XPRIMM News No. 564, 23 September 2021

Insurance Newsletter No. 564, 23 September 2021

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TOP NEWS - CURRENT REPORTS - STATISTIC UPDATES

MARKETS & TRENDS

Inclusive Insurance needs more innovation and cost reducing mechanisms to become a reality in the CEET region
by Daniela GHETU, 2021-09-23
"Overall, inclusive insurance is still a nascent business in the CEET region and is not currently a top priority for most insurance supervisors in the area," is the finding of the REPORT ON THE INCLUSIVE INSURANCE REGULATORY LANDSCAPE IN THE CEET REGION recently published by Access to Insurance Initiative (A2ii).

TOP NEWS

VIG's appeal against Hungarian veto on Aegon acquisition dismissed by Budapest Metropolitan Court
by Daniela GHETU, 2021-09-21
VIG's planned acquisition of the Aegon business in Central and Eastern Europe (Hungary, Poland and Romania) is still hamperd by the negative ruling Hungarian Ministry of Interior, as legal actions taken by the two companies have been not yet successful.

THE BIGGEST FAILURE in the Romanian insurance industry: ASF has decided to withdraw CITY Insurance's operating license and open bankruptcy proceedings
by Daniela GHETU, 2021-09-20
The Board of the Financial Supervisory Authority has decided to reject the short-term financing plan and the recovery plan, to withdraw the operating license, to declare insolvency and to file for the opening of bankruptcy proceedings against CITY Insurance - the largest player in the local market, with a 20% share of the total industry and 45% in the MTPL segment.

BOSNIA: net profit of ASA Osiguranje rose by almost 14% in 1H
by Marina MAGNAVAL, 2021-09-20
Bosnian insurer ASA Osiguranje's net profit rose to BAM 1.47 million (~EUR 752,000) in 1H (vs BAM 1.29 million in the same period last year), which is about 14% more y-o-y, SeeNews reports.

HUNGARY: the share of self-sufficiency savings has fallen sharply in recent years
by Marina MAGNAVAL, 2021-09-21
Within a few decades the current Hungarian pension system will become unsustainable and the population is barely prepared for this: the share of self-sufficiency savings (life insurance, pension funds, NYESZ) has fallen sharply in recent years within savings, portfolio.hu wrote.

NORTH MACEDONIA: paid claims in private health insurance in 1H increased by 87.5% reaching EUR 1.5 million
by Marina MAGNAVAL, 2021-09-20
In 1H2021, the number of contracts in private health insurance increased by 48%, GWP reached EUR 3.8 million. Insurance companies of North Macedonia for the first half of 2021 for reported insurance events paid 87.5% more y-o-y, Insurance Supervision Agency (ISA) reports.

Insurance Europe: Only a permanent reduction of capital requirements would enable insurers to contribute further to Europe's economy
by Daniela GHETU, 2021-09-23
"We welcome the EC's acknowledgement of the need for an overall reduction in insurers' capital requirements. However, only a significant and permanent reduction of capital would allow insurers to increase their contribution to financing the recovery and supporting the EU's Green Deal and Capital Markets Union," Olav Jones, deputy director general of Insurance Europe said.

Insurance Europe: Digital identities, the associated processes of authentication and authorization - an essential component of the digital single market
by Marina MAGNAVAL, 2021-09-21
Digital identities are an essential component of the digital single market and of national and European economies. The insurance industry therefore welcomes the EC's initiative in this area and foresees a lot of potential in the insurance context, Insurance Europe said in its response to a consultation by the EC on its proposal for a European digital identity.

Swiss Re, BlaBlaCar and L'olivier Assurance to launch innovative digital motor product in France
by Andrei Victor, 2021-09-21
Global reinsurer Swiss Re announced it has entered into a partnership with BlaBlaCar and motor insurance specialist L'olivier Assurance in order to create BlaBlaCar Coach, an innovative smartphone app that offers drivers personalized coaching and tips for safer driving, and it will be available with an annual car insurance.

AZERBAIJAN: voluntary life insurance at the end of July grew by 22% y-o-y
by Marina MAGNAVAL, 2021-09-20
GWP in voluntary life insurance in Azerbaijan from January to July 2021 increased by 22% y-o-y and reached AZN 194 million (EUR 96 million*), Trend reports.

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GEORGIA: real estate is insured only for 6.9% of the population
by Marina MAGNAVAL, 2021-09-20
Currently, in Georgia, real estate is insured only for 6.9% of the population, since no one insures property voluntarily - mainly clients of insurance companies in this segment are legal entities or buyers of apartments in the primary real estate market who received mortgage loans and are required to purchase insurance, Business Georgia writes.

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AM Best Affirms Credit Ratings of GIC Perestrakhovanie LLC
by Daniela GHETU, 2021-09-21
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" (Good) of GIC Perestrakhovanie LLC (Russia) (GIC Re Russia). The outlook of these Credit Ratings (ratings) is stable, the agency announced.

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RUSSIA: Leading insurers, the Central Bank, the Ministry of Finance, and the FAS to discuss plans for development and regulation of the insurance market
by Marina MAGNAVAL, 2021-09-23
Insurance regulation, strategy and tactics of leading insurance companies, changes in business models and insurance products, including from the point of view of consumer protection, will become the main topic of the 7th Annual Forum of Insurance Market Leaders.

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UKRAINE: the quality of settlement in MTIBU has improved
by Marina MAGNAVAL, 2021-09-23
The quality of settlement in MTIBU has improved according to the results of a survey among victims of road accidents, who received compensation from the guarantee funds of the Bureau. MTIBU conducts this survey annually.

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STATISTICS

STATISTICS: Czech market posted 4% increase in H1 GWP, CNB & CAP figures shows
by Andrei Victor, 2021-09-23
The first half year statistics recently published by the Czech National Bank - CNB show that at the end of June the local insurance industry totaled about CZK 89 billion (~EUR 3.5 billion), up by 4% y-o-y.

STATISTICS: Hungary: H1 market profit increased to EUR 146 million
by Andrei Victor, 2021-09-23
Hungarian insurers' H1 2021 GWP rose 11.46% year-on-year to HUF 686.81 billion (EUR 1.94 billion), according to the quarterly statistics published by the National Bank of Hungary (MNB).

STATISTICS: North Macedonia 1H2021: balanced GWP growth with a positive overall dynamic
by Daniela GHETU, 2021-09-23
North Macedonia's insurance market ended the first half of 2021 with GWP worth EUR 95.7 million, 14.6% up y-o-y. AT the same time, paid claims increased by 22%, to almost EUR 36 million. Among the main business lines, the evolution was rather balanced, so that the market portfolio structure remained stable.

STATISTICS: POLAND, 1H2021: increased mortality caused by the pandemic affected technical result on life insurance
by Daniela GHETU, 2021-09-23
After the challenging year 2020, when Polish insurers' business decreased by about 8.3% y-o-y, the first half of 2021 showed signs of recovery that resulted in a positive dynamic, GWP growing by 8% y-o-y, to EUR 7.6 billion, data provided by the Polish Chamber of Insurance (PIU) show.

STATISTICS: GEORGIA, 1H2021: overall market growth rate, as well as in life and non-life insurance, were almost the same - about 19%
by Marina MAGNAVAL, 2021-09-20
The Georgian insurance market ended 1H with an increase of 19% y-o-y, GWP reached GEL 448.64 million (EUR 119.29 million), according to the data published by the Georgian Insurance Supervision Service.

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STATISTICS: RUSSIA, 1H2021: GWP grew by 21%, however, insurers' profit dropped y-o-y
by Marina MAGNAVAL, 2021-09-20
The insurance market in 2Q exceeded the result of the same period last year as well as pre-covid levels. Total GWP for the first half of 2021 amounted to RUB 894.2 billion rubles (+21% y-o-y)/EUR 10.37 billion, according to the data published by the Bank of Russia. Market paid claims increased to RUB 384.5 billion (+29.6%).

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ON THE MOVE

VIG Re: Markus Schmid as New Head of Facultative Department
by Andrei Victor, 2021-09-21
VIG Re has appointed Markus Schmid as new Head of Department Facultative as of 1 September 2021.

EVENTS

FIAR - International Insurance-Reinsurance Forum, 23rd Edition

10-12 October 2021

Sheraton Hotel, Bucharest, Romania

CURRENT XPRIMM REPORTS