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Slovenia Insurance Report Q1 2008Published by: Business Monitor International Published: Mar. 11, 2008 - 30 Pages Table of Contents
AbstractThis report differs from its predecessors in that it includes BMI’s Insurance Business Environment Rating(IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI’sCountry Risk Rating (CRR). It is now much easier to consider the business environment for the insurancesector in any one country relative to the business environment for other industries in that country that aresurveyed by BMI, and the business environment for the insurance sector in other countries.Slovenia’s IBER is 62.6. Relative to other countries in Central and Eastern Europe (CEE), it is a highlyattractive insurance market for foreign insurers. Within the region, Slovenia stands out for its countrystructure and regulatory framework. The economic outlook is germane. Government policies are likely toremain constant over the long term. However, the IBER is held back by the underdevelopment of the lifesegment. It is also held back by the external risk and bureaucracy in Slovenia. Over the forecast period, we anticipate that non-life premiums will grow by 8% annually in local currencyterms and by 7% in US dollar terms. Life premiums are expected to increase by 15% annually in localcurrency terms and by 14% in US dollar terms. The key drivers of growth in the non-life segment in2007-2012 are the anticipated rise in non-life density from around US$855 to US$1,193 and an expectedincrease in life penetration from 1.49% of GDP to 2.19%. The key driver of growth in the life segment isthe envisaged rise in life density from about US$314 to US$600, and the population is slowly increasing.Neither the life nor the non-life segment is particularly open to participation by foreign groups, as theyare both largely controlled by former state monopolies. The top five local firms claim 90% of the totalmarket. There could be a realignment of interests within Austria's financial services, which means thatGrawe or UNIQA would rethink their commitment to non-life insurance in some of the smaller marketsin the CEE region. Alternatively, there could be a piecemeal sale of individual operations across theregion. Compared with the other countries in Eastern Europe, Slovenia has a very strong economy and is likely togrow further. It is likely to remain largely stable regardless of the upcoming elections in October, due to abroad political and economic consensus. While the market is not easily penetrated from the outside,Slovenian insurers are branching out and developing businesses off shore. There remain a large numberof people with insufficient or indeed no insurance. There are few players, however, in the Slovenian market, and the top five companies hold 90% of themarket. Rationalisation, therefore, is not as much of a factor here as in other Eastern European countries.Slovenia’s economy may also be adversely affected by a decrease in its export market, due to the slowingdown of its main trading partners. The rate of inflation is also one of the largest in the EU. Get Full Details About This Report >> |
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