The Croatian Insurance Market
MTPL and claims
Financial Institutions in the Croatian Financial Market
Share of Financial Institutions in the Total Assets of the Financial Sector in 2011
Assets in 2011
Financial Institutions
in mil. EUR
Commercial banks
%
54.802
76,9
Mandatory pension funds
5.524
7,8
Insurance companies
4.304
6,0
Leasing companies
3.482
4,9
Open-end investment funds
1.605
2,3
Housing savings banks
1.054
1,5
265
0,4
225
71.261
0,3
100,0
Voluntary pension funds
Closed-end investment funds
TOTAL
Supervisory Institutions in the Financial Sector:
o
o
o
Croatian National Bank
Croatian Financial Services Supervisory Agency
State Agency for Deposit Insurance and Bank Rehabilitation
Insurance Industry
o 27 Insurance Companies
o 1 Reinsurance Company
o 35 Brokers
o 371 Agencies
o 25 Banks authorised to conduct insurance representation
activities
per 30.01.2013
Insurance Density & Insurance Penetration - Europe
Source: Insurance Europe, European Insurance in Figures, 2012
Insurance Density & Insurance Penetration - Croatia
Insurance Density
(Premium per capita in €)
3,00
350
294
300
275
286
281
279
2,50
248
250
223
184
217
210
206
205
77
76
75
74
200
50
2,68
2,06
2,04
0,59
0,63
2003
2004
2,76
2,81
2,85
2,05
2,07
0,71
2005
2,81
2,81
2,76
2,07
2,07
2,07
2,03
1,97
0,74
0,78
0,74
0,74
0,73
0,71
2006
2007
2008
2009
2010
2011
2,68
1,50
182
150
100
2,65
2,00
201
200
Insurance Penetration
(Premium in % of GDP)
143
41
153
48
165
1,00
57
66
75
0,50
0,00
0
2003
2004
Total
Source: HUO
2005
2006
2007
2008
Non-Life
2009
2010
Life
2011
Life
Non-Life
Total
Insurance and Reinsurance Companies as at
31/12/2012
Insurance Companies by Ownership and
Insurance Business Written
28 Total
1 Reinsurance
7 Life
10 Non-Life
10 Life and Non-Life
Croatian Insurance Bureau
2011
Domestic
Foreign
Total
Composite
1
9
10
Non-Life
8
2
10
Life
2
5
7
Reinsurance
1
0
1
Total
12
16
28
20 Members
15 Motor Insurers
obligatory membership
generate
98,00% of Total GWP
Premium Breakdown by Company Ownership –
31/12/2012
Total
Domestic Majority
Ownership
Foreign Majority
Ownership
11
16
56,23 %
of premium
43,77 % of premium
Life
26,85 % of premium
77,15 % of premium
Non-Life
68,51% of premium
31,49 % of premium
Market Concentration
Total
Non-Life
2011
2012
Life
2011
2012
2011
2012
1.
Croatia
30,5
30,0
1.
Croatia
36,5
35,6
1.
Allianz
15,4
16,7
2.
Allianz
11,2
12,1
2.
Euroherc
14,9
14,9
2.
Croatia
14,1
14,8
3.
Euroherc
10,9
10,8
3.
Allianz
9,7
10,3
3.
Merkur
10,5
10,4
4.
Jadransko
7,0
6,9
4.
Jadransko
9,5
9,5
4.
Grawe
10,1
10,2
5.
Kvarner VIG
4,9
4,6
5.
Triglav
4,8
4,2
5.
Agram životno
8,3
8,3
Top 5
64,6
64,3
75,5
74,6
58,3
60,2
Top 10
84,4
83,9
90,7
90,1
88,8
89,5
Source: HUO
The Croatian Insurance Market in 2012
27 Croatian insurance companies generated HRK 9.038mn (€ 1.198mn) in Gross
Written Premiums.
Non-Life market - the GWP amounted to HRK 6.577mn (€ 872mn), accounting
for 72,8% of the total premium income of the Croatian Insurance Market.
The largest class of Non-Life business is Motor Third Party Liability Insurance
with a gross written premium of HRK 2.915mn (€ 386mn) and a Non-Life
premium share of 44,3% and 32,3% of the total Croatian Market.
The Croatian Insurance Bureau has 20 Members, of which 15 are active in
Motor Insurance.
The 15 Motor Insurers issued 1.928.201 MTPL Insurance policies at an average
premium of 200 €.
-
Total GPW – drop
by 1.17%
Gross Premiums Written from 2003 - 2012
Average Growth
Rate 2000-2012 –
6,08%
In 000 €
600 000
1 197 843
1 211 993
1 225 285
974 084
804 048
800 000
878 240
1 000 000
1 247 257
12,00%
1 283 671
1 200 000
1 201 350
14,00%
1 084 093
1 400 000
12,50%
10,90%
8,80%
10,00%
8,00%
6,00%
9,40%
10,80%
11,30%
9,20%
6,90%
4,00%
2,00%
400 000
0,00%
200 000
-1,80%
-2,00%
-2,84%
0
-1,08%
-4,00%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: HUO
-1,17%
1€ = 7,545624 HRK
Premiums - Life and Non-Life %
2000 - 2012
-/+
30,00%
24,60%
25,00%
21,90%
20,00%
20,80%
17,10%
GPW Non-Life
6.577.321.316 HRK
871.673.611€
- decrease by 2,04%
16,30%
14,20% 14,70%
- in 2008 +8,50%
15,00%
GPW Life
10,00%
10,70%
5,00%
7,20%
6,10% 6,60%
326.169.704€
7,80%
- increase by 1,23%
-1,90% -1,09% 1,23%
-3,05%
2,50%
0,00%
-2,24%
-5,00%
Life
Source: HUO
2.461.153.946 HRK
8,50%
10,30% 9,40%
Non-Life
-1,20% -1,07% -2,04%
- in 2008 +2,50%
Portfolio Breakdown - 2012
12,78%
Motor Vehicle Liability
Life
3,19%
32,53%
5,58%
Motor Vehicle Casco
Other Damage to Property
6,49%
Fire and Natural Disasters
7,85%
Accident
Other Liability Insurance
7,97%
23,62%
Others
Source: HUO
-Stable MTPL average premium
MTPL - GWP
and Average Premium
HR GWP (in 000 €)
HR Average Premium in €
450 000
12,00%
400 000
11,00%
10,00%
350 000
8,96%
300 000
8,00%
7,50%
197,20
198,81
200,38
192,60
195
185,94
185
4,98%
4,00%
-0,70%
386 368
0,06%
385 784
379 938
382 478
382 269
355 745
320 471
1,54%
293 758
50 000
195,47
190
150 000
100 000
200
6,00%
250 000
200 000
205
0
2,00%
0,15%
0,00%
-2,00%
2005
2006
2007
GWP
Source: HUO
2008
2009
2010
2011
Growth Rate
2012
180
175
170,27
171,34
170
165
2005
2006
2007
2008
2009
2010
2011
2012
Brake down of Claims Paid in 2011
MTPL market
damage to property
47,41%
52,59%
personal injury
-Less reported claims
-Decrease in claims frequency
MTPL - Share of Claims Paid in Total Premium
Average MTPL Claim Paid and Average Outstanding Claims
Provision 2003- 2011 (In €)
14 152
15 000
11 899 12 141
65,11%
62,86%
61,69%
58,20%
60,00
9 003
7 374
65,58%
65,00
10 174
10 000
70,00
12 761
7 814
56,12%
55,00
6 431
48,68%
50,00
5 000
45,00
1 850
1 785
1 751
1 841
1 855
1 912
1 820
1 729
1 794
41,39
40,59
2010.
2011.
40,00
35,00
0
2003.
2004.
2005.
2006.
2007.
Average claim paid
Source: HUO
2008.
2009.
2010.
Average Provision
2011.
30,00
2003.
2004.
2005.
2006.
2007.
2008.
2009.
MTPL – Average Premium
Central European Bureaux Group of CoB
Source: HUO
MTPL – Average Claim
Central European Bureaux Group of CoB
Source: HUO
Consumer Protection
Alternative Dispute Resolution Mechanisms –
Mediation Centre and Ombudsman
o ADR mechanisms are becoming more prominent on the Croatian market.
o The Mediation Centre at the Croatian Insurance Bureau was founded by decision of the
Management Committee of the Croatian Insurance Bureau of 29th March 2007. The
Members of the Croatian Insurance Bureau have thereby expressed a common position
that reflects their readiness to promote and the need to support the out-of-court
settlement of disputes.
o Confirmed its status as the Centre with best results compared to other mediation
centres in the Republic of Croatia.
o Similar to other European countries, the Insurance Ombudsman Service was
established at the Insurance Association – the Croatian Insurance Bureau as an
autonomous and independent dispute resolution body to facilitate the settlement of
disputes between consumers and insurance companies with a view to achieving a
higher standard of consumer protection.
o As a step further towards higher consumer protection standards the Croatian Insurance
Bureau launched the Project Financial Literacy in the Republic of Croatia - an initiative
of the Croatian Insurance Industry – supported by the Ministry of Finance and approved
by the Croatian Government.
Legislative Changes in Croatia
-Current system:
-Evaluation and the level of compensation is decided by the courts which use
criteria established by the Supreme court
-New MTPL Law proposed by the Ministry of Finance
- contains Medical tables and Tables of indemnity in order to implement a
system of evaluation and compensation of personal injury claims