National Insurance Bureau

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National Insurance Bureau

• 2008, Macedonia
• Director,
• Jonce Popovski

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Contents

• Insurance companies
• Description of the Insurance market
• Financial indicators
• Insurance legislation
• Supervision bodies
• Role of the Insurance Bureau
• Difficulties in the market

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I. Insurance companies

• There are 12 insurance companies operating in the
  insurance market in 2008, two of which dealing
  only with life insurance

Insurance Companies Qbe Vardar Evroins Sava
Tabak Sigma Eurolink Insig Uniqa
Osiguritelna Polisa Albsig Kroacia Insurance
Grawe
Broker Companies Euro Eksperts Euromak WIASS In-Br
oker VFP Fideliti Mobiliti Seda
Agencies AMG Premium Magma Safe
Invest Trend Aktiva

• - In 2008 Makosped Insurance Company merged into
  Euroins, Sigal was taken over by Uniqa, and some
  new broker companies and agencies were also
  open.
• - Two new insurance companies applied for
  membership, one of which started its operation on
  1st June this year.
• - Only Qbe Makedonija deals with reinsurance

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• Competition
• Recently established insurance companies
• Increased number of broker companies and agencies
• Increased number of licensed agents and brokers
• Increased availability to the population
• System of maximum fair conditions on the market
• The purchase of the domestic companies by foreign
  insurance companies increases the business
  quality in the insurance market
• The information for establishment and entrance of
  companies strengthens the existing competition
  
• New products and additional services used for
  keeping and taking over the clients (ex. mini
  full insurance, pocket- full insurance , etc.)
• Disloyal competition appearance

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• II. Description of the insurance market

• The insurance policies sale in 2008 was carried
  out by insurance agents, broker companies and
  insurance representatives

• Increased number of insurance companies, broker
  companies and agencies have significant influence
  over the insurance market

• Increased supply and diversification of new
  products from the insurance companies in the area
  of health insurance, travel insurance, full cover
  insurance, etc.

• Increased amount of life insurance as a positive
  trend in the insurance market

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Structure and changes in the market share
Table.1
Insurance Companies Insurance premium in 000 Insurance premium in 000 Insurance premium in 000 Premium
Insurance Companies Total Life Insurance Property Insurance Structure
Qbe 19,280 534 18,746 18.5
Vardar 22,247 - 22,247 21.3
Evroins 5,973 - 5,973 5.7
SavaTabak 16,320 - 16,320 15.6
Sigma 4,421 - 4,421 4.2
Eurolink 9,855 - 9,855 9.4
Insig 3,086 - 3,086 3
Uniqa 5,404 - 5,404 5.2
Osiguritelna Polisa 9,355 - 9,355 9
Albsig 4,671 - 4,671 4.5
Croatia 1,484 1,484 - 1.4
Grawe 2,318 2,318 - 2.2
Total 104,416 4,336 100,080 100
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Table .2
Insurance Companies 2007 2008 Changes Movement
Qbe 21.4 18.5 Decrease  
Vardar 25.5 21.3 Decrease  
Evroins 4.5 5.7 Increase  
SavaTabak 14.3 15.6 Increase  
Sigma 5.3 4.2 Decrease  
Eurolink 8.6 9.4 Increase  
Insig 3.2 3.0 Decrease  
Uniqa 4.7 5.2 Increase  
Osiguritelna Polisa 9.3 9.0 Decrease  
Albsig 0.8 4.5 Increase  
Croatia 1.2 1.4 Increase  
Grawe 1.1 2.2 Increase  
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III. Financial indicators Insurance
Table.3
- Continued growth of the premium in the last 5
years - Participation of claims in the premium
with 48.18
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Insurance class year 2008 Stipulated gross premium Stipulated gross premium Settled Claims Settled Claims Claims/ Premium
Insurance class year 2008 000 Structure 000 Structure
Accident 8,984 8.60 6,253 12.43 69.6
Health Insurance 488 0.47 13 0.03 2.8
Passenger vehicles (full coverage) 13,491 12.92 7,954 15.81 59.0
Aircrafts (full coverage) 736 0.71 576 1.15 78.2
Marine insurance (full coverage) 14 0.01 - - 0.0
Transportation of goods (cargo) 1,215 1.16 74 0.15 6.1
Insurance of property against fire and natural disasters 6,372 6.10 1,944 3.86 30.5
Remaining property Insurance 13,254 12.69 5,265 10.47 39.7
Third party liability Insurance (vehicles) 51,536 49.36 26,161 52.00 50.8
Third party liability Insurance (aircrafts) 423 0.41 - - 0.0
Third party liability Insurance (marine) 3 0.02 - - 0.0
General Insurance 841 0.81 80 0.16 9.5
Credit Insurance 21 0.02 42 0.08 198.8
Guaranty Insurance 3 0.00 - - 0.0
Financial losses Insurance 214 0.21 14 0.03 7.0
Tourist support Insurance 2,457 2.35 230 0.46 9.4
Life and Annuity Insurance 4,336 4.15 1,699 3.38 39.2
Total Property Insurance 100,079 95.85 48,609 96.2 48.6
Life and Annuity Insurance total 4,336 4.15 1,699 3.38 39.2
Total 104,415 100.00 50,309 100.00 48.2
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Reinsurance
Table.4

• Compared with 2007, there is a decrease in the
  allocated premium for 1.95 million euro or
  15.82. At the same time the share of the
  reinsures is increased for 0.5 million euro.

Year Allocated gross premium in 000 Allocated gross premium in 000 Allocated gross premium in 000 Participation in settled claims 000 Participation in settled claims 000 Participation in settled claims 000
Year Total Life Insurance Property Insurance Total Life Insurance Property Insurance
2002 16,247.09 - 16,247.09 10,931.85 - 10,931.85
2003 11,626.98 - 11,626.98 6,909.41 - 6,909.41
2004 11,147.84 - 11,147.84 4,514.93 - 4,514.93
2005 9,298.54 - 9,298.54 3,468.52 - 3,468.52
2006 9,796.44 - 9,796.44 1,273.56 - 1,273.56
2007 12,302.70 65.82 12,236.88 2,353.22 6.26 2,346.96
2008 10,356.17 130.31 10,225.86 2,893.17 18.15 2,875.02
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1. Legislation and supervision

• In the Republic of Macedonia, the insurance field
  is regulated by specific provisions
• 1. Insurance Supervision Law Official
  Gazette of R.M. 79/07, 88/08
• 2. Compulsory Traffic Insurance Law
  Official Gazette of R.M. 88/05 , 81/08
• By means of the amendments and the appendices of
  the Compulsory Insurance Law, since July 2008,
  the number of the representatives from the
  National Insurance Bureau in the TPL insurance
  commission has been reduced and it is prescribed
  that the tariff for TPL has to be published in
  the Official Gazette in the Republic of
  Macedonia.
• Also, the National Insurance Bureau is limited
  by the legislator in respect of setting the green
  card price as an additional premium. Namely, the
  tariff for the green card is restricted by the
  previous agreement by the Ministry of finance.
• It is also know that by this Law the maintenance
  of the system for TPL policies and claims
  evidences is regulated.
• The NIB keeps statistical records and on the
  base of statistical data procession, observing
  the statistical insurance standards the same are
  quarterly announced published on its web site.

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• The above mention law prescribes high and more
  severe penalties for offences cost by natural and
  legal entities, as well as for the insurance
  companies and the National Insurance Bureau, but
  for the time being it is not applied since the
  Agency for insurance supervision has not been
  established yet.
• Furthermore, some other positive rules are
  also applied in order to increase the regulation
  in the insurance market, such as the Obligatory
  Relations Law, Traffic Safety Law, Mediation Law,
  Vehicles Law of 2008 etc.
• Over 87 of the claims noticed for all classes of
  insurance are settled out of court. For
  establishing the level of some types of
  intangible claims by the Insurance companies, the
  Criteria for claim indemnification are applied (
  the same were also obligatory for the courts ,
  but these were abolished by the Constitutional
  Court in February this year). Consequently, it
  can be mentioned that significant problem are the
  court judgments where for almost the same
  injuries the damaged parties are awarded the
  amounts in the scale of 17 or even more.
• The supervision in the insurance market is made
  by the Ministry of Finance, but in final phase of
  its establishment is the Agency for insurance
  supervision.

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• Commitments and roles of NBO

• NIB fulfills its obligations in accordance with
  the law regulations, as well as with the Council
  of Bureaux.
• The obligations of the Macedonian NIB are similar
  or same with the obligations that the other
  National Insurance Bureaux have.
• It is actual in the operation of the National
  Insurance Bureaux to function in compliance with
  the insurance market operation in the Republic of
  Macedonia.
• Special aim of NIB is, in near future, to
  reorganize itself in relation to its members and
  the directives of the Council of Bureaux.
• The communication between the National Insurance
  Bureau and the Government is correct and in
  accordance with the Law. There is no influence on
  the operation of the Bureau and its members,
  accordingly.

Osiguravajuce tržište 2007 god.
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1. Difficulties in the Insurance market

• The major problem is the large amount of
  uninsured vehicles
• False Green Card
• Unequal criteria for settlement of intangible
  claims
• Improper structure in the insurance (life and
  property)
• Recourse payment
• Influence of the world changes over the
  Reinsurance

Osiguravajuce tržište 2007 god.
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• Thank You for Your Attention