The highest amount of damage for an insured property paid to an insured was 200.000 euros
Of the five highest paid individual damages in the first six months of this year, two are for property insurance with a total value of 335.000 euros. For coverage of compulsory motor third party liability, the highest paid amount is 173.000 euros, and a company paid 101.000 euros for green card coverage, while 80.000 euros were paid to an insured for cargo insurance (i.e. goods in transit insurance).
The highest paid damage covered with an insurance policy is 12,28 million denars (200.000 euros) and it was paid for property insurance. The damage was collected by a legal entity insured with the non-life insurance company ADOR “Macedonia”, according to the official data of the Insurance Supervision Agency (ISA) for the first six months of this year.
The second damage in terms of value, in the first half of this year, was paid in the class of compulsory motor third party liability insurance. It amounts to 10,66 million denars (173.000 euros) and was paid by “Euroins Insurance”.
The third individual highest damage was paid by ADOR “Macedonia” also on the basis of a property insurance policy. Its value is 7,1 million denars (115.000 euros), and the recipient of the compensation is a legal entity.
Next according to the paid value is the largest individual damage in the green card class. It amounts to 6,2 million denars (101.000 euros) paid by “Halk Insurance”. The most valuable damage in the cargo class (wherewith goods in transit are insured) is 4,9 million denars (80.000 euros) and was paid by the company “Triglav Insurance”.
In the accident insurance class, which has the highest number of active insurance contracts of all other classes of voluntary insurance, the highest damage was paid by the company “Eurolink” and it amounts to 3,57 million denars (58.000 euros).
Next is the highest amount of damage paid for a motor vehicle with casco insurance and it amounts to 1,78 million denars (29.000 euros), paid by “Winner VIG”. The highest amount of damage for travel insurance in the first half of the year was paid by “Sava Insurance” and it amounts to 934.000 denars (15.200 euros).
In the most current type of voluntary non-life insurances – private health insurance, the highest damage was paid by the company “Halk Insurance”. It amounts to 615.000 denars (10.000 euros).
Financial loss insurance is a voluntary class of insurance that has great potential and despite its small market share, it has grown significantly. In this period, the highest amount of damage that was paid in this insurance class is 468.000 denars (7.600 euros) and it is covered by “Sava Insurance”.
In the first six months of this year, citizens, companies and institutions collected a compensation of 1,94 billion denars (31,5 million euros) for damages covered by non-life insurance policies. Non-life insurance companies in the first half of this year paid 319,5 million denars (5,2 million euros) or 20 percent more damages compared to the same period last year.
The Insurance Supervision Agency (ISA) is an independent regulatory body that regulates the insurance market, supervises the operation of insurance companies, takes care of the protection of the rights of the insured and contributes to the financial education of the population.
Policyholders invested MKD 5 billion in policies, 15,6% more than last year
Investments in property insurance are growing at the same rate as compulsory motor third-party liability insurance – a trend that is very important for the development of the insurance market. In this period, the continuous growth of investments in private health insurance, which reached EUR 3.8 million and increased by 38% compared to the first half of 2020, is especially prominent.
Investments by policyholders in non-life insurance policies (gross written premium (GWP)) reached MKD 5 billion (EUR 81.2 million) in the first six months of this year. That is a 15.6 per cent increase compared to the same period in 2020, according to official data from the Insurance Supervision Agency (ISA).
The growth of investments in non-life insurance policies has been expected given that last year was extremely difficult due to the numerous restrictions imposed by the coronavirus pandemic. In half a year, 634,567 non-life insurance contracts were concluded, which is 16 per cent more than last year.
It is important to note that in the first half of this year, investments in non-life insurance have been higher by MKD 600 million (EUR 9.76 million) or 13.6 per cent, compared to 2019.
The highest growth of insurance investments has been recorded in private health insurance and property insurance. As travel restrictions started to ease, a significant increase in the sale of green cards and travel insurance has been recorded.
Property insurance reached a value of MKD 1.4 billion (EUR 22.7 million) for six months, which is MKD 210.3 million (EUR 3.4 million) more compared to the same period last year. Investments by companies, institutions and other legal entities in property insurance exceeded one billion MKD (EUR 17.3 million), which is 29 per cent more compared to the same period in 2020.
Private health insurance has been growing steadily since the expansion of the corona crisis. In the first six months, investments in this type of insurance exceeded MKD 232 million (EUR 3.8 million), which is one million euros or 38 per cent more than last year.
GWP in the most common class of motor third-party liability insurance (which is mandatory by law and has a regulated price) brought revenue of MKD 1.74 billion (EUR 28.3 million) to the insurance companies for a period of six months. Investments in this insurance have increased by 14 per cent compared to the same period in 2020.
Sales of green cards reached MKD 409.4 million (EUR 6.6 million), which is an increase of 34 per cent, while travel insurance reached MKD 47.7 million (EUR 775,000) or 18 per cent more than last year.
“Triglav Osiguruvanje” had the largest market share in the first half of the year, ahead of “Eurolink Osiguruvanje”, “Halk Osiguruvanje”, ADOR “Makedonija” and “Unika”. They are followed by “Sava Osiguruvanje”, “Evroins Osiguruvanje”, “Wiener – VIG”, “Croatia Osiguruvanje – Non-Life”, “Osiguritelna Polisa” and “Grawe – Non-Life”.
All 11 non-life insurance companies recorded an increase in market share. “Halk Osiguruvanje”, “Unika”, “Croatia Non-Life”, and “Grawe Non-Life” had the highest growth in this period. The following are: “Sava Osiguruvanje”, “Wiener – VIG”, “Osiguritelna Polisa”, “Triglav Osiguruvanje”, ADOR “Makedonija”, and “Evroins Osiguruvanje”.
The Insurance Supervision Agency (ISA) is an independent regulatory body that regulates the insurance market, supervises the operation of insurance companies, takes care of the protection of the rights of the policyholders and contributes to the financial education of the population.
Code of Good Practices for Financial Education adopted
The regulators of the financial market: The Insurance Supervision Agency (ISA), the National Bank, the Ministry of Finance, the Securities and Exchange Commission (SEC) and the Agency for Supervision of Fully Funded Pension Insurance – MAPAS have adopted Code of Good Practices for Financial Education that will provide effective, educational programs in behalf of the population. The Code was drafted by the Coordinative Body for Financial Education and Financial Inclusion consisted of members of the five regulatory bodies. This document derives from the Strategy for Financial Education and Inclusion which was adopted in July.
Taking into account the growing needs, the initiatives for financial education as well as the growth of the number of the entities involved in the public, private and civil sector, the need for clear definition of the basics occurred as well as of the manners for inclusion of these entities, coordination, as well as provision of effective educational programs in behalf of the population.
The Code establishes the principles that should be applied during the implementation of the financial education of the population in the country, by all the entities from public, private and civil sector that are to be involved in this process. It states the aims that are to be achieved, the principles that should be applied during implementation of the activities for financial education, the scope of the activities, the good practices regarding the contents and financial education trainers, as well as the manner of informing of the regulators and evaluation of the activities.
The Code is based on the best world experiences and recommendations by INFE-OECD and is aimed to provide promotion and realisation of high quality and impartial financial education by all entities involved. It will strengthen the coordinated approach for financial education thus contributing to better and faster results at national level.
Code of Good Practices for Financial Education adopted
In the modern conditions of dynamic financial system, the financial education becomes necessary for all ages and all social classes of the population. Having regard to the institutions and entities from private and civil sector that may contribute to this field, the financial education is becoming part of the social responsibility and significant aspect of building of their reputation.
Therefore, the coordinated approach of action will contribute to increased efficiency and effectiveness in work.
The financial regulators invite all the entities from the private and civil sector which have realized or are interested in realization of activities for financial education to get acquaint with the Code, available at the following link… and to join the initiative for coordinated approach.
Policyholders reimbursed for 31.5 million EUR i.e. 20% more than last year.
Non-life insurance companies have paid 5.2 million EUR more for policyholders’ claims in the first half of this year as in comparison to the same period last year. There has been a growth in payments in three major classes: Property Insurance, Motor Vehicle Insurance and other classes of non-life insurance.
Citizens, companies and institutions have been reimbursed for 1.94 billion MKD (31.5 million EUR) for losses covered by non-life insurance policies during the first six months of this year, according to the official data from the Insurance Supervision Agency (ISA).
Compared to the same period last year, the amount of gross claims paid (GCP) that insurers paid to policyholders is higher by 319.5 million MKD (5.2 million EUR, respectively) or 20%.
The increase of the total mobility as well as the activities in all social spheres have a significant impact on the growth of the paid claims. They intensified after the lifting of measures and restrictions that in the same period last year were in force to prevent the global health pandemic caused by the COVID-19.
There has been a significant increase in the claims paid in Property Insurance. During the first six months of this year, 11 non-life insurance companies have paid 292 million MKD (4.75 million EUR) to their policyholders for insured property damages, which is 18.5% more than the same period last year.
In Auto Insurance (the most common insurance compulsory by law) the amount of claims paid is 1.04 billion MKD (17 million EUR). In comparison to the same period last year, the amount of claims paid increased by 21% or 182 million MKD (3 million EUR).
In the Voluntary Auto Insurance, i.e. Casco Insurance, the companies have paid claims in the amount of 224 million MKD (3.6 million EUR) for this period.
For the other classes of insurance, Insurance companies have paid 374 million MKD (6.1 million EUR) to their policyholders in the first half of this year. That is for 104.5 million MKD (1.7 million EUR) or 38% more compared to the same period last year.
Out of 11 non-life insurance companies in total, 10 have increased reimbursed amounts. The largest increase (in %) in this period is present in “Croatia Insurance – Non-Life” with 64%, “Halk Insurance” with 61%, “Uniqa” with 42%, “Euroins” and ADOR “Macedonia” with 22%, and “Sava Insurance” with 17%. “Wiener WIG” follows with 5% increase followed by ”Triglav Insurance”, “Eurolink Insurance” and “Grawe Non-Life” with a 4% increase in gross claims paid.
The largest share in the total amount of claims paid for the first half of the year belongs to: “Triglav Insurance” with 243 million MKD (3.95 million EUR) “Halk Insurance” and “Euroins” which have reimbursed 222 million MKD (3.6 million EUR). Then come “Sava Insurance” and “Uniqa” with 200 million MKD (3.25 million EUR), “Eurolink Insurance” with 191 million MKD (3.1 million EUR), ADOR “Macedonia” and “Wiener VIG” with 164 million MKD (2.67 million EUR). “Croatia Insurance – Life” has paid 138 million MKD (2.2 million EUR), “Osiguritelna Polisa” 127 million MKD (2.1 million EUR) and “Grawe Non-life” 65 million MKD (1.06 million EUR).
More detailed information on the following link https://aso.mk/preliminarni-podatoczi-bruto-polisirana-premija-bruto-isplateni-shteti/
The Insurance Supervision Agency (ISA) is an independent regulatory body that regulates the insurance market, supervises the operation of insurance companies, takes care of the protection of the rights of the policyholders and contributes to the financial education of the population.
Memorandum NB – ISA: Improvement of the cooperation for further strengthening of the financial stability
The National Bank and the Insurance Supervision Agency (ISA) have concluded a new memorandum, which will contribute to strengthening and deepening the cooperation between the two institutions on several levels, and thus to further strengthening the financial stability. The Memorandum of Cooperation was signed by the Governor of the National Bank, Anita Angelovska Bezhoska and the President of the Council of Experts of the ISA, Krste Shajnoski.
The improvement of the cooperation between the National Bank and the ISA is of great importance, taking into account the intensified cooperation between the banking and the insurance sectors, primarily through the connection of banking and insurance products. The deepened cooperation between the two sectors of the financial system is a factor for closer coordination and cooperation of the two institutions in order to better manage the possible risks and maintain the stability of the financial sector.
The Memorandum contains three groups of activities for which the two institutions will coordinate and act together: cooperation in the preparation of the regulations, exchange of data and information and possibility for conducting joint controls, if necessary.
More specifically, the Memorandum also provides for cooperation between the two institutions in the preparation of the bylaws that refer to entities that are of common interest. It provides for exchange of opinions on draft-acts, as well as formation of joint working groups constituted of representatives of the National Bank and the ISA.
The document will also increase the coverage of data and information that will be exchanged by the two institutions for the purposes of financial stability analyses, as well as in the field of micro-prudential supervision. Also, the continuity of exchange of data for statistical purposes is maintained.
The provisions of the Memorandum more precisely provide for a possibility of organizing joint controls with respect to entities that are of common interest, which is an additional investment in maintaining the stability of both sectors, and thus the overall financial stability.
Financial stability is a common priority and obligation of financial regulators. The closer cooperation between regulators in the past period and the new format of the Financial Stability Committee established in April last year, which includes all financial regulators, contribute to the progress in achieving the common goal – maintaining financial stability. All this calls for further improvement of the mutual cooperation, in order to strengthen the stability and resilience of the financial system as a supporting pillar of the economy.
Also, the established cooperation in the segment of financial education, financial inclusion and consumer protection also contributes to the further development of the financial system and to the improvement of the well-being of the population.
Number of complaints resolved in favor of discontented policyholders increased by 220%
During the first six months of this year, based on complaints received from discontented policyholders, the ISA has imposed four measures, two of which are fines on three Insurance Companies.
As of June 30, 2021, the Insurance Supervision Agency (ISA) received 82 complaints from policyholders who were dissatisfied with the insurance companies’ operation. In comparison to the same period last year, this year the number of submitted complaints has doubled.
Out of 82 complaints in total, during the first half of this year, 16 were resolved in favor of the appellants, i.e. policyholders who had reported to the ISA regarding their discontent with how the company resolved the reported loss. This is 220% more resolved complaints in favor of the policyholders compared to the same period last year.
The reason for the complaints was the amount of compensation offered by the Insurance Company to compensate the loss, in 21 cases. These complaints have not been processed since the ISA does not decide on the amount of compensation offered.
34 of all submitted complaints were resolved in favor of the companies. Seven complaints were found to be unfounded, two were withdrawn by the appellants, and for two more the proceedings are ongoing.
Regarding the type of insurance, most complaints – 33 were filed for losses incurred in Auto Insurance (the most common class of insurance which is compulsory by law). There were 19 complaints filed for claims for losses covered by Casualty Insurance, and nine were filed by discontented Property Insurance policyholders. Five complaints were for Life Insurance, two for Health Insurance, and one for each of the following: Crops and Fruit Insurance, Travel Insurance, Kasko Insurance, Financial Loss Insurance and General Liability Insurance. Two complaints were filed for other types of insurance.
In 29 cases, the reason for the claim had been the basis for loss payment, and in 21 cases the amount of compensation. Five appellants complained about the deadline within which the company should respond to the complaint. There are four complaints about the deadline for processing the loss and payment of compensation, and two about the amount of recourse. Ten more complaints have been filed on other grounds.
Most complaints in the first half of this year have been submitted for the operation of “Uniqa” i.e. 13. Nine complaints each have been filed for “Halk Insurance”, “Grawe Non-Life” and “Eurolink Insurance”. Eight for “Wiener”, five complaints each filed for the operation of “Croatia Life” and “Euroins”. Four complaints have been filed for “Sava Insurance”, “Triglav Insurance” and “Osiguritelna Polisa”. One complaint each for: ADOR “Macedonia”, “Croatia Insurance – Non-Life”, “Grawe”, the National Insurance Bureau and the Insurance Brokerage Company “SN Broker”. During this period, there have been no complaints filed for: “Wiener Life”, “Triglav Life” and “Uniqa Life”.
Of the total number of submitted complaints, 67 have been submitted by citizens (natural persons), and 15 by legal entities.
A complaint is submitted to the ISA if the insured is not satisfied with the insurance company’s response to the claim or has not received a response within 30 days. The ISA does not investigate anonymous complaints or cases which court or other proceedings are being conducted for.
The Insurance Supervision Agency (ISA) is an independent regulatory body that regulates the insurance market, supervises the operation of insurance entities, takes care of the protection of rights of the insured and contributes to financial education and inclusion of the population.
