At the end of September 2023, the Slovenian insurance sector recorded total GWPs of EUR 2.36bn, representing an increase of 9.9% YoY. Breaking this down further, the Non-life insurance segment recorded 11.4% growth YoY, while the Life insurance segment increased by 6.1%.
Last week, the Slovenian Insurance Association published its latest report on the changes recorded by the Slovenian insurance market, up to the month of September. In the report, we can see that the total GWPs of the Slovenian insurance market amounted to EUR 2.36bn, which is an increase of 9.9% (or EUR 212.6m) YoY, and 11.9% (or EUR 269m) MoM. Breaking this down into segments, the Non-life insurance segment, which at EUR 1.74bn accounts for 73.9% of the total, recorded an increase of 11.4% (or EUR 177.5m) YoY, and 11.5% (or EUR 201m) MoM. On the other hand, the Life insurance segment, which accounts for EUR 614.8m, or the remaining 26.1% of the total, recorded growth of 6.1% (or EUR 35.1m) YoY, and 13.1% (or EUR 68m) MoM.
Inside the Non-life segment, the largest absolute increase was recorded by Land motor vehicles insurance, which increased by EUR 60m, or 20.6% YoY, and EUR 43m, or 11.2% MoM. Following it we have motor vehicle liability insurance, which increased by EUR 50.9m, or 22.6% YoY, and EUR 32.1m, or 11.7% MoM. On the other hand, on a yearly basis, the largest decrease was recorded by Other damage to property insurance, which declined by EUR 4.6m, or 2.8% YoY. Meanwhile, it recorded an increase of EUR 16.2m, or 11% MoM.
Here we can see two things. Firstly, an increase in insurance related to vehicles is expected, as the summer months are usually the time when people travel the most. This is even more evident in Slovenia, as the main destination of Slovenian tourists is Croatia, and more specifically Istra, which is within driving range. Secondly, the fact that the storms, flooding, and natural disasters in general which happened in July and August haven’t yet worked through the GWPs. In fact, both Fire and natural forces insurance and Other damage to property insurance have recorded increases, but it is difficult to say the natural disasters are the sole reason. The reasons for this are multiple; firstly, the fact that we have the total GWP amount in euros, but not the volume of the policies. Secondly, we do not know the composition of the policies. Thirdly, policies are usually taken for longer time periods, and besides new policies taken for natural disasters directly, an increase in GWPs on the existing policies shouldn’t happen until they run out. After they do, there should be an increase, even if the amount of policies taken stays the same as the higher inherent risk associated with natural disasters will mean higher prices for these policies.
Moving on to the Life insurance segment, the largest absolute increase was recorded by Life assurance, which increased by EUR 15m, or 6.8% YoY, and EUR 25.5m, or 11.6% MoM. Following it, there is Unit-linked life insurance, which increased by EUR 12.7m, or 5.7% YoY, and EUR 26.4m, or 15% MoM.
Changes recorded by the Slovenian insurance sector in September 2023 (absolute amount, EUR ‘000, YoY)
Source: Slovenian Insurance Association, InterCapital Research
