The National Bank of Serbia published the report for 2022 for the insurance sector

On June 19, 2023, the National Bank of Serbia (NBS) published the report for 2022 for the insurance sector. Among other things, the report provides us insights into the activities of the National Bank of Serbia in 2022, an analysis of the insurance market, and business indicators.

When it comes to the insurance market, the NBS states in its report that “The five countries with the largest share in the total premium realized on the world market (USA, China, Japan, Great Britain and France) in 2021 covered 65.8% of that market, while the Republic of Serbia ranks 79th in the world according to the realized premium.” It is further stated that the Republic of Serbia is in a satisfying position, with the potential for improving this position.

When it comes to the market participants themselves, the authors of the report state that there are 20 (re)insurance companies operating in the Republic of Serbia and that their number has not changed compared to the previous year. Out of these 20, 16 companies deal exclusively with the insurance business, and only 4 companies deal exclusively with the reinsurance business. Of the companies engaged in the insurance business 4 companies deal exclusively with life insurance, 6 deal exclusively with non-life insurance, and 6 companies deal with both both life and non-life insurance.

Finally, when it comes to premium amounts, the report stated that in 2022, insurance companies generated a total premium of 133.9 billion dinars (1.1 billion euros or 1.2 billion dollars), which represents an increase of 12.2%.

Analysis of the sales channels showed that the largest part of the total premium in 2022 was realized through: insurance companies (63.0%), insurance brokers (12.9%), technical inspections (8.9%), insurance agents (5.5 %) and banks (4.5%).

Around one billion euros of damage is recorded every year in Austria

The risks are still significantly underestimated, according to Christian Eltner, Secretary General of the Austrian Insurance Association VVO, even though the fact that there is a clear rise in natural disasters and extreme weather events.

At a joint news conference, experts from the insurance sector, climate and preventative research, and other fields cautioned that time is of the importance and risk reduction is a key concern. However, although the fact that they must be implemented promptly, lawmakers have not yet backed the insurance industry’s requests for national responses to natural disasters.

The perception of the risk of natural disasters and awareness of the dangers in Austria vary widely by location and are generally very low, despite the fact that damages of an average of 1 billion euros are reported there each year. Surprisingly, 62% of Austrians think that the government is the only entity that can protect them from natural disasters. Everyone surveyed agrees that there is no information available on how one can personally protect oneself from natural disasters. Only 50% of those polled understood what civil protection alarms are or what to do in the event of one. Damage to open spaces (44%) and direct damage to the house or apartment (39%), respectively, are the two types of damage highlighted in the poll.

Man-made climate change is causing changes in extreme weather events in Austria. Over the last few decades, there has been a 30% increase in the number of days with heavy rainfall in the summer, while days with little rain have become less common. Climate researcher Dr. Marc Olefs explains that this is directly linked to global warming, as the atmosphere can hold more water vapor with higher temperatures. As a result, thunderstorms are becoming more intense and can lead to more severe storms with heavy rain, hail, and strong winds. If the Paris climate goals are achieved, these changes may stabilize, but if greenhouse gas emissions continue to rise, more significant changes in extreme weather events are expected.

In terms of preventing natural disasters, a recent KFV study reveals that “there is still a clear need to reach a certain level when it comes to preventing natural hazards. The population’s need for information and education is also very high.”