2009年-世界发展银行全球_Serbia_Financial_Sector_Assessment_Program_Update___Insurance_Sector_27页_887kb

Summary of the Serbian Insurance Sector Assessment (October 2009)

Core Content

The document provides an assessment of the Serbian insurance sector, focusing on its financial and underwriting performance, regulatory framework, and key challenges and recommendations. It is part of the Financial Sector Assessment Program (FSAP) update and outlines the role of the National Bank of Serbia (NBS) in supervising the sector and the potential for future reforms.

Main Points

1. Market Overview

• The Serbian insurance market is small and underdeveloped, with low per capita insurance consumption.
• In 2009, the industry accounted for 4.6% of total assets and 5.6% of total capital in the financial sector.
• Non-life insurance dominates the market, representing 89.1% of total premium, while life insurance accounts for 10.9%.
• Motor Third-Party Liability (MTPL) and Motor CASCO (owners' own damage) insurance are the largest segments within non-life, accounting for 30.4% and 13.9%, respectively.
• The per capita non-life premium was €76 and life insurance was €10 in 2009, lagging behind most of Serbia's neighbors in Southeastern and Central Europe.

2. Financial and Underwriting Performance

• The sector is well capitalized relative to its risk exposure.
• The solvency margin ratio (SMR) has remained close to 200% since 2005, though it dropped slightly in 2008–09 due to stricter solvency requirements and asset depreciation from the financial crisis.
• Larger insurers have significantly higher solvency margins than smaller ones.
• The premium leverage ratio (PLR) is 1.7–1.9, which is lower than the international average of 2.5–3.0, indicating a relatively healthy capital safety margin.
• The technical reserves ratio (TRR) increased from 63% in 2006 to 76% in 2008, showing improved reserving practices. This ratio is expected to converge with the claims ratio over time.
• Receivables ratio decreased from 14.3% in 2006 to 11.8% in 2008, reflecting improved balance sheet quality.
• The liquidity ratio remained stable, with 39.1% of assets held in highly liquid and high-quality forms in 2008.

3. Insurance Regulation

• The NBS Insurance Supervision Department has played a key role in improving the sector's regulatory environment.
• The department employs 42 staff, indicating high productivity relative to the number of market participants.
• Key responsibilities include:
  • Regulatory policy development
  • Off-site and on-site supervision
  • Licensing of market participants
  • Consumer protection
• The NBS has withdrawn licenses from 17 insolvent companies, issued 23 new by-laws, and improved market transparency.
• A transition from compliance-based to risk-based supervision is planned, with the first stage involving the introduction of an early-warning system.

4. Outstanding Issues

• Unresolved MTPL claims totaling €80 million from bankrupt insurers in 2004–05 remain a challenge.
• Dunav, the only state-owned insurer, needs to be privatized.
• The two-step reinsurance requirement limits competition and access to high-rated reinsurers.
• Premium taxation is a barrier to growth, especially for non-life insurance.
• The separation of life and non-life insurance is still pending.

5. Recommendations

• Risk-based supervision should be adopted in line with Solvency II standards to improve efficiency and reduce risk capital.
• Tax incentives should be introduced for non-life insurance (temporarily eliminate 5% tax) and life insurance (tax treatment similar to pension schemes).
• Simplification of licensing requirements for life insurance agents is recommended to boost market participation.
• Development of new catastrophic risk insurance products is encouraged to protect homeowners and the government from natural disasters.
• A consumer education campaign should be launched to raise awareness and understanding of insurance products.
• The funding of MTPL claims should be ensured through industry contributions, surcharges, and possible government support.
• Privatization of Dunav should be pursued with technical preparation and asset divestiture.
• The domestic reinsurance market should be liberalized to allow competition between local and international reinsurers.
• Separation of life and non-life insurance should be implemented as a policy priority.

Key Information

• Total Gross Premium Written (GPW) in 2008 was SRD 52.2 billion, with a 5.3% inflation-adjusted increase from the previous year.
• Insurance penetration is low, with only 27.9% of voluntary property insurance in 2009.
• Market concentration has decreased since 2005, with 18 foreign-owned insurers out of 25.
• Dunav is the only state-owned insurer, representing <28% of GPW.
• The NBS has taken significant steps in improving regulation and supervision, including licensing reforms, consumer protection, and market transparency.
• Underwriting performance remained acceptable in 2008 and 2009, with losses and expenses below premium intake.

Conclusion

The Serbian insurance sector is relatively well capitalized and has made progress in improving financial and underwriting performance. However, it remains small and underdeveloped, hindered by weak economic growth, low insurance penetration, and regulatory constraints. The key challenges include resolving unpaid claims, privatizing Dunav, and liberalizing the reinsurance market. The recommendations focus on enhancing regulatory frameworks, introducing tax incentives, and promoting consumer awareness to foster sustainable growth.