The life insurance market, although still very small in absolute figures, placed an impressive 25.8% growth rate. According to its President, the market authority expects that "by the end of 2013, life insurance will exceed the 10% market share." In order to support this development, ISA works continuously to improve the people's financial literacy.
On the non-life side, although the undisputed segment remains motor insurance (53% market share), the most interesting developments were recorded on the property insurance line. For example, as POPOSKI revealed to XPRIMM, in 2013 the retail segment of the property insurance line witnessed a 30% growth. However, there is still a lot to work on this segment, as insurance coverage for cat risks is currently very low, with "only about 5% of the total premiums for property insurance covering these risks," although Macedonia has a significant exposure to natural catastrophes.
It should also be mentioned that agricultural insurance is expected to play an increasing role in the future, as agriculture has a very important place in the Macedonian economy and recently "in order to stimulate the purchase of agricultural insurance, the Government decided to award the highest subsidies of premiums compared to most European countries."
As far as the companies' profitability is concerned, an improvement is expected in 2013, "given that in the previous 3 years, most of the companies showed losses in their operations due to the major reforms undertaken in order to comply with legal requirements imposed by ISA," says Klime POPOSKI.
Get a comprehensive image of the Macedonian insurance market by reading the first issue of Insurance Profile Macedonia FY2012-1H2013. See how you can get a copy.
Access www.xprimm.com and download the 1H2013 Macedonian insurance market statistics.
Market portfolio (in MKD and EUR):
- Gross written premiums
- Paid claims
- Growth rates
- Life insurance
- Non-life insurance