First year-on-year drop for Serbian insurance market
In the second quarter of 2009, on Serbian insurance market, total premiums
came to RSD 28.5 billion (EUR 305 million or USD 430 million), recording
its first year-on-year drop (0.7%) as the global financial crisis
fallout and the sector's exposure to market risk dampened demand
for insurance products.
Insurance market structure in Q2 changed compared to the same quarter last
year. The shares of non-life and life insurance in the total premiums were
86.9% (89.6% in Q2/2008) and 13.1% (10.4% in Q2/2008). Increased share
of life insurance compared to the same period a year earlier was due
to the 25.5% growth in life insurance premiums and the 3.8% drop in
non-life insurance premiums in Q2 2009.
In Q2 2009 the Serbian insurance market was made up of 24 insurance
companies, three more than in the same period a year earlier. Of the total,
20 companies engage in insurance activities only, three in reinsurance,
and one in both insurance and reinsurance operations.
Insurance companies in foreign ownership continued to dominate in terms
of non-life insurance premiums (from 59.4% in Q2 2008 to 60% in Q2 2009),
total assets (from 57.1% to 61.4%), and total insurance sector employment
(70%).
At August 17th, the insurance sales network also includes 13 banks,
66 legal entities, 121 individuals entrepreneurs, 1 tourist agency
and 8,336 individuals licensed to engage in insurance brokerage activity.
