A supercell storm hit Croatia, Slovenia, and Serbia, causing exceptional material damage

20.07.2023. minute read author: Aleksandar Marinković

Last night, a supercell storm hit Croatia, Slovenia, and Serbia, causing exceptional material damage and, unfortunately, several deaths.

The scenes from the region this morning are apocalyptic, from smashed cars, collapsed buildings, downed trees, and broken glass, all the way to downed cranes.

What creates additional concern is the meteorologist’s announcement that the region will be hit by another storm today afternoon. That’s why we bring you instructions on what to do and what not to do during these storms:

Hazards during storms include:

very strong winds,
heavy and abundant rainfall,
lightning strikes,
possible hail.

During strong storms, the following measures should be taken if you are in an open area:

secure all objects that can fly away due to strong wind or heavy rain and cause material damage or injury to citizens,
secure windows and exterior doors and close all interior doors,
avoid contact with kitchen and bathroom taps, radiators and other metal objects, as they will corrode the conductors.

If you are outdoors, follow these instructions:

stay away from any tall structures (masts, poles, towers), and keep in mind that the safe distance is equal to the height of the structure,
avoid tall trees, fences, telephone cables, and power lines,
try to find shelter in a building or in a car, and if that is not possible, sit on the ground,
avoid standing near buildings or cars that you cannot enter as cover,
if you are in the forest, take cover under the branches of low trees – never stand under tall trees in the open,
avoid the boundary between forest and open space, rather enter the forest,
avoid open fields, hilltops and mountaintops, banks, ditches or other wet places,
do not cross the water, do not swim,
do not hold an umbrella or other metallic conductive objects in your hands (golf clubs, fishing rods, etc.),
avoid being near metal objects, bicycles, camping equipment and the like,
do not stand upright, squat or at least bend down, without touching the ground with your hands, and if you are in a group keep a distance of 5 meters between you.

If you find yourself in a car during a severe storm:

stop the car on the side of the road away from power lines and trees that may fall on the car,
stay in your car and turn on your side lights until the storm passes,
close the windows and do not touch metal objects in the car,
avoid flooded roads.

Gortyna remains at your disposal for any claims that you might have caused by these storms.

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

20.06.2023. minute read author: Aleksandar Marinković

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

12.06.2023. minute read author: Aleksandar Marinković

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.”

EU regulations to ensure a right to accessible and affordable repairs

25.04.2023. minute read author: Aleksandar Marinković

In order for the EU regulations to ensure a right to accessible and affordable repairs, a group of industry representatives such as AIRC, CLEPA, ECAR, FIGIEFA, Insurance Europe and SMEunited, issued a statement advocating for a clear, unambiguous, and immediately applicable EU Repair Clause.

The EC’s suggestions for amending the EU Design Directive and the EU Design Regulation are welcomed by the signatories, especially the inclusion of an EU-wide Repair Clause in the Design Directive. However, several other specific modifications are still needed for this right to repair to become a reality.

In Annex 1 of this publication, the signatories stated the main points with recommendations on how to deal with those points. To be more precise they stated that imposing a 10-year transition period on existing designs would create a considerable burden on society and that a shorter and more flexible transition of up to 3 years should be imposed. The second point was that the restriction of the Repair Clause to “form-dependent component parts” is unclear and unjustified, therefore keeping the original wording of the existing EU Design Directive and Regulations would be a more suitable solution. The final point stated in this statement is that unclear and redundant information requirements on “product design” must be avoided.

EU Parliament adopted new rules to improve protection of road accident victims

02.02.2023. minute read author: Aleksandar Marinkovic

The revised motor insurance regulations are designed to ensure that all EU nationals are treated fairly in the event of accidents and while purchasing auto insurance.

Whether an accident happens in the victim’s home country or somewhere else in the EU, they are still protected by the legislation. The revised regulations, which were approved today with 689 votes in favor, 3 votes against, and 4 abstentions, are meant to enhance and fix gaps in the present Motor Insurance Directive (text of the Fourth motor insurance Directive can be found on our Insights page, under Publications sector).

Negotiators from the Parliament and Council ensured that victims of traffic accidents receive compensation even if the insurance provider goes out of business when they reached a tentative agreement on the text on June 22, 2022. Additionally, when a policyholder transfers from one EU member state to another, discrimination won’t occur thanks to an EU-harmonised “Claims History Statement.” New free and independent pricing comparison tools will make it easier for citizens to compare the costs, tariffs, and coverage provided by various providers.

The amended wording harmonizes the mandatory minimum amounts of coverage across the EU, without limiting any additional assurances that the Member States may impose, to maintain the same minimal degree of protection for victims:

for personal injuries: € 6 450 000 per accident, irrespective of the number of injured parties, or € 1 300 000 per injured party;
for damage to property, € 1 300 000 per accident, irrespective of the number of injured parties.

The modified regulations exempt electric bicycles, mobility scooters, and garden tractors from insurance requirements in order to minimize overregulation. The directive does not apply to vehicles built solely for motorsports.