ISTANBUL
MARCH 2012
1
ASSOCIATION OF SERBIAN INSURERS
Background
•
Association of Serbian Insurers is the legal successor of the Association of
Insurance Organizations of Yugoslavia, which was established by Insurance
organizations, in February,1968.
•
The Association of Serbian Insurers is a non-profit organization engaged in
common interest affairs of the Association’s members and their promotion and
representation, as well as development of the insurance business and education in
that respect; It also conduct activites concerning public authorizations stipulated
by the Law; The Association initiates enactment and amendment of the Laws and
other Regulations from the area of insurance;
ASSOCIATION OF SERBIAN INSURERS
Business activities
•
Green card – within the public authorizations, the Association proscribes and prints Green
Card forms, coordinates the work of Insurance companies relating to international MTPL and
claims arising out of the use of motor vehicles in the country and abroad, guarantees third
party claims settlement, handles the claims, etc.
•
Guarantee Fund– establishes the level of contributions funded by Insurance organizations,
assesses, handles and settles claims and recourses
•
Representation of the Insurance organization before state authorities and other authorized
bodies in the country and before international Insurance organizations
•
Proposes and implements the Code of conduct in affairs concerning the Insurance industry
of Serbia
•
In virtue of the Mandatory Traffic Insurance Act Information Centre is established with the
Association of Serbian Insurers, intending to achieving the most efficient settlement of
claims in case of damages arising out of the use of motor vehicles and application of the
Bonus-Malus system.
ASSOCIATION OF SERBIAN INSURERS
Members
• On 31st December, 2011. there were 27 companies operating
in Serbia, 23 of them being members of the Association of
Serbian Insurers
SERBIA
INSURANCE MARKET
Insurance companies
Number of companies by type of insurance business
year
2005
2006
2007
2008
2009
2010
2011
life and nonlife
8
7
6
6
6
6
6
non-life
life
total
8
6
8
9
9
9
10
1
1
4
6
7
7
7
17
14
18
21
22
22
23
• On 31st December, 2012, 4 companies were engaged in
reinsurance
Total gross insurance premium for the period from
2005 to 2010
( u 000 € )
700000
600000
500000
Total
400000
Non-life
Life
300000
200000
100000
0
2005
2006
2007
2008
2009
2010
Insurance premiums of the most frequent types of
insurance for the period from 2005 to 2011
Share in total insurance premium of the most frequent
insurance types for the period from 2005 to 2011
Concentration of insurance premiums for the period
from 2005 to 2011
Insurance premiums by types of insurance in 2010
Code
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Type of insurance
Accident insurance
Voluntary health insurance
Motor insurance
Rail vehicle insurance
Aircraft insurance
Ship (vessel) insurance
Goods in transit insurance
Property insurance against fire and other perils
Other property insurance
MTPL
Aircraft Liability Insurance
Vessels Liability Insurance
General liability insurance
Credit insurance
Warranty insurance
Financial loss insurance
Legal expenses insurance
Travel assistance insurance
Other non-life insurance
Life insurance
Annuity insurance
Supplementary insurance along with life insurance
Voluntary pension insurance
Other types of life insurance
Total premium
(000 €)
34,192
9,937
73,897
2,066
1,218
868
8,427
46,106
75,352
182,604
1,553
109
10,112
425
710
1,269
114
8,852
16
78,889
4,982
6,862
0
48
Share in total premium
6.23%
1.81%
13.47%
0.38%
0.22%
0.16%
1.54%
8.40%
13.74%
33.28%
0.28%
0.02%
1.84%
0.08%
0.13%
0.23%
0.02%
1.61%
0.00%
14.38%
0.91%
1.25%
0.00%
0.01%
Total non-life insurance (from 1 to 19 )
457,830
83.45%
Total life insurance ( 20 to24 )
TOTAL
90,780
548,611
16.55%
Premium share of the top five companies
TOTAL
NON-LIFE
2011
2010
LIFE
2011
2010
2011
2010
1.
DUNAV
28,24
25,93
1.
DUNAV
32,00
29,59
1.
DELTA GEN.
25,55
25,24
2.
DELTA GEN.
18,73
18,51
2.
DDOR
20,15
21,08
2.
WIENER ST.
24,20
25,20
3.
DDOR
17,88
18,50
3.
DELTA GEN.
17,45
17,18
3.
GRAWE
19,34
21,28
4.
WIENER ST.
8,30
8,67
4.
UNIQA než.
6,19
5,87
4.
DUNAV
8,20
7,47
5,21
4,90
5.
WIENER
5,31
5,39
5. UNIQA životno
7,64
7,50
78,36
76,51
81,11
79,11
84,92
86,69
5. UNIQA neživot
Motor Third Party Liability
Number of MTPL policies and total premium
by companies in 2011
No.
1
2
3
4
5
6
7
8
9
10
11
12
Company
Number of MTPL
policies
AMS
AS
Basler
DDOR
Delta Generali
Dunav
Milenijum
Sava
Takovo
Triglav
Uniqa non-life
Wiener
TOTAL
128.202
19.223
2.914
295.991
394.630
482.305
107.190
94.166
225.332
150.995
99.425
25.838
2.026.211
Total
premium
(000 €)
10.367
1.788
247
26.915
35.476
43.724
9.893
8.695
19.858
13.612
9.029
2.590
182.194
Share of MTPL premium by companies in 2011
CONCLUSIONS
As for the year 2011, one can conclude that the situation on insurance market and the trend of
development were positive, although slightly slowed down.
(QIII 2010 – QIII2011)
•
Balance sum in insurance sector was increased for 5,6%
•
Capital was increased for 8,8%
•
Technical reserves were increased for 4,2%, with the total coverage of technical reserves of Life and Nonlife insurance. Life insurance increased from 63% to 83%, and Non-life insurance increased from 21% to
27%, which is the result of investing into15-year bonds of the Republic of Serbia.
•
Total insurance premium is 3% higher y-o-y
•
With 84,2% of share in total premium, Non-life insurance is still dominant. The Motor vehicles liability
insurance premium and the Property insurance premium recorded growth, whereas Casco Motor vehicles
insurance premium recorded drop.
•
Life insurance increased its share in total premium from 14,8% to 15,8%.
•
Market concentration measured by Herfindahl Hirschman index is moderate.
ASSOCIATION OF SERBIAN INSURERS
GUARANTEE FUND
GUARANTEE FUND
•
•
•
•
GF was established in 1997, as an integral part of the Association of Insurance Organizations of Yugoslavia.
GF was formed with the purpose of offering economic protection to third parties that sustained damage
caused by uninsured and unknown vehicles, and vehicles bearing insurance issued by Insurance
companies against which the bankruptcy proceedings was initiated.
GF makes most of its incomes from regular contributions paid by Insurance companies and from collection
of recourse receivables.
Legal time frame for handling and settlement of the claim is 90 days from the day of claim submitting. In
regular procedures, claims are being processed immediately, but the court case can remain in proceedings
for more than several years, depending on the case complexity, value of dispute and the level of
disagreement between the prosecutor and the defendant
GUARANTEE FUND
•
For the accidents that occurred in a period from 2005 to 2011, GF paid out:
Year
TOTAL PAID
EUR
UNINSURED
EUR
% OF THE
UNINSURED IN
TOTAL
CLAIMS
UNKNOWN
EUR
% OF THE
UNKNOWN
IN TOTAL
DAMAGE
BANKRUPTCY
EUR
% SHARE OF
BANKRUPTCY IN
TOTAL DAMAGE
2005
5.377.293
1.536.993
28,58
353.844
6,58
3.486.456
64,84
2006
5.951.188
1.377.424
23,15
469.333
7,89
4.104.430
68,97
2007
5.303.973
1.573.675
29,67
502.359
9,47
3.227.940
60,86
2008
7.952.652
1.734.203
21,81
842.676
10,60
5.375.774
67,60
2009
10.352.408
2.191.455
21,17
1.049.704
10,14
7.111.248
68,69
2010
6.804.383
2.075.126
30,50
909.174
13,36
3.820.083
56,14
2011
6.758.419
2.319.555
34,32
959.083
14,19
3.479.781
51,49
INFORMATION CENTRE
OF THE
ASSOCIATION OF SERBIAN INSURERS
INFORMATION CENTRE
Information centre is organized in conformity with the Mandatory Traffic Insurance Act, with
following key features:
• Unification of all MTPL insurance data, for all licensed vehicles in Serbia
•
It is a unique data base containing full set of information on issued insurance policies and
registered claims with full control of the issued insurance policies;
•
Facilitation of implementation of Bonus Malus system
•
Web portal – customer service with an objective to offer prompter insight into the accident’s
details and easier settling of the claim, as it offers information about vehicles registered in
Serbia which were involved in car accidents on the territory of RS, as well as information
relating to claimant and guilty party.
•
It is planned to carry on with constant development of the IC e.g. developing of the module
for fraud revealing in MTPL insurance and to integrate it into the similar EU systems
BONUS/MALUS SYSTEM
•
•
•
•
Applied since 1st September, 2011.
The system of the level of the premium for MTPL Insurance for vehicles, by applying of the appropriate
premium degree,
If there was no damage recorded in the previous year, the price of the insurance policy will be reduced for
5%, two years without the damage bears the bonus of 10%, and for three years the bonus reaches the
maximum of 15%.
Person that causes one car crash in a year, will pay 50% higher policy, 100% for two crashes, while three
and more crashes increase the insurance for 150%.
Premium degree
(i)
1
2
3
4
basic
5
6
7
8
9
10
11
12
Coefficient of the premium
degree (ki)
0,85
0,9
0,95
1
1,15
1,3
1,5
1,7
1,9
2,1
2,3
2,5
Less than 3% of the drivers in Serbia gets malus!
PERIODIC MOTOR VEHICLE INSPECTION
(PMVI)
MAJOR PROBLEM ON THE INSURANCE MARKET
MODEL OF MOTOR VEHICLE REGISTRATION IN SERBIA
PMVI
INSURANCE
POLICY
TAX PAYMENT
OBTAINING OF
REGISTRATION
CERTIFICATE IN
THE POLICE
More than 85% of the MTPL insurance policies are sold via PMVI
Agencies, hence the sale is practically relocated from Insurance
companies
PMVI
•
•
•
•
•
•
The price of mandatory vehicle insurance in Serbia is unique, so there is no competition among
Insurance companies in that part.
Comissions went to even 30% and 40% of premium!
At the beginning of the year 2011, there were roughly 800 agencies, at the end of September
1120, and on 31st December 2011, the figure went up to 1375, while the official estimations
indicate that 2 million vehicles in Serbia require only up to 200 PMVI Agencies.
The PMVI service itself is mainly free of charge although according to some calculations it should
cost EUR 22. That brings the Government to the condition of sustaining a loss – starting from VAT
loss which is almost EUR 10 million, all the way to the total loss that the Government sustains is
several times higher, and more than 60 million eur are „drawn out“ of legal money flows.
The second problem is the lack of control over PMVI procedures which are even performed
illegally – without having the car actually driven to the PMVI facility. It causes poor conditioned
cars to be driven with no limitation - almost one fifth of car accidents is caused by technical
irregularity of the vehicle. In Serbia, during the last ten years, car accidents took the following toll:
dead ................................ 9.000 persons
severe injuries ................ 180.000 persons
2/3 ................................... remained disabled
In 2010, 650 people lost their lives, and some 17.000 were injured. That makes 89 people out of
million (European average is 78 casualties out of million, and on Malta, which is said to be „the
safest“ , the number is 37)
POSSIBLE SOLUTIONS
• Change in car registration system – license plates should be issued each 7
years, and PMVI should be performed annually.
• More thorough and stricter control of PMVI agencies and their
commissions.
• Introduction of mandatory minimal PMVI service price
• Enabling of personalization of registration (license) labels in the branch
offices of Insurance companies.
PROBLEMS WITH PMVI SYSTEM
How Insurance Companies in Serbia lose up to 60 milions € in commissions
Thank you for your
attention
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