MOTOR VEHICLE INSURANCE 2015

Transcription

1 MOTOR VEHICLE INSURANCE 215

2 MOTOR VEHICLE INSURANCE 215 Ljubljana, April 215

3 Published by: SLOVENIAN INSURANCE ASSOCIATION Železna cesta 14, PO Box 2512 SI - 1 LJUBLJANA Telephone: (+386 1) Fax: (+386 1) Website: info@zav-zdruzenje.si Responsible person: Drago Cotar, Director MOTOR VEHICLE INSURANCE 215 SIA, Ljubljana 215 Text, tables and graphs prepared by: Mateja Lamovšek Tanja Trampuž Tjaša Korbar Translation: Amidas, d. o. o. Production: Pegaz International, d. o. o., Ljubljana Design: Luka Mancini, MSc All rights reserved. The use of the data in full or in part is permitted only on the condition that the source is cited. ISSN

4 CONTENTS Methodological explanations... 4 Statistical indicators, units of measure and abbreviations GENERAL INFORMATION ON MOTOR VEHICLES Motor vehicles in Slovenia... 8 Comparison of Slovenia with selected countries MOTOR THIRD-PARTY LIABILITY INSURANCE (MTPLI) Number of MTPLI contracts and claims paid Gross MTPLI premiums written and claims paid Average MTPLI premium and claim paid MTPLI claim frequency MTPLI claims ratio Proportion of MTPLI in non-life insurance and proportion of MTPLI acquisition costs MTPLI density Rank and proportion of MTPLI in total insurance premiums International claims Guarantee Fund Compensation Body...35 MOTOR VEHICLE CASCO INSURANCE (MCI) Number of MCI contracts and claims paid Gross MCI premiums written and claims paid Average MCI premium and claim paid MCI claim frequency MCI claims ratio Proportion of MCI in non-life insurance and proportion of MCI acquisition costs MCI density Rank and proportion of MCI in total insurance premiums CAR OWNER AND DRIVER ACCIDENT INSURANCE (MTPLI+) CHRONOLOGY OF MAJOR EVENTS BY MOTOR INSURANCE IN SLOVENIA AND ABROAD SINCE DATA SOURCES...57

5 Methodological explanations The publication Motor Vehicle Insurance 215 is based on annual data that the SIA has obtained from its members. According to estimates, the data contained herein cover 99.9% of the Slovenian insurance market. If other data sources are used, this is stated separately in the text, tables and graphs. Data collection was completed on 2 March 215. Where statistical data for 214 were not yet available at the time this publication went to press, the time series ends at 213. The time series refers to the ten-year period. Unless otherwise stated, all data in this publication refer to Slovenia. The unit of currency used in this publication is the euro. The exchange rate used to convert the domestic currency to euros for the period prior to the introduction of the euro is EUR 1 = SIT This conversion is in line with the system of conversion used at the SORS. Some tables show amounts in EUR thousand or EUR million, which is specifically indicated. Growth rates are calculated as the ratio of data for the selected year to data for the previous year, without taking into account inflation. In the observed period there are some clear discrepancies in the data that arose as a result of changes to legislation and consequent changes to the methodology of counting and disclosing data. In order to ensure comparability of data in the publication, vans are counted as passenger cars throughout the period. Major milestones and prominent values in the time sequence of data on registered road vehicles in Slovenia (source: SORS): registration of old unregistered tractors in 25, changed categorisation of vehicles in March 26, transition to a new register of road motor vehicles in March 26, there was no extended registration in 27 for inactive tractors, tractor trailers and caravans, decline in temporary de-registration of motorcycles after 27 (partly because insurance companies changed insurance conditions in that year). Statistical data associated with motor vehicle insurance that are provided by insurance companies and are shown for the categories of MTPLI and MCI relate to all self-powered motor vehicles in terms of the following categorisation used by the insurance companies: PS1 passenger cars PS2 lorries PS3 busses PS4 towing vehicles PS5 special motor vehicles PS6 motorcycles PS7 trailers PS8 foreign-registered vehicles PS9 vehicles being repaired at car mechanic and restoration workshops and workshops for cleaning and greasing vehicles PS1 work vehicles PS11 rolling stock PS12 vans PS13 special forms of insurance

6 For our statistical overview, we placed motor vehicles in Slovenia in the following ten categories in line with the SORS categorisation (source: SORS): passenger car a motor vehicle with at least four wheels intended for the carriage of persons which has no more than eight seats in addition to the driver s seat; special purpose passenger car vehicle designed for special purposes and not for the carriage of persons (firefighting vehicle, rescue and emergency vehicle, hearse, driving school vehicle, race vehicle and other passenger vehicles not mentioned elsewhere); lorry non-articulated goods vehicle; special purpose lorry goods and other vehicle intended for special operations requiring special adaptation of the superstructure and/or special equipment (tanks, livestock vehicle, concrete mixer, temperature-controlled goods vehicle, forest vehicle, dumper, self-loader, hazardous goods vehicle, etc.); towing vehicle road goods vehicle intended solely or primarily for towing other road vehicles without their own motor power (mainly semi-trailers); service vehicle adapted goods vehicle with equipment installed for performing certain tasks and not intended for the carriage of goods, and which can achieve speeds of more than 3 km/h on a flat road (firefighting vehicle, rescue and emergency vehicle, mobile crane, selfpowered road rollers, bulldozers with metal wheels or tracks, film, radio and television production vehicle, mobile library, towing vehicle for vehicles needing repair and other road vehicles not mentioned elsewhere); bus motor vehicle for the carriage of persons with more than eight seats in addition to the driver s seat; motorcycle two-wheeled motor vehicle with or without sidecar, or three-wheeled vehicle, with a working internal combustion engine capacity exceeding 5 cc or for which the design speed exceeds 45 km/h; this includes four-wheelers whose unladen weight does not exceed 4 kg (or 55 kg for goods transportation vehicles); moped two, three or four-wheeled vehicle whose internal combustion engine capacity does not exceed 5 cc and whose maximum design speed on a flat road does not exceed 45 km/h; agricultural tractor motor vehicle intended solely or primarily for agricultural purposes which may be used on roads open to public traffic or not. Statistical indicators, units of measure and abbreviations... not available - no occurrence of event * comment cc cubic centimeter h hour kg kilogram km kilometer m million % percentage EUR euro GDP gross domestic product LI life insurance MCI motor casco insurance MTPLI motor third-party liability insurance MTPLI+ car owner and driver accident insurance NLI non-life insurance 4 5 EEA European Economic Area EU European Union Eurostat European Statistical Office HIIS Health Insurance Institute of Slovenia (i.e. Zavod za zdravstveno zavarovanje Slovenije) IE Insurance Europe MNZ Ministry of the Interior (i.e. Ministrstvo za notranje zadeve) MZI Ministry of Infrastructure (i.e. Ministrstvo za infrastrukturo) OJ Official Journal SIA Slovenian Insurance Association SIB Slovenian Insurance Bureau SORS Statistical Office of the Republic of Slovenia UNECE United Nations Economic Commission for Europe

7 GENERAL INFORMATION ON MOTOR VEHICLES

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9 Motor vehicles in Slovenia Following several years of growth, Slovenia has been characterised by a severe economic crisis during the last decade. That crisis has persisted since 28 and resulted in the deterioration of macroeconomic indicators for the country. A large number of companies have gone bankrupt, the number of unemployed persons is significantly higher than it was ten years ago, and the government is faced with a major budget deficit. The situation began to reverse, however, in 214. Economic growth was positive, while average household income was up slightly after declining for five years. A total of 12% of households managed without difficulties, an increase of 3 percentage points on the previous year. In this overall context, the work time required to purchase a car continues to shorten. The economic situation in Slovenia has led to a sharp increase in the total number of registered motor vehicles. That increase has been seen over the entire observed period, which indicates that motor vehicles are of great importance to the Slovenian population. The number of motor vehicles rose by 17% or more than 2, between 25 to 214, from 1.2 million to 1.4 million. Cars are by far the most popular means of transport. The convenience and speed of cars and poorly developed public road transportation contribute to the fact that more than three quarters of the population use cars for their everyday transportation needs. After declining for several years, public road transportation recorded a slight increase. Public rail traffic has recorded growth for several years, but accounts for a smaller proportion. A total of 16 million passengers were carried in rail traffic in 213, compared with 25 million in public road transportation and nearly 48 million in public city transportation. Given the proportion of passenger transport accounted for by cars, those numbers would be significantly higher still if the latter were used. WORKING TIME REQUIRED TO PURCHASE A PASSENGER CAR (Renault Clio) 3,5 3, 2,5 h 2, 1,5 1, 5 Source: SORS * estimation * The proportion of all motor vehicles accounted for by cars has fluctuated at a similar level over the entire period, and stood at 78% in 214 (together with special purpose passenger cars). The number of passenger cars has grown by 1, or 12% since 25. Growth was sharp until 28, and then slowed somewhat, most likely as the result of the economic crisis. According to the SORS statistics, road vehicles include trailers, which account for around 3%. However, this publication does not take them into account, as they are not self-powered and are therefore not classed as motor vehicles. Alongside passenger cars, the largest group of motor vehicles is agricultural tractors. The number of the latter is constantly on the rise, and stood at 14,294 in 214 or 8% of the total. These are followed by lorries, which together with towing vehicles, service vehicles and special purpose lorries, stood at 93,141 or 7% of the total, motorcycles (49,936 or 4%) and mopeds (45,86 or 3%). There are no data available yet for the year in question for categories with less than 1, vehicles.

10 The numbers of motor vehicles in specific categories increased evenly over the observed period until 28. Growth declined following the outbreak of the economic crisis. A slight decline in the number of vehicles has been recorded in certain categories since that time. The graph below shows a relatively stable dynamic of growth over time for all motor vehicles together, passenger cars, lorries and motorcycles. The latter stand out in 27 due to no cancellation of registration during the winter. The same year is recorded a decline in the number of tractors due to elimination of inactive vehicles. 8 9 NUMBER OF MOTOR VEHICLES BY CATEGORY (as at 31 December) BREAKDOWN OF MOTOR VEHICLES (as at 31 December) MOTOR VEHICLES (TOTAL) 1,17,66 1,2,979 1,255,661 1,38,963 1,332,314 1,34,646 1,351,76 1,356,881 1,358,9 1,372,751 Passenger cars 96,213 98,261 1,14,122 1,45,183 1,58,858 1,61,646 1,66,495 1,66,28 1,63,795 1,76,961* Special purpose passenger cars 4,568 5,36 6,5 6,653 7,69 7,286 7,614 7,939 8,127 1,4 Lorries 53,646 57,51 62,635 67,585 68,122 68,32 68,635 68,195 68,264 93,141** 1,2 Special purpose lorries 6,588 5,913 6,256 6,653 6,627 6,81 6,873 6,91 7,36 Towing vehicles 6,213 7,168 8,677 9,671 8,884 8,986 9,136 9,312 9,638 Service vehicles 3,431 3,56 3,95 4,528 4,824 5,112 5,35 5,437 5,622 Number in thousands 1, 8 6 Busses 2,255 2,277 2,33 2,378 2,394 2,4 2,422 2,41 2,465 2,559 4 Motorcycles 14,473 18,81 34,162 41,612 46,185 48,686 49,887 5,999 51,936 49,936 2 Mopeds 34,198 34,392 37,331 4,384 42,243 42,322 42,296 42,11 41,5 45,86 Agricultural tractors 85,21 86,34 8,193 84,316 87,18 89,87 92,413 97,559 1,967 14,294 * Number includes also special purpose passenger cars. Passenger cars Lorries Motorcycles Agricultural tractors Others Source: MZI, SORS ** Number includes also special purpose lorries, towing and service vehicles. Source: MZI, SORS

11 Natural persons own the majority of vehicles that are intended mainly for private use. The proportion they account for has not changed significantly over the observed period. In 213 natural persons registered 95% of all passenger cars (94% in 23), 97% of motorcycles and tractors and 95% of mopeds. In the past they also owned a significant number of vehicles intended primarily for commercial use, but that use has declined considerably over the last ten years. In 213 the majority of the aforementioned vehicles were owned by legal persons who registered 67% of lorries, 76% of special purpose lorries, 93% of towing vehicles, 9% of service vehicles, 93% of busses and 56% of special purpose passenger cars. Those proportions have remained unchanged in recent years. Natural persons significantly reduced their use of vehicles intended primarily for commercial use since 23. They now own significantly more special purpose passenger cars and motorcycles, the numbers of which have risen by 29% and 345% respectively over the last ten years. Legal persons have also increased the number of vehicles they own over the same period. Growth stands out in particular in the number of towing vehicles, which rose by 274%, lorries (up 92%) and service vehicles (up 85%). NUMBER OF MOTOR VEHICLES IN USE BY NATURAL AND LEGAL PERSONS IN 23 AND 213 (as at 31 December) MOTOR VEHICLES (TOTAL) Passenger cars Special purpose passenger cars Lorries Special purpose lorries Towing vehicles Service vehicles Busses Motorcycles Mopeds Agricultural tractors 23 Natural persons 994, , ,871 2,984 2, ,313 28,53 66,436 Legal persons 96,123 54,649 3,15 23,82 3,175 2,39 2,739 1, ,814 1,941 TOTAL 1,9,29 91,429 4,32 48,673 6,159 4,969 3,69 2,19 12,48 3,344 68, Natural persons 1,225,17 1,8,793 3,612 22,621 1, ,388 39,62 97,429 Legal persons 133,883 55,2 4,515 45,643 5,349 8,937 5,67 2,296 1,548 1,988 3,538 TOTAL 1,358,9 1,63,795 8,127 68,264 7,36 9,638 5,622 2,465 51,936 41,5 1,967 Source: SORS GROWTH IN NUMBER OF MOTOR VEHICLES IN USE BY NATURAL AND LEGAL PERSONS BETWEEN 23 AND 213 (as at 31 December) (in %) % MOTOR VEHICLES (TOTAL) Passenger cars Special purpose passenger cars Lorries Special purpose lorries Towing vehicles Service vehicles Busses Motorcycles Mopeds Agricultural tractors Natural persons Legal persons Source: SORS

12 Increasingly stringent environmental and safety standards for vehicles have contributed to more advanced technology that is more environmentally friendly. Such requirements must be met by all new cars. Thus, the average age of passenger cars also reflects their environmental efficiency. The fact is that the quality of cars is improving, thus extending their useful lives. The economic crisis has also likely contributed to this over the last several years. Increasingly older vehicles are thus being registered, leading to a corresponding change in the age structure. At the end of 213 a third of cars were at least 12 years old, only 12% were less than 3 years old and just 3% were less than 5 years old. First registrations of cars accounted for 6% or 66,2, of which three quarters (51,968) were new vehicles. Over the last ten years, the highest number of first registrations of passenger cars was recorded in 28 (94,81 of all passenger cars, of which 71,37 were new), while the fewest were recorded in 212 (63,84 of all passenger cars, of which 49,7 were new). NUMBER OF MOTOR VEHICLES BY AGE IN 213 (as at 31 December) TOTAL Proportion in total motor vehicles (in %) Under 3 years 3-5 years 6-8 years 9-11 years 12 years and more MOTOR VEHICLES (TOTAL) 1,358, , , ,217 22, ,846 Proportion of motor vehicles by age (in %) Passenger cars 1,63, ,719 19, , , ,566 Agricultural tractors 1, ,364 6,195 5,485 3,221 8,72 Lorries 68, ,23 13,994 16,1 1,379 16,867 Motorcycles 51, ,728 1,58 11,844 8,56 15,728 Mopeds 41, ,587 8,298 6,858 3,553 16,754 Towing vehicles 9, ,551 2,713 2, Special purpose passenger cars 8, ,198 1,726 2, ,229 Special purpose lorries 7, ,187 1, ,59 Service vehicles 5, ,244 1, ,896 Busses 2, Source: SORS 1 11 The age structure of passenger cars has deteriorated significantly over the last twenty years. Only 65,344 passenger cars were registered in Slovenia in 1993, which is nearly 4% less than in 213. At that time, however, 22% of all cars were less than 3 years old, while 51% were less than 5 years old. A similar pattern applies to other vehicle categories, in which there are clear structural differences. The oldest registered vehicles are tractors, 8% of which were older than 12 years at the end of 213. Some 41% of motorcycles and 37% of special purpose lorries were also included in the aforementioned age category. Around one third of all other vehicle categories fall into the oldest age category, the exception being towing vehicles at 7.6%. Among the latter, more than a quarter are less than 3 years old, while more than half are less than 5 years old, making the towing vehicle fleet the youngest of all categories observed. The proportion of other vehicle types accounted for by vehicles up to 5 years old fluctuates at around one third. In addition to tractors, which represent the oldest vehicles over the entire observed period, the proportion of vehicles less than 3 years old was lowest in the motorcycle category (11%). PROPORTION OF PASSENGER CARS BY AGE IN 1993, 23 AND 213 (as at 31 December) (in %) % Under 3 years 3-5 years 6-8 years 9-11 years 12 years and more Source: SORS

13 The standard of living has improved continuously since Slovenia s independence. Parallel to this was an increase in the motorisation rate, with 33 passenger cars per 1, inhabitants in 1992, 481 in 25 and 523 last year (i.e. 73% more than in 1992 and 9% more than in 25). Following a rapid start during the first ten years after independence, growth in the motorisation rate has slowed and continued to stagnate until the outbreak of the economic crisis. In terms of the number of registered cars, each Slovenian household has an average of 1.3 cars, and every second inhabitant of Slovenia is a car owner. Despite the growing motorisation rate, traffic safety and the traffic culture on Slovenian roads have improved significantly, in part due to several revisions to traffic safety regulations. Through expanded social efforts over the last ten years, Slovenia is one of the European countries that has succeeded in halving various statistical data regarding traffic accidents. There were 18,232 traffic accidents on Slovenian roads in 214, down 42% on 25 and down one half on Of the aforementioned accidents, 97 were fatal, which is 6% less than a decade ago. The number of traffic accident fatalities has also fallen, from 493 in 1993 and 258 in 25 to 18 last year. A total of 247 per million inhabitants died from traffic accidents in 1993, while five times fewer or 52 people per million died in 214. Each year there are fewer traffic accidents resulting in physical injury or even just material damage. However, the decline in the number of traffic fatalities and physical injuries has slowed significantly since 21. According to the SORS data for the last ten years, the majority of traffic accidents in Slovenia occur on Fridays, most frequently at around 3 pm. ROAD TRAFFIC ACCIDENTS AND PEOPLE IN ACCIDENTS* BREAKDOWN OF ROAD TRAFFIC ACCIDENTS BY LOCATION Number of road traffic accidents 31,94 31,569 3,41 22,783 2,597 21,347 22,913 22,35 18,94 18,232 Of which involving road fatalities Of which involving bodily injury 1,79 1,99 11,151 8,738 8,435 7,433 7,89 6,742 6,426 6,156 Of which involving material damage 2,785 2,346 18,987 13,845 12,8 13,787 15,695 15,171 12,362 11,979 Number of people in accidents 6,937 62,43 58,959 44,139 39,64 4,348 42,15 39,971 34,481 Of which killed** Of which seriously injured 1,266 1,22 1,263 1,68 1, Of which slightly injured 13,48 14,855 14,774 11,341 11,82 9,451 8,754 8,3 8,34 7,377 Of which without injuries 46,365 46,66 42,629 31,516 27,319 29,894 32,291 3,693 25,614 Road fatalities per 1m inhabitants * Accidents reported to the police in 24 hours from the event. ** Any person who died immediately or within 3 days as a consequence of a road accident. Source: MNZ, SORS Number in thousands Motorway In rural areas In urban areas Source: SORS

14 BASIC INFORMATION ON MOTOR INSURANCE number Population (as at 1 January) 1,997,59 2,3,358 2,1,377 2,25,866 2,32,362 2,46,976 2,5,189 2,55,496 2,58,821 2,61,85 Motorisation rate* EURm Motor insurance premiums MTPLI premiums MCI premiums MTPLI+ premiums GDP** 29,227 31,555 35,153 37,951 36,166 36,22 36,868 36,6 36,144 37,246 % Proportion of motor insurance premiums in GDP Proportion of MTPLI premiums in GDP Proportion of MCI premiums in GDP Proportion of MTPLI+ premiums in GDP * Number of passenger cars per 1, inhabitants. ** Based on the methodological framework of European System of Accounts (ESA 21). Source: MNZ, MZI, SIA, SORS PROPORTION OF PREMIUMS IN GDP IN 24 AND 214 (insurance penetration) (in %) % , SORS MTPLI + MCI MTPLI MCI MTPLI+ TOTAL PREMIUM NLI LI

15 In line with the motorisation rate and the growing number of registered motor vehicles, there has also been growth in gross premiums written for motor insurance. At the beginning of the 199s, premiums grew sharply, rising nearly tenfold by 21, but then started declining at the same pace and reached the 25 level in 214, at EUR 448 million. Like life insurance, motor insurance was quick to feel the impact of the economic crisis. Two decades ago the majority of premium was written for MTPLI; ten years ago premium written for MCI was half of what it is today. The importance of the aforementioned insurance has increased in recent times: premium written for MCI exceeded premium written for MTPLI for the first time last year. Total premium written for motor insurance has declined during the economic crisis, both in nominal terms and as a proportion of Slovenian GDP. At 1.2%, the latter was down.1 percentage point on 1993, although that figure has fluctuated sharply over the entire period. In contrast, insurance penetration for all types of insurance increased slowly until 26. Gross insurance premiums as a proportion of GDP has fluctuated since then, and last year reached its lowest level over the last ten years, at 5.2%. Motor insurance is sold most frequently in Slovenia through agents, who accounted for an average of 8% of sales over the last ten years, and 88% in 213. The proportion of sales via the agent network has gradually increased over the entire observed period, despite the development of alternative methods of selling. Agency sales are followed by over-the-counter sales, although just 6% of motor insurance was sold in this way in 213. The proportion of other types of sales is negligible. Motor insurance is an important segment in terms of sales via agents, as it accounts for an average of one third of their insurance sales. There has been a sharp fall in the proportion of motor insurance in sales through insurance brokers over the last ten years. There was, however, a notable increase in sales via this channel in 213, to 2% of all insurance sold. BREAKDOWN OF MOTOR INSURANCE PREMIUMS BY DISTRIBUTION CHANNEL (in %) Employed Counter sales Telephone, internet Agents Internal External Brokers Bankassurance Other TOTAL PROPORTION OF MOTOR INSURANCE PREMIUMS IN A SPECIFIC DISTRIBUTION CHANNEL (in %) Employed Counter sales Telephone, internet Agents Internal External Brokers Bankassurance Other TOTAL

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17 Comparison of Slovenia with selected countries 1. Motorisation rate Various calculations can be used for the motorisation rate. Thus, data in various sources for the same year and same country differ. Taking into account the same calculation method, it is evident that Slovenia is highly motorised compared with selected countries. In terms of the number of passenger cars per 1, inhabitants, Slovenia had 519 in 212, putting it ahead of France (496), Belgium (487), the Netherlands (468) and Greece (465) and far ahead of Croatia and Hungary. On the other hand, the motorisation rate was higher in Italy at 621 cars, 12 more than Slovenia, while the level was also higher in Austria and Germany. The increase in the motorisation rate in countries of the former Eastern Bloc is clear compared with more developed Western countries. The motorisation rate rose in Croatia by 131% from 1992 to 212, compared with 51% in Hungary and 71% in Slovenia. Greece stands out in this regard: although an EU Member State for many years, it was considerably less developed than Western European countries 2 years ago. It, too, is now close to the European average in terms of the motorisation rate. Broad social efforts in Europe have contributed to an improvement in traffic safety, despite the increased number of vehicles. There has been a parallel decline in both the number of traffic accidents and the number of fatal traffic accidents. Slovenia is comparable with the EU average in this regard. Only accidents involving motorcyclist stand out: the average number of fatalities has fluctuated or fallen gradually over the entire observed period in some countries (Austria, Germany and the Netherlands). MOTORISATION RATE BY SELECTED COUNTRY IN 1992 AND 212 ITALY AUSTRIA GERMANY SLOVENIA FRANCE BELGIUM NETHERLANDS GREECE CROATIA HUNGARY * ** 468** 465** Growth rate 212/1992 (in %) * Number of passenger cars in 21. ** Number of passenger cars in 211. Source: Eurostat, SORS, UNECE Number Italy Austria Germany Slovenia France Belgium Netherlands Greece Croatia Hungary

18 2. Motor insurance premiums Motor vehicle registration is mandatory in Europe. The motorisation rate has thus risen with the increase in the number of registered vehicles resulting, of course in an increase in motor insurance premiums written. Thus, smaller countries can record even higher written premiums than larger, but less motorised countries. According to data from the European insurance association, Insurance Europe (IE), premiums from motor insurance in the period from 24 to 213 grew at different rates in the observed countries. The majority of countries experienced an interim decline that was short-lived in developed countries. In other countries, that decline has persisted since outbreak of the global economic crisis. The latter did not have a significant impact on total written premiums in Europe overall, as the majority of premiums are generated by large Western European countries. MOTOR INSURANCE PREMIUMS* (in EURm) IE 123, ,29 127, , , , , ,85 131, ,53 GERMANY 22,54 22,5 21,221 2,8 2,372 2,57 2,158 2,887 21,989 23,26 FRANCE 17,623 17,86 17,729 17,73 17,878 17,836 18,311 18,921 19,476 19,7 ITALY 21,232 21,352 21,612 21,524 2,845 2,126 19,863 2,685 2,224 18,676 NETHERLANDS 4,581 4,565 4,662 4,669 4,631 4,539 4,635 4,587 4,5 4,375 BELGIUM 2,931 2,983 3,34 3,89 3,144 3,28 3,331 3,471 3,537 3,579 AUSTRIA 2,745 2,841 2,883 2,884 2,853 2,818 2,824 2,875 2,947 3,12 GREECE 1,147 1,218 1,231 1,592 1,65 1,881 1,954 1,827 1,55 1,343 HUNGARY CROATIA SLOVENIA** * Without data of branches of foreign companies. ** Total premium from statistical forms ST-3 and ST-1. Source: IE MOTOR INUSRANCE PREMIUMS GROWTH BETWEEN 23 AND 213 (in %) % IE Germany France Italy Netherlands Belgium Austria Greece Hungary Croatia Slovenia Source: IE

19 3. Motor insurance density Growth in motor insurance premiums per capita in Slovenia depends on the economic situation. At EUR 225, insurance density in Slovenia in 213 was at the level recorded in 25 as the result of a fall in the aforementioned indicator since 29. This figure puts Slovenia ahead of Greece, Croatia and Hungary, and ahead of the average for IE member countries. A higher car insurance premium per capita was collected in 213 in Austria (EUR 356), Belgium, Italy, France, Germany and the Netherlands. Of the countries shown, Hungary stands out for having an average of just EUR 49 spent on car insurance, which is 4.6 times less than in Slovenia and 7.3 times less than in Austria. Following the rapid growth recorded in the 199s by newly established countries, growth in insurance density has slowed. From 25 to 213, Croatia (27%) and Greece (16%) recorded the highest growth, while only three countries recorded a decline: Italy by 15%, the Netherlands by 7% and Hungary by 4%. Over the last year, the aforementioned indicator has declined in six of the ten countries observed. MOTOR INSURANCE PREMIUMS PER CAPITA* (insurance density) (in EUR) AUSTRIA BELGIUM ITALY FRANCE GERMANY NETHERLANDS SLOVENIA** IE GREECE CROATIA HUNGARY * Without data of branches of foreign companies. ** Total premium from statistical forms ST-3 and ST-1. Source: Eurostat, IE, SORS MOTOR INSURANCE DENSITY GROWTH BETWEEN 23 AND 213 (in %) % Austria Belgium Italy France Germany Netherlands Slovenia IE Greece Croatia Hungary Source: Eurostat, IE, SORS

20 4. Motor insurance premiums per employee A comparison of insurance density and motor insurance premiums per insurance employee for selected countries shows an entirely different picture. Greece is among the worst in terms of the former and is actually second in terms of the latter. In the ten countries observed, Slovenia ranks ahead of only Croatia and Hungary, which at EUR 2,397 generates 16 times less premium per insurance employee than Italy. The indicator for the latter is two times higher than all other countries, while Italy also enjoys the highest total (life and non-life) insurance premiums per insurance employee. In 213 Slovenian insurance companies generated an average of EUR 7,772 in motor insurance premiums per insurance employee, nearly half of the European average. The dynamic of this indicator differed by country: it grew relatively evenly in the Netherlands, Belgium, France, Austria and Germany, but in other countries it showed a marked decline after initial growth. Thus, motor insurance premiums per insurance employee were lower in Italy, Croatia and Hungary in 213 than in 24. In Slovenia the aforementioned indicator improved by 6.6%. MOTOR INSURANCE PREMIUMS PER EMPLOYEE* (in EUR) ITALY 52,941 53,482 54,38 46,51 44,511 42,488 42,96 43,568 42,388 38,96 GREECE 12,74 12,821 13,678 17,689 18,333 2,9 21,711 22,838 19,375 16,788 BELGIUM 11,96 12,427 12,774 12,845 12,938 13,387 14,58 14,516 14,823 15,126 IE 11,599 12,27 12,779 12,824 12,143 11,859 13,258 14,14 14,188 14,13 FRANCE 12,77 12,429 12,333 12,298 12,313 12,76 12,414 12,828 13,142 13,392 AUSTRIA 1,361 1,816 1,965 1,815 1,747 1,542 1,641 11,146 11,294 11,53 GERMANY 9,346 9,432 9,42 9,52 9,418 9,264 9,315 9,692 1,27 1,936 NETHERLANDS 7,158 7,246 7,519 7,531 7,718 7,693 8,132 8,191 8,333 8,413 SLOVENIA 7,293 7,758 8,67 8,615 8,775 9,13 9,145 8,867 8,281 7,772 CROATIA 6,123 6,14 5,762 5,534 5,269 4,81 4,619 4,396 4,154 4,136 HUNGARY 3,74 3,48 3,551 3,51 3,28 3,274 2,912 2,233 2,439 2,397 * Without data of branches of foreign companies. Source: IE GROWTH IN MOTOR INSURANCE PREMIUMS PER EMPLOYEE BETWEEN 23 AND 213 (in %) % Italy Greece Belgium IE France Austria Germany Netherlands Slovenia Croatia Hungary Source: IE

21 5. Proportion of motor insurance premiums in non-life insurance premiums Motor insurance represents one of the most important forms of insurance in the majority of observed countries, as indicated by the high proportion of total non-life insurance premiums accounted for by total MTPLI and MCI premiums. In Slovenia that proportion stood at 33.1% in 213, ranking it fifth among the selected countries. After maintaining a constant level a decade ago, the proportion accounted for by the aforementioned insurance types has fallen slightly in recent years. The European average has also fallen evenly. As a category, motor vehicle insurance is predominant among all non-life insurance types in Greece (63.8%), Croatia (55.6%) and Italy (55.4%). The opposite is true in the Netherlands, where the proportion of motor insurance fell sharply in 26, primarily as the result of strong growth in non-life insurance due to the privatisation of the health system and development of health insurance. PROPORTION OF MOTOR INSURANCE PREMIUMS IN NON-LIFE INSURANCE PREMIUMS* (in %) GREECE CROATIA ITALY HUNGARY SLOVENIA** BELGIUM AUSTRIA IE FRANCE GERMANY NETHERLANDS*** * Without data of branches of foreign companies. ** Total premium from statistical forms ST-3 and ST-1. *** Decline in 26 is a result of high growth of health insurance as a consequence of privatisation of health system at that time. Source: IE GROWTH IN PROPORTION OF MOTOR INSURANCE PREMIUMS IN NON-LIFE INSURANCE PREMIUMS BETWEEN 23 AND 213 (in %) % Greece Croatia Italy Hungary Slovenia Belgium Austria IE France Germany Netherlands Source: IE

22 6. Insurance penetration The breakdown of motor insurance premiums as a proportion of the GDP of individual countries is entirely different. With an insurance penetration rate of 1.3% in 213, Slovenia leads ahead of Italy and Croatia, while the smallest proportion was in the Netherlands (.7%) and Hungary (.5%). Taking into account motor insurance premiums as a proportion of total non-life insurance, motor vehicle insurance is an important insurance class in Slovenia in terms of volume and economic position, although the insurance penetration rate in the observed period fluctuated and at the end fell again to a level comparable to 15 years ago. Motor insurance as a proportion of GDP is falling gradually in the selected countries, which is also evident for the European average, which has declined by.2 percentage points since 24 to stand at 16%. The largest decline was recorded by Hungary, where that proportion more than halved between 24 and 213. Greece stands out on the other side as the only observed country where the insurance penetration rate has risen over the last ten years. PROPORTION OF MOTOR INSURANCE PREMIUMS IN GDP* (insurance penetration) (in %) SLOVENIA** ITALY CROATIA AUSTRIA FRANCE BELGIUM IE*** GERMANY GREECE NETHERLANDS HUNGARY * Without data of branches of foreign companies. ** Total premium from statistical forms ST-3 and ST-1. *** Not based on the methodological framework of European System of Accounts (ESA 21) yet. Source: Eurostat, IE, SORS 2 21 MOTOR INSURANCE PENETRATION GROWTH BETWEEN 23 AND 213 (in %) % Slovenia Italy Croatia Austria France Belgium IE Germany Greece Netherlands Hungary Source: Eurostat, IE, SORS

23 MOTOR THIRD-PARTY LIABILITY INSURANCE (MTPLI) INSURANCE COMPANIES PROVIDING MTPLI Adriatic Slovenica, Zavarovalna družba d. d. Allianz zavarovalnica, podružnica Ljubljana ERGO zavarovalnica, podružnica v Sloveniji GENERALI zavarovalnica, d. d. GRAWE Zavarovalnica, d. d. Zavarovalnica Maribor, d. d. Zavarovalnica Tilia, d. d. Zavarovalnica Triglav, d. d.

24

25 1. Number of MTPLI contracts and claims paid The number of underwritten contracts regularly exceeds the number of registered vehicles. The main reason for this is temporary insurance, which is included in the aggregate. Similar to a year earlier, the number of insurance contracts was down again last year to stand just above the level recorded in 29. At almost 1 million underwritten insurance contracts, that number is 18% higher than a decade ago and 4% higher than in The previous period of economic expansion was accompanied by constant growth in the number of insurance contracts, which lasted until 21 when growth reached its highest level (of 8%), followed by a gradual decline. Average year-on-year growth in the number of insurance contracts was positive during the observed period (1.9%), while negative growth of 2.6% was recorded in claims. The sharpest decline in the number of claims of 1% was recorded in 21, while a similar figure was recorded in 212. The number of insurance contracts has been 3 times greater than the number of claims in recent years. There were 4,457 claims in That figure then rose, but has fallen again over the last decade. NUMBER OF MTPLI CONTRACTS AND CLAIMS PAID Number of contracts 1,349,593 1,421,782 1,489,641 1,541,43 1,546,221 1,67,717 1,616,487 1,633,667 1,623,73 1,586,672 Number of claims paid 64,71 66,369 65,161 63,168 67,871 6,749 57,466 51,91 53,377 52,524 2,4 2,2 2, Number in thousands 1,8 1,6 1,4 1,2 1, Number of contracts Number of claims paid

26 2. Gross MTPLI premiums written and claims paid Gross MTPLI premiums written fell again in 214. Premiums recorded a fivefold increase from 1992, when they totalled EUR 4,7 million, but were down nearly 7% on the previous year to stand at EUR 22.8 million in 214. Premiums grew evenly until the outbreak of the crisis in 29, when they began to decline rapidly and reached the level recorded in 22 last year. Average annual growth in gross premiums written was 2% over the last ten years, while average growth in gross claims paid was 3%. The largest declines in gross claims paid were recorded in 21 and 211. At the beginning of the 199s, gross claims paid were nearly equal to premiums. Later, the absolute amount of gross claims paid increasingly lagged behind the amount of gross premiums written. The difference between them, however, has been diminishing gradually again over the last five years. Premiums were 32% higher than claims paid in 1992, and 68% higher in MTPLI PREMIUMS AND CLAIMS PAID (in EUR) Premiums 297,111,254 31,772, ,893,83 329,84, ,368, ,124,59 277,714,87 258,957, ,911,443 22,782,443 Claims paid 17,454, ,45,55 177,464,38 18,6,995 18,216, ,39, ,673,34 14,892, ,184, ,114, EURm Premiums Claims paid

27 3. Average MTPLI premium and claim paid The average MTPLI premium has fallen constantly over the last ten years to stand at EUR 139 at the end of the observed period, slightly higher than the figure recorded in 21. While average premium rose at an average year-on-year rate of 8% between 1992 and 214, it has fallen at an annual rate of 4% since 25 when it reached its highest level. Similar to the average premium, the average claim paid under MTPLI rose evenly until 25, but subsequently recorded variable growth. Average year-on-year growth in claims paid was.3% over the last ten years. The average claim paid was EUR 2,496 in 214, four times more than in 1992 and 5% less than in 25. The average claim paid is almost 15 times higher than the amount of the average premium. AVERAGE MTPLI PREMIUM AND CLAIM PAID (in EUR) Average premium Average claim paid 2,634 2,532 2,723 2,851 2,655 2,723 2,639 2,715 2,645 2,496 2,8 2,6 2,4 2,2 2, 1,8 EUR 1,6 1,4 Average premium Average claim paid 1,2 1,

28 4. MTPLI claim frequency This indicator demonstrates the relationship between the number of claims paid and the number of insurance contracts. Data on the number of insurance contracts includes shortterm insurance, for which reason the presented results for claim frequency over the entire period are lower than they would be otherwise. The graph shows a clear trend of decline over the last ten years with minor fluctuations, as the aforementioned indicator approaches the value recorded at the beginning of the 199s. At 3.3% in 214, the value of the indicator is actually lower than it was in 1992, when it stood at 3.6%, and 45% lower than the value recorded in MTPLI CLAIM FREQUENCY (in %) Claim frequency % 3 2 1

29 5. MTPLI claims ratio The claims ratio is one of the most important indicators of success for an individual insurance class. The paid claims ratio, calculated as the ratio of claims paid to premiums, has not changed significantly since 25 and has averaged 56.1%, the worst ratio being recorded the last two years. Since the SIA has made statistical observations, the worst ratio was recorded in 1996 (85.6%), while best ratio was recorded in 26 (54.1%). The incurred claims ratio typically indicates a worse situation, as the calculation of the latter also takes into account unearned premiums, insurance technical provisions and costs. After reaching its highest value of 69% in 25, the incurred claims ratio, has fluctuated over the entire observed period, yet still showed a downward trend and in 212 reached its best value (43.4%) since Slovenia s independence. The incurred claims ratio was at its worst level in 1996 (11.5%). MTPLI CLAIMS RATIO (in %) Paid claims ratio Incurred claims ratio % 7 Paid claims ratio Incurred claims ratio

30 6. Proportion of MTPLI in non-life insurance and proportion of MTPLI acquisition costs Motor insurance is one of the most important classes of insurance on the Slovenian insurance market. Aimed at insuring the owners of road motor vehicles against liability for damage or injury caused to third parties, it has accounted for an average of 21% or more than one fifth of total non-life insurance premiums written over the last ten years. That proportion is declining steadily at an annual rate of around 1.5 percentage points, and stood at slightly less than 16% last year, the lowest level since 1992 (32%). The reason lies in the development of other forms of insurance, in particular health insurance. Since 25, the proportion of non-life insurance accounted for by MTPLI premiums has regularly exceeded the proportion of non-life insurance claims accounted for by claims paid for MTPLI. The former is 4 percentage points higher on average, while the proportion of claims paid was higher during the 199s. A reversal in the growth trend has also been seen here. The proportion of claims paid was just under 14% in 214, down 4% on 25 and down by one half on the proportion recorded two decades ago. Following dynamic growth in the 199s and a subsequent decline, the proportion of premiums accounted for by MTPLI acquisition costs has grown steadily since 26. Last year it reached its highest level since 1995 (16.1%) PROPORTION OF MTPLI IN NON-LIFE INSURANCE AND PROPORTION OF MTPLI ACQUISITION COSTS (in %) Proportion of MTPLI in non-life insurance premiums Proportion of MTPLI in non-life insurance claims paid Proportion of MTPLI acquisition costs % 15 Proportion of MTPLI in non-life insurance premiums Proportion of MTPLI in non-life insurance claims paid Proportion of MTPLI acquisition costs 1 5

31 7. MTPLI density Economic growth in Slovenia also had a positive impact on growth in MTPLI premiums per capita. The latter recorded growth until 28 when it reached its peak in the period since Slovenia s independence. Motor insurance was among the first forms of insurance to record a drop in premiums after the outbreak of the economic crisis. At the same time, the population continued to grow, resulting in an annual decrease in MTPLI density of around EUR 1 over the last six years. Insurance density amounted to EUR 17 per capita last year, which is five times greater than in The average value of this indicator in the observed period is EUR MTPLI PREMIUMS PER CAPITA (insurance density) (in EUR) MTPLI premiums per capita , SORS EUR

32 8. Rank and proportion of MTPLI in total insurance premiums In terms of the volume and proportion of insurance for owners of road motor vehicles against liability for damage or injury caused to third parties, the importance of MTPLI with respect to the entire insurance portfolio has declined steadily during the observed period. After holding the leading position in the portfolio at the beginning of the 199s, motor insurance now lags behind life and health insurance due to the development of the aforementioned forms of insurance. Taking into account the life insurance portfolio, MTPLI mostly held third place over the last ten years, accounting for an average of 15% of the entire portfolio. That proportion had fallen to just 11% by RANK AND PROPORTION OF MTPLI IN TOTAL INSURANCE PREMIUMS Rank of MTPLI in total insurance premiums* Proportion of MTPLI in total insurance premiums (in %) * Life insurance group is considered as an insurance type. PROPORTION OF MTPLI IN TOTAL INSURANCE PREMIUMS (in %) 2 %

33 9. International claims After the SIB was accepted in 1992 as a full member of the Council of Bureaux (the international organisation responsible for managing and administering the Green Card System), the Green Card Bureau started collecting statistical data on international claims. The Green Card Bureau segregates data on active international claims (claims caused in Slovenia by motor vehicles bearing foreign registration plates of other countries included in the Green Card System) and all other types of international claims (passive international claims in the Green Card System and active and passive international claims in the Protection of Visitors scheme). In all types of international claims, we have found that the largest number of claims are dealt with among partners from neighbouring countries: Italy, Austria, Croatia, Hungary and additionally Germany. For the SIA and its partners, the most important partners in terms of number of claims include those from Central European countries and from Bosnia and Herzegovina. The number of claims in the Protection of Visitors scheme has risen over the entire period, while growth in the number of claims in the Green Card System fluctuates. In the last year there were 1,8 fewer claims in which accidents in Slovenia were caused by motor vehicles bearing foreign registration plates of other countries included in the Green Card System than two decades ago, and around 582 less than in 25. There were 1,16 more claims than ten years ago in which the policyholders of SIA members caused damage in other countries included in the Green Card System. In the Protection of Visitors scheme the number of active international claims has increased by half in the last decade and the number of passive international claims has doubled. ACTIVE INTERNATIONAL CLAIMS IN THE GREEN CARD SYSTEM (claims caused in Slovenia by motor vehicles bearing registration plates of other green card countries) Year Number of claims Number of claims by country of registration of motor vehicle that caused an accident (top 5) ,32 HR I - 41 A D H ,397 HR I A D - 3 H ,438 I HR A - 34 D - 33 H ,248 I A HR D H ,111 I A D HR - 23 H ,174 I A HR D H ,12 I A D HR - 26 H ,115 I A D HR H ,898 I A D HR - 19 RO ,842 I HR - 24 A D H PASSIVE INTERNATIONAL CLAIMS IN THE GREEN CARD SYSTEM (claims caused in other green card countries by insured of SIA member companies) Year Number of claims Number of claims by country of accident caused by insured of Slovenian insurance companies (top 5) ,24 I HR A D BIH ,54 I - 1,8 A HR D H ,811 I - 1,215 A HR D BIH ,87 I - 2,291 A - 1,258 D - 1,156 HR - 1,112 BIH ,163 I - 1,78 A - 99 D HR BIH ,39 A - 1,14 I - 1,4 D HR - 64 CH ,572 I - 1,182 D - 1,94 A - 1,75 HR BIH ,994 A - 1,66 D - 1,19 I HR - 68 BIH ,249 A - 1,225 D - 1,145 I HR BIH ,256 A - 1,181 D - 1,12 I - 1,35 HR BIH - 338