In May GWPs recorded an increase of 3.7%. Of that Non-life observed an increase of 7.8% while Life decreased by 5.7%.
The Slovenian Insurance Association published their monthly update on the GWP development in Slovenia. In the first 5 months of 2020, the Slovenian insurance market observed an increase in both life and non-life segment, leading to a total GWP growth of 4.49% YoY, amounting to EUR 1.15bn.
Non-life segment, which accounts for 72.25% of the total GWPs, recorded also an increase of 5.79%. Such an increase came on the back of a very strong health insurance performance, which recorded an increase of 12.23% YoY and is the largest non-life item in Slovenia (23.8% of total GWPs). Such a solid increase arguably came mostly on the back of increasing prices of health insurance premiums.
It is noteworthy that land motor vehicles insurance observed an increase of 2.45%, amounting to EUR 149.1m. Meanwhile motor vehicle liability insurance witnessed an increase of 3%, amounting to EUR 131.3m. Credit insurance on the other hand, observed a sharp decrease of 27.9%. This does not come as a surprise given the expected lower loan issuance activity in Slovenia as a result of Covid-19 outbreak coupled with the restrictions on the consumer loans placed by the Bank of Slovenia in November 2019.
Turning our attention to the life segment, it also recorded a 1.24% YoY increase, amounting to EUR 320.47m.
GWPs by Insurance Segment (Jan – May 2020) (%)
Solely May 2020
When observing solely May, GWPs recorded a solid increase of 3.7% YoY after witnessing a slight decrease of 0.9% YoY in April. Such results indicate that insurers were so far only slightly grazed by the lockdown which occurred throughout the whole month of April, while in May we observed a pickup in insurance activity.
The mentioned increase came on the back of a solid non-life performance which observed an increase of 7.8% (or EUR 7.9m). Such an increase could be attributed mostly to a strong performance of Health insurance (+10.7% or EUR 5.2m) and land motor vehicles insurance (+14.1% or EUR 3.82m). On the flip side, a sharp decrease was observed in credit insurance segment, which dropped by 55.7% (or EUR 1.67m).
The solid performance of the non-life segment was partially offset by a decrease in life insurance of 5.7% (or EUR 3.59m). Such a decrease could arguably be attributed to the maturing of policies which were underwritten coupled with lower savings through life insurance and early termination of these policies.
