MONTENEGRO: 2021 may become a record year for the Montenegrin insurance sector

31 December 2021 —
The Council of the Insurance Supervision Agency adopted a Decision on the amount of regular contribution to the Guarantee Fund for 2022, wrote.

The regular contribution, which companies performing road compulsory insurance are obliged to pay to the Association of National Insurers of Montenegro for 2022, was determined as 3.91% of GWP in 2021 from compulsory accident insurance of passengers in public transport; liability insurance of owners/users of motor vehicles and liability insurance of owners/users of vessels, as well as 0.39% of GWP in 2021 from liability insurance of owners/users of aircraft.

The Council also revealed performance indicators of insurance companies for the first 11 months of 2021. During the period, insurance companies generated GWP in the amount of EUR 90.3 million, which is 5.1% or EUR 4.4 million more y-o-y (if compared to 2019, which was a record so far - an increase of 3.8% or EUR 3.3 million). Segment-wise, non-life increased by 6.7% or EUR 4.5 million (compared to 2019 - growth by 1.2%), while life GWP decreased by 1.1% or by EUR 185 thousand y-o-y (if compared to 2019 - GWP increased by 16.6% or EUR 3.3 million).

In this regard, the President of the Council pointed out that total result for 11 months of 2021 indicates the most likely record year, keeping in mind that 2019 was a record year and in 2020 there was a slight decrease compared to the pre - pandemic year. "The data show that the market is developing and showing resilience to external and internal shocks, but the Agency continues to intensify its activities to maintain the market stability, considering the possibility that negative effects of the pandemic on the insurance market may occur over time", the President of the Council explained.