During the first half of 2013 saw only a slight increase in premiums. Technical premiums amounted to EUR 1.07 billion, most of the 1.3% increase being driven by life insurance. This trend is in accordance with the traditional evolution of the market, as Ivan PODSTUPKA, Policy Advisor of Communications & PR, SLASPO told XPRIMM. Still, a change has occurred as "unit-linked insurance declined, for the first time since 2009. The volume and frequency of surrenders are growing, but the premium production is slowing down." Thus, while GWP for unit-linked products decreased by 4.7%, to EUR 170.93 million, claims paid for this line of business increased by 13.5%, to EUR 65.2 million. Consequently, the weight of UL life insurance in the total portfolio decreased by 1pp, to 16%. "It is really difficult to predict consumers' appetite on products," told us Julia CILLIKOVA, Director of the Regulation and Financial Analyses Department, NBS. The decline in UL sales was surprising as "this type of products was quite well sold in the past. On the other hand, the technical premiums for traditional life insurance, such as insurance until a stipulated age or insurance for death events, increased by about 7% in 1H2013 after two years of continuous diminishing of the business volume," CILLIKOVA pointed out.
The non-life insurance sector recorded a slightly negative trend, with the GWP volume decreasing by 1.45%, to EUR 496.45 million, mostly due to the negative trend recorded once again by the motor insurance lines. "The average premium per contract continued to diminish, while the cost of claims is growing. So the combined ratio in hull insurance reached 113.5%, which is unsustainable," says Ivan PODSTUPKA. Thus, GWP for motor insurance amounted to EUR 271.9 million in total, which represents 4.36% less than in 1H2012. At the same time, claims paid for motor insurance went up by 7.5%.
Far better results were achieved for the property insurance lines, with GWP of EUR 125 million, 1.6% up y-o-y and a decrease in paid claims by 23.4%, to EUR 34.7 million. "Property insurance is showing a great potential for the future period, especially in what concerns real estate insurance, considering that only half of the real estate properties are insured, out of which a large part are underinsured," says SLASPO's representative.
The full market analysis article was published in XPRIMM Insurance Report - CEE, Russia&CIS, SE 1H2013. See how you can get a copy.
Access www.xprimm.com and download the 1H2013 Slovak insurance market statistics.
Market portfolio (according NBS):
- Gross written premiums
- Growth rates
- Total market ranking
- Life insurance ranking
- Unit-linked insurance ranking
- Non-life insurance ranking
- Motor hull insurance ranking
- MTPL insurance ranking