insurance market in republic of macedonia in 2011

Insurance Market in Republic of Macedonia in 2011

Insurance market Profile

• 15 Insurance undertakings (11 non-life; 4 life)

• 17 Insurance brokerage companies • 6 Insurance agencies

Insurance penetration - GWP in % of GDP – 1,50% (2010:1,53%) Insurance density - GWP per capita – 53,77 euro/capita (2010:51,24)

Gross Written Premium Ratios

• Gross Written Premium :

2011: EUR 110.8 million (102.5 non life; 8.2 life)2010: EUR 105.4 million ( 99.6 non life; 5.7 life)

↑ Gross Written Premium 11/ 10: (5.16%)↑ Non life premium 11/ 10: (2.98%)↑ Life premium 11/ 10: (42.76%)

GWP Comparison 2011/2010 by lines of business

Property insurance

Motor-vehicle insurance (casco)

Accident insurance

MTPL Health in-surance

Insurance of travel

Other non-life insurance

Life as-surance

Total0

20

40

60

80

100

120

-35.00%

-30.00%

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

-2.66% -2.01% -0.91%

6.59%

-9.49%

5.72%

42.94%

5.15%

2010 2011 Relative Difference 11-10

mill

ion

EU

R

Capital Adequacy and Solvency Margin

2008 2009 2010 20110

10

20

30

40

50

60

70

80

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4.0

4.1

4.2

60 61

67

73

17 16 17 18

3.5

3.8

4.0

4.1

Capital and reserves Solvency margin Capital and reserves/solvency margin

mill

ion

EU

R

Financial result 2011

• Financial result for 2011: EUR – 928.733– Non-life insurance: EUR – 1.001.616– Life insurance: EUR 72.883

• Positive financial result – Non-life insurance: 9 insurance undertakings – Life insurance: 2 insurance undertakings

• Negative financial result – Non-life insurance: 2 insurance undertakings – Life insurance: 2 insurance undertakings

Insurance Market ownership structure

83.3%

0.2%4.1% 9.4%

3.0%Foreign legal entitesNatural persons-nonresidentsDomestic legal entitiesNatural persons - res-identsState

2011

Market concentration 2011

• 4 insurance undertakings participate with more than 10%.

Technical reserves

2009 2010 20110

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

411,895 109,540 1,073,700

38,733,364 42,164,39048,031,287

35,888,40037,006,309

41,373,955

Other Claims provisions Unearned premium

7579

90

14,1%

5,7%

2009 2010 20110

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

1,209,695 1,429,382 284,787

6,344,715

8,803,310

14,054,093

Other Claims provisionsUnearned premium Mathematical reserve

7

10

14

34,6%

41,4%

Technical provisions – non life

55.51%31.51%

2.86%1.65%

1.11%7.36%

Bank accounts and depositsGovernment securitiesSharesCorporate bondInvestment fundsOther

Trend Investments covering Technical provisions

Technical and Mathematical provisions –life

Trend Investments covering Technical and Mathematical provisions

25.71%

73.42%

0.87%

Bank accounts and depositsGovernment securi-tiesOther

Distribution channels % of GWPDirect sales 45,69%Insurance brokerage companies 20,71%Tourists agencies 0,52%Banks 1,00%Insurance agencies 4,55%Car dealers stores 0,44%Insurance agents- natural persons 23,12%Other distribution channels 3,97%Total 100,00%

Technical coefficients 2011 2010Claims ratio 57.45% 62.59%Expenses ratio 42.60% 41.85%Combined ratio 100.10% 104.44%

Intermediation and Technical Coefficients

Project activities

• Ongoing projects:

Liberalization on the market for the compulsory MTPL insurance;

Regional project for development of the markets for weather and catastrophe risk insurance in Southeastern Europe;

International cooperation- important events

ISA was hosting:• First regional Europa Re conference-

”Developing catastrophe and weather risk markets in Southeast Europe: from concept to reality”;

• ”Risk Based Supervision Workshop”;• Regional Seminar ”Macro prudential

surveillance and group wide supervision”, organized with IAIS.

INSURANCE SUPERVISION AGENCYVasil Glavinov No.12,  TCC Plaza, 2nd floor

1000 Skopje, MacedoniaTel: +389 2 3254 050 Fax: +389 2 3290 240

E-mail: contact@aso.mkwww.aso.mk

• Thank you!