INSURANCE MARKET IN THE REPUBLIC OF MACEDONIA Vrnjacka banja, 14.6.213
DISCLAIMER The findings, interpretations and conclusions expressed in this presentation are those of the author and do not necessarily reflect the views of the Insurance Supervision Agency of Republic of Macedonia, or its Council of experts members. The Insurance Supervision Agency of Republic of Macedonia does not guarantee the accuracy of the data included in this presentation.
INSURANCE MARKET PROFILE 15 Insurance undertakings (11 non-life; 4 life) 22 Insurance brokerage companies ASUC Broker AD Skopje got a license in 1Q 213 CVO Broker AD Ohrid got a license in 1Q 213 9 Insurance agencies 1 Bank which acts as insurance agency Ohridska Banka AD Ohrid member of Societe General Group 66 Insurance agents 297 Licenses brokers Insurance penetration - GWP in % of GDP 1,52% Insurance density - GWP per capita 55,3 EUR/capita
GROSS WRITTEN PREMIUM RATIOS Gross Written Premium : 212: EUR 113.9 million (14.2 non life; 9.7 life) 211: EUR 11.8 million (12.5 non life; 8.2 life) 21: EUR 15.4 million ( 99.6 non life; 5.7 life) 29: EUR 1.5 million ( 95.6 non life, 4.9 life) 12/11 11/1 1/9 Gross Written Premium 3.2% 5.5% 4.83% Non life premium 1.65% 3.2% 4.16% Life premium 2.35% 4.19% 17.85%
MARKET CONCENTRATION- 212 Non life companies 25.% 2.% Triglav, 19.23% (211:19.38%) 15.% 1.% 5.%.% Qbe, 1.66% (211: 11.79%) Life companies 5.% 4.% Sava, 1.86% (211: 12.23%) Evroins, 7.3% (211: 7.22%) Croatia life, 4.76% (211: 4.44%) Eurolink, 12.35% (211:12.25%) Winner, 9.82% (211: 8.41%) Insig, 2.84% (211:2.85%) Grawe, 44.37% (211: 49.17%) Uniqa, 7.7% (211: 7.38%) Ins. policy, 9.% (211: 9.5%) Croatia nonlife, 5.15% Albsig, 5.9% (211: 4.3%) (211: 5.11%) 3.% 2.% 1.%.% Qbe life, 1.34% (211: 2.3%) Winner life, 6.73% (211: 5.38%) Uniqa life, 6.8% (211: 2.71%)
GWP - LINES OF BUSINESS 4.88% 2.1% 7.3% 4.59% 2.3% 8.53% 7.96% 211 47.96% 7.41% 212 46.76% 11.48% 1.87% 18.31% 19.81% MTPL Motor insurance (casco) Accident Other non- life insurance Property insurance Travel insurance Life assurance
in million MKD GWP BY LINES OF BUSINESS 212/211 2.% 1 11.37% 2.35% 15.% 3.2% 1.% 8 6.36% -2.58% -4.21% -.66% -3.27% 5.%.% -5.% 4-1.% -15.% 2-2.% -25.% Total MTPL Property insurance Motor insurance (casco Accident Travel insurance Other non- life insurance Life assurance -3.% 212 211 Relative Difference 12-11
INSURANCE MARKET OWNERSHIP STRUCTURE 1% 9% 8% 7% 6% 5% 4% 3.5% 3.5% 3.% 3.% 6.7% 6.7% 4.1% 4.% 9.% 9.% 9.4% 9.2% 8.6% 8.6% 83.3% 83.5% State Domestic legal entities Natural persons - residents 4.3%.2% 9.24% 3.1% 212 83.51% Foreign legal entites Natural personsnonresidents Domestic legal entities Natural persons - residents 3% Foreign legal entites State 2% 1% %.2%.2%.2%.2% 29 21 211 212 Natural personsnonresidents
DISTRIBUTION CHANNELS 6.% 5.% 51.53% 45.69% 212 211 4.% 3.% 2.% 23.12% 21.3% 2.71% 18.69% 1.% 5.36% 4.55% 3.97% 2.38%.49%.52%.43% 1.%.9%.44%.% Direct sale Ins. brokerage companies Ins.agents Agency companies Other distr.channels Turist agencies Banks Auto Shops
FINANCIAL RESULTS (212) Non-life insurance: - 1,47 m. Life insurance: - 1,126 m. Total: - 2,173 m. Profit Non-life insurance: 7 companies Life insurance: 2 companies Loss Non-life insurance: 4 companies Life insurance: 2 companies
in million EUR CAPITAL & REQIURED SOLVENCY MARGIN 8 4.2 73 72 7 67 4.1 4.1 6 4.1 5 4 4. 4. 3 2 17 18 18 3.9 4. 3.9 1 3.9 21 211 212 Capital and reserves Solvency margin Capital and reserves/solvency margin 3.8
In milion denars In milion denars TECHNICAL PROVISIONS 7, 1,4 6, 5.566 5.824 1,2 1.28 5, 4, 3, 4.877 2.276 14,13% 2.545 4,64% 2.672 1, 8 6 636 899 34,37% 1,166 2, 1, 2.594 2.955 3.68 4 2 542 41,35% 865 7 66 32 21 211 212 88 7 18 17 2 23 21 211 212 Останати Other Резерви Claims provisions за штети Преносни UPP премии Математичка Mathematical резерва provisions
In million EUR In million EUR In million EUR In million EUR INVESTMENTS- TECHNICAL PROVISIONS Non life companies 9 8 7 6 5 4 3 2 1 7 3 2 2 2 25 41 4 2 5 14 9 35 38 44 38 29 21 211 212 Other Investment funds Corporate bond Shares Government securities Bank accounts and deposits 9 8 7 6 5 4 3 2 1 12% 12% 81% 96% 95% 97% 96% 1% 85% 81% 8% 6% 4% 2% % Q1 211Q2 211 Q3 211 Q4 211 Q1 212 Q2 212 Q3 212 Q4 212 Net technical provisions Investments TP % of coverage Life companies 25 2 15 15 1 11 6 4 5 4 5 4 5 29 21 211 212 Government securities Bank accounts and deposits 25 12% 2 119% 112% 15% 115% 19% 14% 14% 16% 11% 15 13% 15% 1 1% 5 95% 9% Q1 211Q2 211Q3 211 Q4 211Q1 212Q2 212Q3 212Q4 212 Net TP and MP Investments TP and MP % of coverage
In million EUR In million EUR INVESTMENTS - TOTAL Non life companies 14 Other Life companies 4 12 1 8 6 6 2 22 1 1 5 4 13 17 17 22 1 2 27 3 23 3 2 43 Loans Real estate National bureau Investment funds Corporate bond 35 3 25 2 15 1 16 2 4 Shares 1 6 1 2 58 55 54 5 Government securities 5 8 8 12 13 29 21 211 212 Bank accounts and deposits 29 21 211 212
THE REGULATIVE FRAMEWORK Law on Insurance Supervision consolidated text ( Official Gazette of the Republic of Macedonia No. 3/212); Law on compulsory insurance in traffic ( Official Gazette of the Republic of Macedonia No. 88/5, 7/6, 81/8, 47/11 and 135/11); 34 By-laws (secondary legislation acts) regulating issues with regard to licensing, accounting and financial reporting as well as risk management and supervision. 6 by- laws were adopted in 212 English version of the laws can be found at www.aso.mk
CONSUMER PROTECTION- 212 ISA acted on cases submitted by policyholders and consumers of insurance products and services, and the results are as follows: 82 complaints were submitted 64 were resolved, of which 3 in favour of the policyholder and 34 rejected, 14 were without a basis for procedure, or incomplete documentation, and 4 are in the process of resolution. ISA published brochures and flyers for Agriculture insurance, Life insurance and Household insurance.
INSURANCE MARKET CHALLENGES Regional project for catastrophe risk insurance where the Agency will have the function of an implementer of the project in the following period. Liberalization of the motor insurance and development of a legal framework in accordance with the EU standards. Implementation of the system of voluntary health insurance Implementation of the Law on payment of pension and pension benefits from fully funded pension
Thank you! Kosta Spaseski, MSc, Head of Off-site supervision Unit INSURANCE SUPERVISION AGENCY Vasil Glavinov No.12, TCC Plaza, 2nd floor 1 Skopje, Macedonia Tel: +389 2 3254 5 Fax: +389 2 329 24 E-mail: kosta.spaseski@aso.mk www.aso.mk