Insurance Sector in Serbia for Q3 2023

31.01.2024. minute read author: Aleksandar Marinković

The National Bank of Serbia, Insurance Supervision Department, issued a report on the insurance sector in Serbia for Q3 2023. When it comes to market participants, there are no changes; at the end of Q3 2023, the insurance market in Serbia comprised twenty insurance and reinsurance companies.

Sixteen of these twenty were engaged in insurance activities only, and four were engaged in reinsurance activities. If we take a closer look at insurance companies, the report states that four were exclusive life insurers, six were exclusive non-life insurers, and six provided both life and non-life insurance.

When it comes to ownership in the insurance sector in Serbia for Q3 2023, fifteen insurance companies were in majority foreign ownership. This led to foreign-owned insurance and reinsurance companies holding majority shares of life insurance premiums (85.7%), non-life insurance premiums (61.0%), total assets (70.0%), and employment (64.8%).

Apart from insurance and reinsurance companies, there were also other participants in the insurance market, such as banks, financial lessors, insurance brokerages, insurance agents, and certified agents and brokers in insurance. The structure of these other participants in the insurance sector in Serbia for Q3 2023 was:

15 banks,
9 financial lessors and public postal operators who are licensed for insurance agency activities,
111 legal entities (insurance brokerage and agency services),
76 insurance agents (natural persons—entrepreneurs), and
4,323 active certified agents or brokers in insurance.

When it comes to insurance portfolio structure, the total premium in the insurance sector in Serbia for Q3 2023 amounted to RSD 115.6bn (EUR 986mln or USD 1,068mln), a rise of 16.3% relative to the same period last year. In the composition of the premium, the share of life insurance premiums dropped from 20.3% in Q3 2022 to 18.5% in Q3 2023, due to higher nominal growth in non-life insurance premiums than in life insurance premiums.

When examining the premium structure by type of insurance, Q3 2023 data somewhat resembled that of the same period in 2022. The largest share of the total premium (29.9%) was accounted for by motor vehicle liability insurance this time, followed by property insurance (19.2%), life insurance (18.5%), full coverage motor vehicle insurance (“kasko”) (10.6%), and voluntary health insurance (10%).

It is notable that motor third-party liability (MTPL) rose by 18.4% year over year in Q3 2023 and that three companies with the largest share in the MTPL insurance premium accounted for 58.1% of the market in Q3 2023, compared to 57.7% in the same period last year.

Major changes in the new Law on Compulsory Auto Insurance in Croatia

20.12.2023. minute read author: Aleksandar Marinković

In mid-December, the Croatian Parliament confirmed the decision that would enable the abolition of the monopoly of insurance companies. Thus, the Parliament took the side of consumers and car repairers, and after 15 years, they harmonized this Act with the legal framework of the EU.

What are these major changes in the new law on compulsory auto insurance in Croatia?

First of all, under the new law, insurers have fewer rights because insurance companies will no longer be able to assess and determine how much an hour of work will cost and dictate where cars will be repaired. From 2024, hourly service rates will be recognized, not the imposed ones of only 13 euros that have not changed for decades, and policyholders will be able to count on a replacement car in the future.

This means that after a collision, the insurers will no longer be the first to go, but to the service center because the service centers will also be able to do damage assessments at their own, not imposed, prices. It means that there is no longer an insurance monopoly that allows them to simultaneously assess and determine the amount of damages and to ‘force’ consumers into services that they specify.

“The Croatian Association of the Automotive Industry made a huge contribution to the creation of the new law, the aim of which is to bring order to this dark zone of business, which generates several illegalities and irregularities, and to bring it into line with European regulations. The previous law encouraged the gray zone and “theft.” At the same time, due to the huge number of settlements and more than 65 percent of the total number of damages, the safety of poorly repaired vehicles was also threatened, and the state lost EUR 50 million annually in VAT alone,” is stated in the press release from the Croatian Association of the Automotive Industry (HUAS).

Also, the news is that the payment of damages is made within 15 days from the sending of the reasoned offer of the insurer, that is, within a maximum period of 60 days.

The Croatian Association of the Automotive Industry was able to promote greater consumer rights, and the car service profession finally started to be appreciated. Three new things have been added, and HANFA—the body that oversees insurers—must draft a new regulation outlining the specifics of the insurance claim processing process.

The most important major changes in the new law on compulsory auto insurance in Croatia are:

Mandatory payment of damages (the undisputed part of the damages or invoice) within 15 days of sending the explanation to the injured party. And that is at the expense of repairmen.
The injured party’s right to an independent assessment and the right to submit a service workshop offer are introduced. Now it is a legal right!
Greater rights and information for the injured party.
HANFA, as a regulator, issues another regulation for the processing and payment of damages.

Insurance customers are far more open to sharing data than previously assumed by the industry

01.08.2023. minute read author: Aleksandar Marinković

A recent survey conducted by Sollers Consulting and IPSOS revealed that insurance customers are far more open to sharing data than previously assumed by the industry.

According to the study, which included 3,800 insurance customers from the UK, France, Germany, and Poland, a sizeable majority of customers are open to sharing data in exchange for lower premiums.

The results of the survey show that almost one-third of insurance customers expressed a willingness to disclose information in exchange for premium discounts.

According to the survey, insurance customers are increasingly adopting digital insurance plans that call for sharing information about the devices they use.

34.5% of respondents said they would be willing to share information with their insurers to obtain more affordable plans in the face of pressures from inflation and a cost-of-living problem.

Out of the nations studied, Polish insurance customers showed the most willingness to share data in exchange for premium discounts, with 41.25% showing an interest in this possibility. Respondents from Germany (36%), the UK (32.75%), and France (26.75%) were not far behind, indicating a strong demand for data-driven insurance solutions throughout Europe.

With a remarkable acceptance percentage of 51%, on-demand insurance, which enables consumers to switch coverage on and off, stood out as the most popular. With a 50.25% approval percentage, usage-based insurance, such as pay-as-you-drive, was also highly appreciated.

The most popular and well-liked data-driven insurance alternative is car telematics, which records driving behavior using sensors in the car or smartphones.

Even while smart home insurance is less common, one-third of customers still show a lot of interest in it.

The adoption of data-driven strategies and a better understanding of individual risks are now possible for insurers, which will result in the creation of more affordable and specialized insurance solutions.

Experts predict that insurance companies will make investments in rebuilding their data architecture and creating new customer-centric solutions in the upcoming years in response to these evolving preferences.

The question that remains is what effect this will have on claims settlement and claims services in general.