BMI View: We have a positiveoutlook for Slovenia's overall insurance sector over the 2015-2019 forecastperiod, confirming overall growth of gross premiums in both the life and non-life segments. Importantly,both segments will exhibit declines in written premiums in 2015 and 2016, as the sector is pressured byintensive competition among existing players and increasing claims. However, from 2017, we anticipateongoing premiums growth resulting from several key drivers, including changes in the country'sdemographic structure and healthcare reforms initiated by the Slovenian government. Accordingly,opportunities for future investment will mainly be present in particular sub-segments of the sector.
Slovenia's overall insurance industry is set to experience rather sluggish growth throughout the next fiveyears. The market is characterised by aggressive price competition among the incumbent players withvarious users of group products going bankrupt, and constrained by unfavourable economic conditions ashouseholds will likely continue to be unwilling to commit to long-term life insurance contracts in theforeseeable future. These market conditions already put pressure on insurers' ability to grow theirprofitability, and hence we believe that opportunities for future investment will remain scarce in the comingyears.