By the end of June 2023, the total GWPs of the Slovenian insurance sector increased by 9.5% YoY, and amounted to EUR 1.62bn. In terms of the segments, the Non-life Insurance segment grew by 11.3% YoY, while the Life Insurance segment increased by 4.4%.
The latest release of the Slovenian Insurance Association, recording the developments in the Slovenian insurance market up to June 2023 has been made. According to the report, we can see that the insurance market is on a positive trajectory, with growth recorded in both the Life as well as Non-life segments. In total, the Gross Written Premiums (GWPs) of the Slovenian insurance sector increased by 9.5% YoY, or EUR 140.3m in absolute terms, and by 19.9% MoM, or EUR 269m on a monthly basis. Of this, Non-life insurance accounted for 74.45%, or EUR 1.21bn, and recorded an increase of 11.3% or EUR 122.8m YoY, and 20%, or EUR 201m MoM. Meanwhile, the Life insurance segment accounted for the remaining EUR 414.5m, or 24.55%, recording an increase of 4.4%, or EUR 17.5m YoY, and 19.7%, or EUR 68.1m MoM.
Breaking this growth by segments and starting with Non-life, the total GWPs grew by 11.3%, or EUR 122.8m YoY, and 20%, or EUR 201m MoM. In terms of the insurance categories inside this segment, on a YoY basis, the largest absolute increase was recorded by Land motor vehicles insurance, which increased by EUR 41.7m, or 20.4%, followed by Motor vehicle liability insurance, which increased by EUR 35.4m, or 22.5%, and Ship insurance, which grew by EUR 11m, or almost 127%. On a MoM basis, the largest growth was recorded by Health insurance, which increased by EUR 57.6m, or 20%, followed by Land motor vehicles insurance, which increased by EUR 43.1m, or 21.2%, and Motor vehicle liability insurance, which increased by EUR 32.1m, or 20%.
On the other hand, the largest increase in the Life insurance segment was recorded in the Life assurance, which increased by EUR 9.5m, or 6.2% YoY, and EUR 25.5m, or 18.7% MoM. Unit-linked life insurance also recorded an increase, growing by EUR 3.1m, or 2% YoY, and EUR 26.4m, or 20.3% MoM.
Changes recorded by the Slovenian insurance sector in June 2023 (absolute amount, EUR ‘000, YoY)
Source: Slovenian Insurance Association, InterCapital Research
It should be noted that the insurance sector is quite cyclical. This can clearly be seen in the data in June, with the higher amount of vehicle-related insurance, as well as health insurance policies being taken at the start of the summer tourist season. Overall, the industry is still growing and expanding. However, given that no data is available yet for July (when major storms were recorded in Slovenia, but also the region) and August (when major flooding was also recorded in Slovenia), one would expect two things. Firstly, a higher number of claims, which as was already communicated by the largest insurance companies in Slovenia would influence profitability. Secondly, the higher demand for insurance policies due to natural disasters, which combined with the higher potential for occurrence of these, would also lead to higher premiums for these insurance policies.