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.

New partnerships, new opportunities

20.11.2023. minute read author: Gortyna

Although you will find them on our client page, we ought to look at brokerage companies as our partners! That is why we see our agreement with Aspekt IFA posredovanje u osiguranju as a new partnership and a new opportunity. An insurance broker is an insurance advisor or consultant who knows the insurance market, understands the client’s needs, and helps and mediates when concluding contracts. An insurance broker does not sell insurance but takes on the client’s work in searching for and choosing the best offer.

With the same goal in mind: to provide the best possible service and solutions to clients, this cooperation is a perfect fit.

This cooperation will be beneficial for all parties: the insured, that is, clients, Apsketf IFA and Gortyna.

Founded in 2008, Aspekt IFA has a long track record of success. It is established as a trustworthy company that has the interest of its clients in the first place. This is why we truly believe that this cooperation has a great future and that it will lead to an improvement in the level at which both companies provide services.

Aleksandar Marinković, Founder and General Manager, stated: “I am thrilled and excited that we managed to find common ground and common interests with Aspekt IFA. Both companies seek to provide the best service to their clients and put clients first. This is why it was easy to arrange this partnership, and we look forward to helping clients of Aspekt IFA with regard to their insurance claims. Aspekt IFA was the first insurance brokerage company to recognize what we do and how we do it. I am thankful to their Founder and Manager Branko Divjaković for trusting us with their client.”

The client of our partner is our client!

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%).