IN THE first six months of 2009, the total volume of insurance premiums in Slovakia decreased 5.2 percent on a year-on-year basis to €1.03 billion. This represented the biggest drop in the last 10 years, the National Bank of Slovakia (NBS) wrote in its analysis of the financial sector’s development for the first half of 2009.
Insurance companies reported a more significant drop in life insurance, down 7.1 percent to €505.78 million. Non-life insurance dropped 3.2 percent to €524.52 million, the SITA newswire wrote in late September.
“After last year, when life insurance made up a larger proportion of all technical premiums for the first time, the ratio reverted in favour of non-life insurance,” wrote the central bank.
The central bank ascribed the decline in life insurance principally to the lower number of insurance policies in classical life insurance. In non-life insurance, the fall was caused in particular by a decline in the car insurance sector.
The drop in premiums in mandatory car liability insurance exceeded 11 percent in the first half of 2009, to €165.92 million. Accident insurance fell by a more moderate 2.5 percent to €150.35 million.
Nearly all sectors of both life and non-life insurance reported a decline in new contracts. Insurers’ profits shrank 13.5 percent y-o-y to almost €70 million. The cost of indemnities went up 10.4 percent y-o-y to €511.23 million.