Klime POPOSKI, President of the Council of Experts, Macedonian ISA
"We expect a growth, especially in the non-life property insurance, as well as in the liability insurance. Beside these two directions, a specific development trend has been noticed in the life insurance sector, namely the development of the bank insurance, a concept which till now, was not present on the Macedonian market, and by which, the policyholders will be offered with a new type of quality service".
XPRIMM: As any young insurance market, the Macedonian one is witnessing permanent changes? Did 2010 bring any new players?
At the end of 2010, 13 insurance undertakings have been active on the
Macedonian insurance market, i.e., the same market participants as in
2009, of which, 11 are non-life insurance, and 2 are life insurance
undertakings. Toward the end of December 2010, the new participant
"WINNER Life-Vienna Insurance Group"- Skopje was granted with a license
for conduction of life insurance operations.
During 2010, the number
of insurance brokerage companies has reached 14, i.e., it was increased
by 2 new companies, and the number of insurance agencies has reached
the number of 6, i.e., it was increased by one new agency.
XPRIMM: How do you assess the evolution of the Macedonian insurance market in 2010 compared to 2009?
level of development of an insurance market, measured through the basic
indicators, density and penetration rate, shows that both indicators
remain unchanged relative to 2009. At the end of 2010, the density rate
was MKD3,154 (EUR51.27), while the penetration rate was 1.52%. The
realized gross written premium in 2010 was MKD6.48bn (EUR105.37m), which
represents a growth of 4.83% relative to the GWP realized in 2009.
positive trend has been present in both insurance groups. The realized
GWP in the non-life insurance was MKD6.48bn, or 94.53% of the total GWP
of the insurance sector, which represents a growth of 4.83% relative to
the same period in the previous year. In the life insurance, which
represents 4.87% of the total GWP of the insurance market, the realized
GWP was MKD354.5m, i.e., a growth of 17.85%. This information confirms
the expected further development of this insurance group.
period January 1st - December 31st 2010, the insurance sector made a
profit of MKD71.57m compared to the realized loss of MKD170.83m in the
previous year. The profit made by the life insurance undertakings was
MKD43.2m, while the profit of the non-life insurance undertakings was
XPRIMM: How did the financial crisis affect the Macedonian insurance market?
During 2010, the consequences from the financial crisis over the
insurance sector were smaller. This was due to the fact that, unlike
other countries from the region, the Republic of Macedonia achieved a
growth of the GWP. The realized rate of real GWP growth is still
unofficial, in ranges of 0.5% - 1%. Still, it indicates the recovery of
the whole economy. The realized growth of the GWP of 4.83% in 2010 is
also a proof for the economy's recovery, as well as the positive
financial result in the insurance sector of MKD71.57m profit compared to
the realized loss of MKD170.83m in 2009. In this context, it is also
very important to emphasize the aspect of the insurance undertakings'
investment activity, conditioned by the not sufficiently developed and
shallow financial market in the Republic of Macedonia. In the previous
years, this has also been a kind of protection buffer in creating loses,
i.e., with only few types of investment instruments, predominantly bank
deposits and government securities, the effects of the financial crisis
XPRIMM: What are your expectations for 2011?
expect a growth, especially in the non-life property insurance, as well
as in the liability insurance. A specific development trend has been
noticed in the life insurance sector. The trend has also been evident in
the realized financial result of the life insurance undertakings, as
well as the starting of one new market subject, by which, the number of
new life insurance undertakings for 2011 will be 2. In compliance with
the submitted development programs, the expectation of the new insurance
undertakings is to contribute to the development of the bank insurance,
a concept which till now, was not present on the Macedonian market, and
by which, the policyholders will be offered with a new type of quality
service. In addition, the Republic of Macedonia supported the regional
World Bank project for catastrophe risk insurance. The purpose of the
project is forming of a joint re-insurance undertaking by several
countries in Southeastern Europe and Caucasus region, by which, the
insurance undertakings will be able to offer catastrophe risk insurance
on the local markets with acceptable prices.
Editor: Vlad BOLDIJAR
| Published on 07.07.2011