STATISTICS: MACEDONIA,1H2018: improved market profitability, despite higher claims volumes

Macedonian insurers ended 1H2018 with an aggregated GWP volume of EUR 80 million, up 6.7% y-o-y. Most of the market growth came from the non-life insurance segment, namely from MTPL and fire and allied perils insurance lines.

It is worth noting that although the GWP increase was a rather modest one, the market profitability improved at a much higher rate. "In the first half of 2018, the insurance sector made profit before tax in the amount of MKD 250.34 million (~EUR 4.07 million). Compared with the first half of 2017, the profitability of the insurance companies increased by 147.52% (1H2017: MKD 169.70 million; ~EUR 2.75 million),"said Mr. Klime POPOSKI, the head of the Macedonian FSA.

The motor insurance business saw a positive trend, with increasing GWP volumes on both LoBs, Motor Hull, and MTPL. It is worth noting that for the MTPL line, despite claims payments increasing at a significantly higher pace compared with GWP growth (9.12% vs. 6.07%), the market efficiency indicators have improved: "The combined coefficient for MTPL in 1H2018 is 88.13%, compared to 1H2017 when it was 90.09%," explained POPOSKI. Yet, "at this point, there are no signals for the liberalization of the MTPL insurance market," meaning that the most expected, but also most "feared" change in the market to come is still not a matter of strict actuality.

The property insurance lines saw divergent trends: while GWP for fire insurance went up by over 23% y-o-y, the damages to property line volume of premiums has decreased by 1.5% y-o-y. "This year (2018) we had more frequent floods, hailstorms, and early frosts to which agriculture was primarily exposed," said POPOSKI, but, "the insurance sector compensates a very small segment of the catastrophic risks total costs." In fact, although paid claims for property insurance increased by an impressive 77% y-o-y, total claims paid by the Macedonian insurers for these lines of business didn't exceed EUR 3.7 million. Overall, the protection gap remains very large,

As far as the expectations for year end are concerned, POPOSKI said: "I believe that the positive trend will continue and that the insurance sector will grow in both segments of insurance and that the same trend will continue from the first half-year."

Access www.xprimm.com and download the 1H2018 Macedonian insurance market statistics.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

SAVA Re entered the Macedonian pension market

Slovenian SAVA Re announced it got the approval from the Macedonian Agency for Supervision of Fully Funded Pension Insurance (MAPAS) and the required approvals from other competition authorities for the acquisition of NLB Nov penziski fond AD Skopje.

2018-03-15

ON THE MOVE

Peter CLARKE named VP & COO of FAIRFAX

FAIRFAX Financial Holdings Limited announced that Peter CLARKE has been appointed Vice President (VP) and Chief Operating Officer (COO) of FAIRFAX, reporting to FAIRFAX President, Paul RIVETT.

12.02.2019

ERGO Group appoints a Polish manager

Adam ROMAN, board member of Ergo Hestia (Poland), will hold the position of Head of Global P&C of the ERGO group, effective 1 March. His tasks will include supervision over property insurance of the group in the areas of underwriting, actuarial and pricing, as well as reinsurance.

07.02.2019

TOP EVENT

Inclusive Insurance - a creative solution to narrow the protection gap in the emerging markets of the Southeastern Europe

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.

14.02.2019

Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.

14.02.2019

FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.

10.01.2019

See all