The growth rate of claims payment has been much lower than the growth rate of premiums expect for the last year where claims paid increased by 28% and premiums by 21% compared with a year ago.
Source: Financial Supervisory Authority
Comments and analysis: ODA
In 2015, ALL 3.6 billion of claims out of 14.1 billion accumulated premiums were paid. During this year, the insurance market comprised 60.23% of the Compulsory Insurance and 39.77% of Voluntary Insurance.
Non-Life Insurance bear the largest weight of the insurance market with 92.62% of the total insurance carried out during this year. This insurance category includes all insurance services that are not included in life insurance (such as real estate insurance, health insurance, vehicle insurance etc.).
Life insurance is offered to individuals and in case of their death another individual designated by the insured receives an amount in compliance with theinsurance policies. During 2015, this category accounted for 7.29% of the total insurance market.
Source: Financial Supervisory Authority
Comments and Anlysis: ODA
Source: Financial Supervisory Authority
Comments and Anlysis: ODA
In 2015, in the market of non-life insurance, the ratio of claims paid versus premiums earned by insurance companies was 26.47%. This is calculated as the ratio of claims paid (ALL 3.5 billion) compared to premiums earned (ALL 13.05 billion). Claims paid pertain to 2015, but insurance policies may have beenmade earlier and consequently the premiums paid according to these policies may belong to previous years.
But, in the life insurance market, the ratio of claims paid to premiums received by insurance companies has been lower that is only 18.36%. This is calculated as the ratio of claims paid (ALL 188 million) versus premiums earned (ALL 1.03 billion). Even in this case the premiums paid according to these policies may belong to previous years.
Accumulated Premium Ratio/Paid claims 2006-2015
Source: Financial Supervisory Authority
Comments and Anlysis: ODA
The insurance market is very important because it allows the transfer of risks from a party to another. So individuals and businesses that do not want to bear the risk, may transfer it to an insurance company. This is an essential function helping in the smooth operation of an economic and financial market in the country.
Contribution by: Griselda Ruci