Market Trends of Property and Casualty Insurance Industry
This section covers the major market trends shaping the Slovenia Property & Casualty Insurance Market according to our research experts:
Increase in Non-life Insurance Density in the Country
Insurance density is used as an indicator for the development of insurance within a country, non-life insurance density is soaring year-on-year. The insurance industry is able to make substantial financial contributions to a national economy. It contributes to the formation of national revenue by creating added value through compensation and its role as an institutional investor. As a country develops and its gross domestic product rises, insurance demand increases considerably as the macro-economic focus starts to shift or deviate from its earlier incarnation. As a result of this kind of transition, in a developing country, the amount of disposable income is often increasing. When income increases, so do the rate of consumption and the degree of affluence, which can have a direct effect on population growth, density, and urbanization; this, in turn, has resulting socio-cultural consequences and an enhanced sense of risk aversion.
Land Motor Vehicle Insurance Share is Highest in the Non-life Segment:
At the end of 2018, the insurance of land motor vehicles was contracted by nine insurance companies in Slovenia, which together generated EUR 284.2 million in premiums. It is the second-largest insurance class in the non-life insurance group on the Slovenian insurance market (the largest is still health insurance). With its positive growth trend, its importance is increasing, especially at the expense of the decline in the volume of AO (Car Insurance) insurance, which exceeded in 2017 for the fifth consecutive year. Its total insurance portfolio of SIA (Slovenia Insurance Association) members was 12.1%, the highest share in the last two decades. The number of motors insured motor vehicles is unknown, as more than one vehicle can be insured with one insurance policy. In addition, some insurance companies include partial-term insurance in the number of insured. The average annual increase in the number of AK Motor vehicles' policies taken out over the 10-year period amounts to 1.3%, which is only 0.1 of a percentage point higher than the average increase in the number of claims of these policies. The loss rate dropped by 0.3 of percentage points last year but was still below the 10-year average of 25.4% from 23.7%.
