosovo Assembly for approval. The enforcement of the law in question will entail the review of secondary legislation (by-laws) for compliance.
XPRIMM: What is currently the distribution structure on your market? How relevant is the role played by the insurance brokers?
N.M.: In general, the distribution structure in Kosovo is mainly concentrated within the insurance companies themselves where insurance products are sold by agents working for the insurance companies. Moreover, the insurance companies also have agreements for selling insurance products with insurance brokers, even though the percentages of their sales is much lower than of the insurance companies agents.
XPRIMM: Which are the most important insurable natural risks to which your country has a significant exposure? Which is the household insurance coverage degree?
N.M.: Currently, Kosovo insurance market is dominated by the compulsory insurance - motor third party liability (MTPL). Based on the CBK statistics from the first half of 2014, the MPTL encompasses approximately 55% of the whole insurance portfolio, although voluntary products such as health insurance, property, guaranties etc. have been recording significant increase during the last few years. Household insurance as a voluntary product is also in a continuous increase.
XPRIMM: Is there in place a national risks mitigation programme in your country? If positive, please explain its main features.
N.M.: In order to have safety and stability concerning the underwriting risks by Insurance Companies, the CBK has set limitations in this area. Based on the CBK insurance legal framework in force, the maximum risk retention per risk (occurrence) of the insurance companies is 10% of the chartered capital of EUR 3 million.
XPRIMM: Please give us your comments on the agricultural insurance development in your country.
N.M.: Agricultural insurance is not developed in our country, since this product it's not offered by our insurance companies.
XPRIMM: Is there any type of state subsidy for agricultural insurance?
N.M.: No, there is no such thing, even though there were efforts made to achieve progress in this area.