STATISTICS: SLOVAKIA, 1H2016: Possible extension of the current 8% tax on MTPL premiums to all facultative non-life insurance lines

Slovak insurers have ended 1H2016 with an overall GWP volume inferior to the previous year's results for the same period. According to the market representatives, given the Slovak market's stability during the recent years, the end year market results should be more or less in line with the 2015 results.

Yet, comparison with the previous year, should be carefully considered as starting January 1st, 2016 Slovak insurers are required to report data according to the Solvency II standards, which in some cases provide for a different classification of the business lines, thus possibly leading to errors.

Another important challenge which needs to be taken into consideration is a recent change in the indirect taxation on the insurance premiums which may significantly affect both insurers and customers. "Unfortunately intention of lawmakers to extend the 8 % MTPL levy to all facultative NON-LIFE insurance lines is real now - it was approved by government on 21 September and it has to be approved by the Parliament until the end of the year. From the beginning of the legislative process we have strongly object to this proposal as it will most probable result in growing prices for clients and decrease of non-life insurance penetration, which is already very low in property insurance for example. We strongly disagree with this additional retroactive levy outside of regular tax system punishing responsible people by reason of supporting growing governmental expenses," explained Jozefina ZAKOVA, General Director of Slovak Insurance Association.

NOTE: comparisons with the previous year should be carefully considered as in 2016 the Slovak National Bank has changed the reporting standard according to the Solvency II requirements; some of the insurance policies' classifications were reconsidered, thus the figures may be not entirely comparable

Read more about the Slovak insurance market evolution in 1H2016 in the forthcoming issue of XPRIMM Insurance Report 1H2016, to be released on October, 23rd, on the occasion of the Baden-Baden XPRIMM Reception (Kurhaus Casino, Runder Saal).

Access www.xprimm.com and download the 1H2016 Slovak insurance market statistics.

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

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