Yesterday, the Act Amending the Health Care and Health Insurance Act came into force so as of 1 January 2024, supplemental health insurance will be abolished in its current form. Triglav will have this impact on 2023 results as currently, supplemental health brings losses as a result of the Slovenian Government setting the maximum price of supplemental health insurance premium in May, which is lower than the cost of services the social system provides.
According to the press release, the legal basis to abolish the existing supplemental health insurance system in Slovenia was adopted, which resulted in Triglav as well as 2 other supplemental health insurance providers no longer providing this type of insurance products in Slovenia, starting 1 January 2024. The Act Amending the Health Care and Health Insurance Act came into force so as of 1 January 2024, supplemental health insurance will not exist in its current form. Triglav will have this impact on 2023 results as currently, supplemental health has a loss ratio of more than 100%. it is very cyclical in nature and it depends on when social systems will provide services and bill insurance providers. So Triglav has in its first estimate mentioned impact might be even higher and result in 40% lower EBT for 2023.
Triglav notes that the effects of this change on the Group’s operations are tied to the way that this abolition was implemented. In accordance with its strategy, Triglav will continue to develop and strengthen complementary health insurance in the Adria region markets, which is one of the main pillars of its insurance activity.
We have already covered this change before, more of which you can read here. The news right now is that yesterday, 20 July 2023 the Act Amending the Health Care and Health Insurance Act came into force, ending the uncertainty regarding the changes to the supplemental health insurance system in Slovenia. As of 1 January 2024, supplemental health insurance will be abolished in its current form. This means that Triglav will no longer provide supplemental health insurance products in the context of the Slovenian public healthcare system as of that date. Furthermore, due to the same law, all the existing supplemental health insurance contracts in Slovenia will also be terminated on 1 January 2024.
Triglav notes that they expected these changes for many years, and as such they have taken them into account when it comes to the Group’s strategic development activities and plans. They further note, however, that the way these changes are implemented is unexpected, and the Group has already communicated its first estimates of the effects of these facts on its operations. They also note that they will continue to be strategically focused on complementary health insurance, which it sells and develops as commercial insurance products in the Adria region markets, and they expect these activities will continue in the future.
