CROATIA: The insurance market GWP might drop by 4.4% y-o-y by the end of 2020

22 September 2020 — Cosmin CONCEATU
Ilijana Jelec, Member of the Management Board of the Croatian Financial Services Supervisory Agency (HANFA), said that Croatian insurance market GWP is expected to drop by 4.4% year-on-year, at the end of 2020.

During the Croatian Actuarial Society (HAD) conference "New Challenges" held on 17 and 18 September 2020, online, Ilijana Jelec gave an introductory speech referring to the decline in gross domestic product, which amounted to 15.1 percent in the second quarter and is the largest quarterly decline since Croatia's independence, and it certainly had an impact on the decline in insurance premiums.

She emphasized that an annual decline in GDP of 8.1 percent is expected at the end of this year, while a reduction in gross insurance premiums is expected to be 4.4 percent, with the largest share coming from a reduction in written premiums in the life insurance segment.

Regarding the solvency position, she pointed out that the insurance market is stable and that, despite the current extraordinary circumstances, the capitalization of insurance companies is adequate.

Referring to the earthquake in Zagreb, she pointed out that in the first seven months of this year, the gross premium written for earthquake insurance increased by 26.2 percent compared to the same period last year, but also the claims paid increased, with a significant increase occurred as early as April, shortly after the earthquake.

Among the new challenges facing the industry, Ilijana Jelec pointed out the solvency audit and the new IFRS 17 standard. An assessment of the impact of the introduction of the euro on the solvency of insurance companies is underway, and the introduction of which is expected in 2023.

Along with Ilijana Jelec, the introductory speech was given by the President of HAD, Lidija Pecigos Visnjic, who pointed out that the conference brings together actuaries every year, as well as other domestic and foreign experts in the field of insurance and scientists. The conference was held under the auspices of the Ministry of Finance and the Croatian Financial Services Supervisory Agency, and the partners of the conference are the Croatian Chamber of Commerce and the Croatian Insurance Bureau.


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