STATISTICS: Slovakia, FY2017: insurance market has grown two times faster than the economy

26 April 2018 — Vlad BOLDIJAR
STATISTICS: Slovakia, FY2017: insurance market has grown two times faster than the economy
Last year, the growth rate of the local insurance market (+8.56%) was almost double that of the advance of the economy (+4.69%), thus the calculated indicators as the insurance penetration degree (2.51%) and the insurance density (EUR 393 per capita) significantly evolved as compared to FY2016.

In terms of GWP, the Slovak insurance market totaled EUR 2.13 billion vs. EUR 1.96 billion a year before, according to the preliminary figures provided by the National Bank of Slovakia (NBS).

"The net profit of insurance sector after taxation increased by 8,4% comparing to 2016. The coverage of solvency capital requirement was relatively stable during the year 2017, there was just slight decrease in March to 208% and it was more or less stable during the year around ~208%. In year on year comparison there was decrease as in 2016 was SCR coverage 230%. The reasoning of the change is sharing of profit of companies with shareholders. The gross written premium increased, both in life and in non-life insurance", said Julia CILLIKOVA, Director of the Regulation and Financial Analysis Department of the National Bank of Slovakia.

The life insurance segment experienced an increase of 11.32% y-o-y to EUR 1.07 billion, this type of policies generating 50.27% of the total insurance market, while the non-life classes accounted for EUR 1.06 million, or 5.92% more y-o-y.

In terms of growth rates, the most dynamic life insurance class was the one related to index-linked and unit-linked products: +17.83% to EUR 239.58 million.

On general insurance segment, in absolute values, the largest increases in GWP were recorded on the two motor insurance classes, as follows: MoD GWP was up by 10% to EUR 310 million, while the value of MTPL GWP increased by 9% to EUR 307 million. The third largest non-life insurance subclass - Fire and other damages to property, generated GWP of about EUR 254 million (+2.81% y-o-y) - while the value of paid claims was down by 14% to EUR 67 million.

"The combined ratio in motor insurance recorded at the end of the year improvement as it reached 97.4%. The combined ratio of property insurance was stable and at the end of the year 75% or 81% if we take into consideration also a new so called indirect tax on non-life insurance. There was decrease of investment of technical provision into bonds but investments into funds increased".

Speaking about the new indirect taxation system for the insurance premium in preparation, replacing the current special insurance 8% levy on the MTPL premiums the NBS representative pointed out that "the new taxation system in non-life is expected to be efficient from October 2018 and it will be 8% levy for MTPL and 8% tax for the other lines of non-life insurance".

Access and download the FY2017 Slovak insurance market statistics.