The number of paid damage increased by 15% i.e. EUR 31.5 million were collected by the insured.
In the first six months of this year the insurance companies paid the total of 35,163 damages for non-life insurance, whereby the insured collected EUR 31.5 million i.e. 20% more than last year. The private health insurance has the highest increase of paid damage i.e. by 68% compared to the same period last year.
In the first six months of this year the insured collected 35,163 damages from the insurance companies. That is 15% increased number of paid damages for non-life insurance compared to the same period last year. In the first six months of this year, 11 insurance companies for non-life insurance paid damages in the total amount of MKD 1.94 billion (EUR 31.5 million). The aforementioned shows an increase by 20% compared to the first six months in 2020, as presented in the official data of the Insurance Supervision Agency (ISA).
The highest increase of the number of paid damages in this period is recorded in the private health insurance – class with the highest increase during the health pandemic caused by the COVID 19 virus. In the period January – June this year, the total of 9,144 damages covered with insurance contracts were paid, i.e. there is an increase in the number of paid damages by 68% compared to the same period last year. In the first six months of this year, the insured collected the total of MKD 92.6 million (EUR 1.5 million) for private health insurance coverage.
With regards to property insurance, the highest class of voluntary insurance according to the value of investments in policies, the total of 4,022 damages were paid for six months. That is an increase by 3% compared to the same period last year. Based on such damages, the insured collected MKD 292.1 million (EUR 4.75 million).
With regards to the most used voluntary class – accident insurance, the total of 3,573 damage claims were paid, i.e. same as last year. The value paid by the insurance companies to the insured amounts in MKD 249.4 million (EUR 4.05 million).
Based on Casco insurance for motor vehicles, 3,661 damages were paid i.e. by 3% less compared to last year. The insurance companies paid MKD 224.1 million (EUR 3.6 million) to the insured for such damages.
As expected, the highest number of paid damages is for the legally mandatory car liability insurance. The total of 13,603 damages were paid with regards to the aforementioned, which is by 19% more compared to the same period in 2020. The value of the paid damages in this insurance class for this period amounts in MKD 875.9 million (EUR 14.24 million).
The Insurance Supervision Agency (ISA) is an independent regulatory body which regulates the insurance market, supervises the operation of the insurance entities, takes care of the protection of the rights of the insured and contributes to financial education and inclusion of the population.
ISA in cooperation with OECD: The insurance regulators via exchange of experiences to better financial literacy and protection of the insured
The exchange of experiences and good practices for the purpose of increased protection of the insured and continuous raising of the level of their financial education are the key topics discussed with the representatives of the insurance regulatory bodies from the SEE countries, the insurance industry and other included parties on the today’s session organized by the Macedonian Insurance Supervision Agency (ISA) and the Organization for Economic Cooperation and Development (OECD) with the support of the Ministry of Finance of The Kingdom of the Netherlands within the project for financial education.
Today’s online conference titled “Experiences and practices” organized in five sessions was attended by more than fifty participants from the country and SEE countries where experiences, results from the policy analyses, measures and tools used by the insurance regulators for protection of the insured were presented.
The effects from the activities for raising the level of financial education and inclusion of the population in the financial flows of the SEE countries were also discussed. At the event there was also a session about the effects imposed by the pandemic and the measures taken by the regulatory bodies for protection of the insured.
The protection of the rights of the consumers, together with the financial education and access to financial services is a basis for bigger financial inclusion. The protection of the consumers includes: securing accurate and timely information to the consumers for making decisions on the basis of information, non-existing, unfair and fraudulent practices in the contracts, as well as access to mechanisms for resolving violations of consumer rights.
The financial education and protection of consumers i.e. insured are activities prioritized by ISA and continuously taken within its competences for development of the insurance market and raising the awareness of the public about the insurance role. Furthermore, ISA pays special attention to encourage cooperation between the relevant institutions and cooperation with other instances by implementing educational programmes and activities for support and improvement of the financial literacy of the population. At international level, ISA actively participates in bilateral and multilateral projects for financial literacy and inclusion.
ISA in cooperation with other financial regulators: It is a strategic national document which identifies the goals of the regulatory bodies and recognizes the priorities for awarding and determining dynamics, measures and activities for raising the financial literacy of the population, their inclusion and protection of their rights deriving from using the spectrum of financial services, including insurance as well.
The highest amount for insurance of property of natural person is a family house insured in the amount of EUR 3.2 million.
The highest corporate policy issued in this country covers maximum damage up to the amount of EUR 1.26 billion. The maximum insured amount of Casco insurance of vehicles for covering damage is EUR 41 million and such insurance contract is concluded with enterprise for public transport of passengers. The policy with the highest insurance amount for payment of damage for private health insurance covers up to EUR 2.3 million for insurance of almost 800 employees.
The highest amount that can be disbursed for damage of insured property of natural person is MKD 198 million (EUR 3.2 million). The aforementioned insured property is a house – real estate owned by natural person. The official data from the Insurance Supervision Agency (ISA) for the first half of this year show that the insurance companies have over 128,000 active real estate insurance contracts concluded with natural persons.
The highest coverage of property damage in the corporate sector comes from a large company from the power sector. The maximum coverage under this insurance contract that the company may charge is MKD 77.65 billion (EUR 1.26 billion). The corporate sector has over 32,000 active property insurance contracts concluded by 30 June this year.
In accident insurance class, the maximum insured amount per active insurance contract that can be disbursed is MKD 4.26 billion (EUR 69.3 million). The aforementioned refers to collective insurance of over 8,500 employees. By the end of June there were 628,000 active insurance contracts concluded in this insurance class.
In private health insurance class the maximum insured amount per active insurance contract is MKD 142.9 million (EUR 2.3 million). This refers to collective insurance for serious illnesses of almost 800 employees in a public health institute. In this insurance class there were over 12,000 active insurance contracts concluded by the end of June, which provide private health insurance for over 38,000 persons.
The highest coverage for Casco insurance of motor vehicles is in the amount up to MKD 2.5 billion (EUR 41 million). The policy is concluded with a public transport enterprise. By the end of June there were 50.000 active insurance contracts for Casco insurance of motor vehicles concluded in this insurance class.
The most valuable cargo policy covers damage up to MKD 3.4 billion (EUR 5.6 million) for insurance of all parcels realized in the validity period of the insurance contract.
The policy with the maximum insured amount (prescribed by law) when it comes to mandatory car liability insurance covers damage up to MKD 93.4 million (EUR 1.5 million). The aforementioned policy is concluded by a company for transport of explosive materials insured against material and non-material damage. By 30 June there were over 611,000 active insurance contracts concluded in this insurance class.
The Insurance Supervision Agency (ISA) is an independent regulatory body which regulates the insurance market, supervises the operation of the insurance entities, takes care of the protection of the rights of the insured and contributes to financial education and inclusion of the population.
Citizens of life insurance collected 4.6 million EUR in six months
At the same time, citizens and companies (for their employees) invested 14.8 million EUR in life insurance policies, or higher by 9.6 percent than the same period in 2020.
Five insurance companies paid 281.3 million MKD (4.57 million EUR) for life insurance to their policyholders in the first six months of this year. Compared to the same period last year, the amounts paid (gross claims paid GCP), for life insurance collected by policyholders, increased by 42 percent or 1.36 million EUR, according to official data from the Insurance Supervision Agency (ISA).
Life insurance policies, depending on the terms of the contract, ie. policy, cover risks of death, disability, but can also often be a way of saving. In addition to the invested funds, the insured can also receive part of the yield (interest) of the invested funds.
The largest share in the total payment have life insurance policies where the insured receives part of the yield (interest) of the invested funds. On that basis, 245.9 million MKD (4 million EUR) were paid in the first half of the year.
It is noteworthy that in this period the companies paid 86.77 million MKD to insured persons who decided before the expiration of the agreed insurance period to withdraw their invested money (so-called “policy purchase”). Compared to the same period last year, this amount this year increased by 36 percent compared to the same period last year. In practice, purchasing policies can often happen if the insured gets better terms for investing in one of the competing life insurance companies.
In the rapidly growing life insurance products, the so-called “Unit Linked Insurance Plan”, when the insured accepts the risk of investing in shares of investment funds, tends to increase payments. For the first six months of this year, holders of such policies collected 10.46 million MKD (170,000 EUR), which is 91 higher than the same period in 2020.
In the first six months of this year, citizens and companies invested 908 million MKD (14.76 million EUR) or higher by 9.6 percent than the same period last year.
The Insurance Supervision Agency (ISA) is an independent regulatory body that regulates the insurance market, supervises the work of insurance entities, takes care of the protection of the rights of the insured and contributes to financial education and inclusion of the population.
Insurance Companies Have Paid 1.9mil. EUR in Hail and Ice Damages, 72% of the Value of All Agricultural Damage
Hail and ice are the most pronounced risks in agricultural insurance. During the first six months of this year, over 70% of the value of all paid damages in agriculture and livestock has been due to the consequences of these natural disasters. Since farmers acknowledge the hail and ice as the biggest dangers, they invest in insurance against these risks the most. For the first six months, the value of purchased policies that insure against hail and ice reached 5 million EUR or 26% more in comparison to the same period last year.
Farmers and stockbreeders have collected a total of 162 million MKD (2.63 million EUR) from damages covered by insurance policies for the first six months of this year. In the total amount of paid agricultural and livestock damages for destroyed crops, fruits and dead cattle, the payment of damages caused by hail and ice continuously dominates, according to the official data of the Insurance Supervision Agency (ISA).
The hail and ice are the biggest enemies of the farmers, they do the biggest damage
Damage caused by hail or ice has continuously the largest share in the amount of damages paid covered by agricultural insurance. For the first six months of these natural disasters, damages for destroyed crops and fruits have been paid, in a total value of 117.85 million MKD (1.9 million EUR). That is 72% of all paid damages in agriculture and livestock during this period. The statistics for the first half of the previous two years are similar. In 2020, farmers collected 99.5 million MKD (1.6 million EUR) or 74% for damages from hail and ice, and in 2019, 78 % of all paid damages in agriculture.
The total amount of damages collected by farmers from insurance companies for the first six months of this year is 162 million MKD (2.63 million EUR). In the same period last year, the amount of claims paid for agricultural insurance was lower by 22% and amounted to 132.4 million MKD (2.15 million EUR). In the first half of 2019, farmers collected 78.4 million MKD (1.27 million EUR) in damages.
What farmers usually insure
The total investments of farmers and stockbreeders in insurance for the first half of this year amount to 398.4 million MKD (6.5 million EUR). That is 20% more compared to the same period in 2020 when investments in crops, fruit and livestock insurance were 331 million MKD (5.38 million EUR). Continuity in the growth of investments is also recorded compared to 2019 when the value of agricultural insurance in the first half of the year amounted to 241.2 million MKD (3.92 million EUR).
The Insurance Supervision Agency (ISA) is an independent regulatory body that regulates the insurance market, supervises the work of insurance entities, takes care of the protection of the rights of the policy holders and contributes to financial education and inclusion of the population.
The financial regulators, the industry and the civic associations will jointly act for the purpose of increasing the financial literacy
A two-day workshop for understanding of the conditions and compliance of the activities that are to be taken by the regulatory bodies and the financial industry, with help provided by foreign partners, for the purpose of practical implementation of the first Strategy on Financial Literacy and Inclusion of the population
The implementation of the first National Strategy for Financial Education and Inclusion is progressing at a fast pace. In this context, yesterday and today (16 and 17 September 2021), the national financial regulators through the Coordinating Body for financial education and financial inclusion) are hosting a workshop in cooperation with the OECD International Network on Financial Education (OECD/INFE), the Netherlands’ Ministry of Finance (Constituency Program) and the MoneyWise Platform.
The first day addresses the implementation of the Strategy and looks into Coordinated Efforts to Strengthen Financial Literacy in North Macedonia. The second day will focus on digital financial services as a challenge in terms of financial literacy and digital delivery of financial education.
In addition to representatives of the financial regulators, the workshop also welcomes commercial banks, savings houses, pension companies, insurance companies, insurance intermediaries, investment funds management companies, brokerage houses, stock exchange, Central securities depositary, financial companies and other financial system participants. Civil sector representatives and associations, which have so far expressed interest and readiness to implement activities in the area of financial education and consumer protection, will also participate in the event.
“Bearing in mind the importance of financial education in a dynamic and innovative financial system, there is unquestioned need for an innovative and systemic approach based on our Strategy for financial education and financial inclusion. In general, the central banks together with other financial regulatory authorities have the leading role. The last survey on Financial literacy of adults in South East Europe done by OECD (2020) revealed that the National Bank of the Republic of North Macedonia is the most trusted among central banks in the region as provider of financial education. However, the active participation of other stakeholders, from the private and civil sector is more that welcomed to achieve this mission”, was pointed out by the Governor of the National Bank of the Republic of North Macedonia, Anita Angelovska-Bezhoska in the opening address.
„This past two years’ new goals were set up for the future. The pandemic helped to put the importance of investments in education into the focus of the society. There is no doubt that if we want to achieve inclusive growth we must invest in human capital, in education and higher qualification. Investments in human capital provide for better skills, contribute to improved productivity and accelerated economic growth, and lessen the poverty and inequality“, Deputy Minister of Finance, Dimitar Kovacevski pointed out, adding that only with joint efforts we can make a difference in making more educated society.
“I deeply believe that if there is good and profound system of financial education, and if the needs for financial services are clearly understood and articulated, then potential consumers of insurance and other financial services would face less risks of misconduct from financial operators and hence the number of complaints and dissatisfaction from finance service providers would become insignificantly low. Participants on the demand side of the insurance market need financial education. This education should be provided by all stakeholders who have same mutual objective.” – said the President of the Council of experts of the Insurance Supervision Agency, Krste Shajnoski.
„The modern world of finances – globalized, innovative, and with information noise, offers a variety of formal ways for individual financial education. However, better results can be achieved with an institutional approach. Thus, societies need a coordinated and active approach for higher financial literacy levels too. The new Code of Good Practices for Financial Education targets the financial education programs and activities that will be designed and implemented as tools to increase consumers’ financial literacy and capabilities. This will be done with the expectation that such programs and activities will facilitate better-informed decisions about using and managing financial services and risks and thus mitigate potential negative effects. The “Code” will establish all principles that will be applied with the implementation of the National Strategy for Financial Education of the population in our country by the public, private and civil sectors involved in this activity” – said Kiril Jovanovski, Commissioner, Security and Exchange Commission of the Republic of North Macedonia.
“In the new economic trends, when fintech services are increasingly part of our reality, there is a growing need to transform systems and digitize them so that higher levels of financial literacy will be a basic prerequisite for increasing understanding of the pension system and pension products. All this implies the need for our greater commitment to consumer protection activities. As a financial regulator we are actively involved in the overall process, especially in the part for protection of current and future members of the pension system and the analysis of the need to upgrade existing legislation and its harmonization with European standards in this area, where a special challenge for us is establishing supervision of the business practices of the pension entities with a clear focus on the protection of the rights of the members of the pension funds by increasing the transparency of the system, timeliness and accuracy in presenting the results of the system, i.e. providing the best service and product for the client.” – said Darko Sazdov, member of the Council of experts of MAPAS.
From the viewpoint of the Ministry of Finance of Netherlands, the current pandemic has again proven how crucial financial resilience is for citizens. Those who are financially vulnerable are the first to be affected by the economic consequences of the pandemic. Financial education is one key element in improving financial resilience of households. It is crucial to collaborate in order to truly help especially financially vulnerable citizens. There is a lot we can achieve together and learn from each other. As the NL Ministry of Finance, we have the privilege to be host to the Money Wise Platform. This platform is a unique collaboration between many different stakeholders that aim to improve financial fitness of Dutch citizens. The ministry also established a dedicated program for technical cooperation with our constituency countries at the IMF, World Bank and EBRD. In our project with the OECD, MoneyWise and the Constituency Program of the Ministry of Finance have teamed up to support constituency counties in enhancing financial literacy, like the stakeholders in North Macedonia are showing us today.
According to OECD, North Macedonia is to be congratulated for the adoption of its first National Strategy for Financial Education and Financial Inclusion and a Code of Good Practices on Financial Education. The OECD was pleased to support the development of these important initiatives, which testify to the long-term commitment to financial education and financial inclusion of all national stakeholders and in particular the National Bank.
The presentation of the results of the 2020 Survey on financial literacy of the adult population in South East Europe conducted by the OECD/INFE were presented, focusing on the results for our country. Special attention was paid to the issues and areas that will require intense activities in the coming period to advance financial literacy by applying relevant approaches recommended by the OECD. Furthermore, the workshop participants took part in an online survey assessing their readiness and needs to be involved in financial education in the country.
Yesterday, one of the sessions was dedicated to the key issue of the involvement of the private and civil society sector in financial education activities. It examined the OECD/INFE recommendations and guidelines, and the way in which they were adapted to the local context in the framework of the Code of Good Practice for Financial Education, recently adopted by the national financial regulators.
Financial inclusion and consumer protection will be discussed at the event today. A particular emphasis will be placed on the protection of financial consumers in the digital age, by presenting the OECD/INFE policy guidelines, particularly focusing on the expectations of financial regulators. Participants will also look into the trends that accelerated the digitization process during the COVID-19 pandemic. Further sessions will be dedicated to the role of digital financial literacy in supporting the users of financial services and products and on good financial education practices for digital financial services for the population.
The shared experiences and views, with active participation of experts from the OECD/INFE and the Netherlands, will contribute to the successful implementation of the first National Strategy for Financial Education and Financial Inclusion adopted in July this year, developed within the regional project coordinated by the OECD/INFE with the generous support of the Netherlands’ Ministry of Finance. The Strategy implementation has already begun, namely with the recent adoption of the Code of Good Practices for Financial Education.
Paid damages for private health insurance increased by 87.5% and reached EUR 1.5 million
In the first six months of the year the number of contracts on purchased private health insurance policies increased by 48%. The investments of the insured in such insurance reached EUR 3.8 million. In the first six months of the year, the insurance companies paid 87.5% more funds for reported damages compared to the same period in 2020.
The amount of the paid damages covered with private health insurance in the first six months increased by 87.5% and reached MKD 92.6 million (EUR 1.5 million). The official data of the Insurance Supervision Agency (ISA) show that at the same time the investments of citizens and companies in private health insurance increased by 38%, thus reaching MKD 232.5 million (EUR 3.8 million).
Data on paid damages and sold policies confirm that private health insurance, in the context of the current health pandemic, becomes quite popular and widely accepted by the insured (citizens and legal entities). At the same time, the amounts that the insured invest in private health insurance also increase for the purpose to ensure more qualitative health protection from the public health, which is not covered by the state budget and the state Health Insurance Fund.
In the first six months of the year the insurance companies selling private health insurance policies settled i.e. paid 9,144 damage claims of their insured. That is 68% more compared to the same period in the previous year when the insurance companies settled 5,432 damage claims. In the same period, 9,870 private health insurance policies were sold which is 46% more compared to the same period in 2020. For the first six months of this year only 2 complaints were submitted to ISA from dissatisfied insured for damage coverage upon private health insurance policy.
The amount of the paid damages for private health insurance reached 5% in the total amount of gross paid damages (GPD) for the first six months of this year. For this period the participation of paid damages for private health insurance reached 67% compared to the same period last year when this insurance class participated with 3% in the GPD.
The highest individual paid damage covered with private health insurance is MKD 610,000 (EUR 10,000).
Insurance Supervision Agency (ISA) is an independent regulatory body which regulates the insurance market, supervises the operation of the insurance entities, takes care of the protection of the rights of the insured and contributes to the financial education and inclusion of the population.
