Gross written premiums in the Balkan country had an average 2.3 percent annual increase over the past three years and reached 57.3 billion dinars ($639 million) in 2011, Chief Executive Officer Vladimir Medan said in Belgrade today. Premium growth may remain weak this year and next, before picking up on an estimated economic expansion of at least four percent by the end of 2014, he said.
"Even such modest growth of economic activity will have a multiplying effect on the growth of premiums" as it will create more disposable income for life insurances and greater demand by business that will want to insure their assets, Medan said in an interview. "Considering the low base and the generally underdeveloped market, there is good potential."
The International Monetary Fund forecast Serbian economic growth at 0.5 percent this year and 3 percent next year. The economy contracted 1.3 percent in the first quarter amid a frozen agreement with the IMF and weak demand for Serbian exports in the European Union because of the sovereign-debt crisis. Gross written premiums rose 1.4 percent in 2011, compared with a 1.6 percent economic growth rate.
Serbia's insurance market is dominated by three insurers including Dunav Osiguranje AD (DNOS), DDOR Novi Sad AD (DDNS) and Delta Osiguranje AD (DEOS), a unit of Assicurazioni Generali SpA (G), which control more than half of the market.
Read the full story on www.bloomberg.com
SERBIA: Basler sees insurance market doubling in six years
19794 views
