The Croatian Insurance MarketMTPL and claims
Supervisory Institutions in the Financial Sector:
o Croatian National Banko Croatian Financial Services Supervisory Agencyo State Agency for Deposit Insurance and Bank Rehabilitation
Financial InstitutionsAssets in 2011
in mil. EUR %
Commercial banks 54.802 76,9Mandatory pension funds 5.524 7,8Insurance companies 4.304 6,0Leasing companies 3.482 4,9Open-end investment funds 1.605 2,3Housing savings banks 1.054 1,5Voluntary pension funds 265 0,4Closed-end investment funds 225 0,3
TOTAL 71.261 100,0
Financial Institutions in the Croatian Financial Market
Share of Financial Institutions in the Total Assets of the Financial Sector in 2011
Insurance Industry
o 27 Insurance Companieso 1 Reinsurance Companyo 35 Brokerso 371 Agencieso 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
Source: HUO
2003 2004 2005 2006 2007 2008 2009 2010 20110
50
100
150
200
250
300
350
184201
223248
275294 286 281 279
143153
165182
200217 210 206 205
41 48 57 66 75 77 76 75 74
Insurance Density(Premium per capita in €)
Total Non-Life Life
2003 2004 2005 2006 2007 2008 2009 2010 20110.00
0.50
1.00
1.50
2.00
2.50
3.00
0.59 0.63 0.71 0.74 0.78 0.74 0.74 0.73 0.71
2.06 2.04 2.05 2.07 2.07 2.07 2.07 2.03 1.97
2.65 2.68 2.76 2.81 2.85 2.81 2.81 2.76 2.68
Insurance Penetration(Premium in % of GDP)
Life Non-Life Total
Insurance Density & Insurance Penetration - Croatia
Insurance and Reinsurance Companies as at 31/12/2012
28 Total
1 Reinsurance
7 Life
10 Non-Life
10 Life and Non-Life
Croatian Insurance Bureau 20 Members 15 Motor Insurers
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
Insurance Companies by Ownership and Insurance Business Written
generate98,00% of Total GWP
obligatory membership
Premium Breakdown by Company Ownership – 31/12/2012
Domestic Majority Ownership
11
56,23 % of premium
26,85 % of premium
68,51% of premium
Foreign Majority Ownership
43,77 % of premium
77,15 % of premium
31,49 % of premium
Total
Life
Non-Life
16
Total
Euroherc
1. Allianz 15,4 16,7
2. Croatia 14,1 14,8
3. Merkur 10,5 10,4
4. Grawe 10,1 10,2
5. Agram životno 8,3 8,3
2011 2012
58,3 60,2
1. Croatia 36,5 35,6
2. Euroherc 14,9 14,9
3. Allianz 9,7 10,3
4. Jadransko 9,5 9,5
5. Triglav 4,8 4,2
2011 2012
75,5 74,6
1. Croatia 30,5 30,0
2. Allianz 11,2 12,1
3. 10,9 10,8
4. Jadransko 7,0 6,9
5. Kvarner VIG 4,9 4,6
2011 2012
64,6 64,3
Non-Life Life
Market Concentration
Top 10 84,4 83,9 90,7 90,1 88,8 89,5
Top 5
Source: HUO
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 €.
The Croatian Insurance Market in 2012
Gross Premiums Written from 2003 - 2012
Total GPW – drop by 1.17%
Average Growth Rate 2000-2012 – 6,08%
-
In 000 €
2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
804,
048
878,
240
974,
084
1,08
4,09
3
1,20
1,35
0
1,28
3,67
1
1,24
7,25
7
1,22
5,28
5
1,21
1,99
3
1,19
7,84
3
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00% 12.50%
9.40%
8.80%
9.20%
10.90%
11.30%
10.80%
6.90%
-2,84%
-1,80%
-1,08%
-1,17%
Source: HUO 1€ = 7,545624 HRK
Premiums - Life and Non-Life % 2000 - 2012
GPW Non-Life 6.577.321.316 HRK 871.673.611€- decrease by 2,04%- in 2008 +8,50%
GPW Life 2.461.153.946 HRK 326.169.704€- increase by 1,23% - in 2008 +2,50%
-/+
Source: HUO
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
21.90%
24.60%
17.10%16.30%
20.80%
14.20% 14.70%
2.50%
-2.24% -1.20% -1.07%
1.23%
10.70%
6.10% 6.60% 7.20% 7.80%
10.30% 9.40%8.50%
-3.05%-1.90% -1.09%
-2.04%
Life Non-Life
Portfolio Breakdown - 2012
Source: HUO
32.53%
23.62%
7.97%
7.85%
6.49%
5.58%
3.19%
12.78%
Motor Vehicle Liability
Life
Motor Vehicle Casco
Other Damage to Property
Fire and Natural Disasters
Accident
Other Liability Insurance
Others
MTPL - GWPand Average Premium
HR GWP (in 000 €) HR Average Premium in €
Source: HUO
2005 2006 2007 2008 2009 2010 2011 20120
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
293,
758
320,
471
355,
745
382,
269
382,
478
379,
938
385,
784
386,
368
4.98%
8.96%
11.00%
7.50%
0.06%-0.70%
1.54%0.15%
GWP Growth Rate
2005 2006 2007 2008 2009 2010 2011 2012165
170
175
180
185
190
195
200
205
170.27 171.34
185.94
192.60195.47
197.20198.81
200.38
-Stable MTPL average premium
MTPL market-Less reported claims-Decrease in claims frequency
2003. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011.0
5,000
10,000
15,000
1,850 1,785 1,751 1,841 1,855 1,912 1,820 1,729 1,794
6,4317,374 7,814
9,00310,174
11,899 12,14112,761
14,152
Average MTPL Claim Paid and Average Outstanding Claims Provision 2003- 2011 (In €)
Average claim paid Average Provision 2003. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011.30.00
35.00
40.00
45.00
50.00
55.00
60.00
65.00
70.0065,58%
62,86%61,69%
65,11%
58,20%56,12%
48,68%
41.39 40.59
MTPL - Share of Claims Paid in Total Premium
Source: HUO
52,59%47,41%
Brake down of Claims Paid in 2011
damage to propertypersonal injury
MTPL – Average Premium Central European Bureaux Group of CoB
Source: HUO
MTPL – Average ClaimCentral European Bureaux Group of CoB
Source: HUO
Consumer ProtectionAlternative 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.
-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
Legislative Changes in Croatia
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