STATISTICS: SLOVAKIA, 1H2020: Insurers reported negative rates in premiums and claims

15 October 2020 —
STATISTICS: SLOVAKIA, 1H2020: Insurers reported negative rates in premiums and claims
In the first six months of 2020, the Slovak insurance market totaled EUR 1.14 billion (direct premiums and accepted reinsurance, summed-up), 1.57% less y-o-y, according to the preliminary quarterly financial figures provided by the National Bank of Slovakia (NBS).

The life insurance segment experienced a negative rate of 6.82% y-o-y to EUR 469 million - due the 9.88% decrease reported by the policies with profit participation, while the non-life classes accounted for EUR 678.68 million, or 2.42% more y-o-y. Overall the value of incurred claims (paid claims by local insurers and reserves, summed-up) decreased by more than EUR 80 million to EUR 615 million, of which EUR 321 million related to life indemnities.

Analysing the premium the non-life portfolio structure, we can consider that the GWP distribution or the market weights of main business lines - remained almost unchanged. In terms of evolution, we can observe the influence that both the COVID 19 pandemic had, but also the result of the other long-term risks - the insurance tax implemented in 2019 on non-life segment.

Regarding the pandemic, this made the rapprochement between the insurer and the client much more complicated, but it also changed a lot the human behavior, which is observed especially in the case of travel, MAT and credit insurances.

On the other hand, for insurers, the Coronavirus pandemic accelerated the digitisation of all insurance processes and products in the past. In an interview published on GENERALI CEE Holdong web-site, Juraj JURCIK, CEO of GENERALI Slovakia, declared:

"Our sales people can conclude all types of insurance policies remotely - without personal meetings, in a paperless, cashless way and also with no signature needed. This includes also insurance for entrepreneurs, which was simply unthinkable several months ago. The related, noticeably higher efficiency of work is a real asset."

The other risk - the introduction of a new tax on non-life insurance business, is eroding profits and, in certain segments, also reducing customer, and therefore premium, growth. Thus, despite pandemic, the two motor insurance lines reported at the end of June increasing y-o-y GWP.

Access and download the latest Slovak insurance market statistics.