In 2011, total insurance premium amounted to RSD 57.3 billion (EUR 548 million), adding a mere 1.4% on the last year's figure, indicate the final financial data. "The development of the Serbian insurance market measured in terms of premium growth showed the deceleration of positive trends. In 2011, total premium increased by 1.4% nominally, but fell by 5.2% in real terms relative to 2010", according to the Insurance Sector in Serbia - Report for 2011 published in early April by the National Bank of Serbia (NBS).

Non-life premium accounted for 82.6% of the total premium, while the share of life premium rose from 16.5% in 2010 to 17.4% in 2011, thanks to the 6.8% increase from the year before. "The sector of life insurance is growing in Serbia, as well as in other regional countries, and it is expected to record higher growth rates than non-life insurance, but this still depends on the economic recovery", Vice-Governor of the National Bank of Serbia (NBS) Mira ERIC-JOVIC said, at the end of March, on the occasion of the Regional Conference ''Potential of The Insurance Market in SEE".

Secretary General of Association of Serbian Insurers (ASI), Vladan MANIC who participated in the Conference, urged the authorities to adopt the Insurance law. "It is a condition for continued compliance with EU directives, but also for the development of life insurance". MANIC said that the low level of security is inherent in the Serbian market and, at this point, it seems the only way the market development can be stimulated is by introducing new forms of compulsory insurance. He added that all items subjected to subsidies provided by the state should be insured and welcomed the decision of the Ministry of Agriculture, Trade, Forestry and Water Management of continuing the implementation of new forms of compulsory insurance through the Programme of credit support to the Serbian livestock development.

Analyzing the market portfolio, one may notice that five types of non-life insurance accounted together for 74% of the total portfolio - accident insurance, motor hull, fire and allied perils, other damages to property insurance and MTPL.

"MTPL insurance which in 2006 overtook the lead from property insurance retained its position in 2011 with a 32.6% share in the total portfolio. The new Law on Compulsory Traffic Insurance and secondary legislation on application of the bonus-malus system is expected to further enhance this important segment of the Serbian insurance market, comprising 12 insurance companies in 2011", outlined the Report.

Following the year 2009, which bore the brunt of the global financial crisis mitigated only in late 2010, a new slowdown in the Serbian insurance sector was recorded in 2011, with both compulsory and voluntary insurance premiums going down.

MTPL declined for the first time - by 0.5% at year-end. The share of property insurance shrunk further - to 22% in 2011, despite the fact that the premium rose by 1%, year on year. At the same time, Motor hull insurance, which experienced the strongest share increases until end-2008, saw a 5.7% drop in premium relative to the previous year and further shrinking of its share - from 13.5% in 2010 to 12.5% in 2011.

With 28 insurance companies operating in 2011, the Serbian insurance market added two more companies from the last year (AXA Nezivot and Russian company SOGAZ Osiguranje - licensed in December 2011). Of the 28 companies, 24 engaged in insurance and four in reinsurance only. Of the insurance companies, seven are exclusive life-insurers, eleven exclusive non-life insurers, while six provide both life and non-life insurance.

"Breakdown by ownership shows that 21 insurance companies were in majority foreign and seven in majority domestic ownership. As a result of successful privatisation in the past period and the entry of foreign companies in the market based on greenfield licences (13 companies since 2005), foreign-owned insurance companies maintained their dominant share (started in 2007) in life premiums (92%), non-life premiums (60.1%), total assets (67.9%) and the number of employees (65.4%)", indicate NBS.

The insurance sales network also included 19 banks licensed for agency operations, 79 legal entities, 109 natural persons - entrepreneurs, as well as 13,363 natural persons licensed to engage in insurance agency/brokerage.

Access www.xprimm.com and download the FY2011Serbian insurance market statistics.

Market portfolio (in EUR and RSD):

• Gross written premiums
• Paid claims
• Growth rates
  

Market rankings (GWP/Claims/Market shares - in EUR and RSD):

• Total market ranking
• Life insurance ranking
• Non-life insurance ranking