Citizens of Montenegro still arrange more property insurances than life insurances. Although the insurance premium is constantly increasing, Montenegro is still far from the EU standards. Insurance Supervision Agency has initiated the development of the strategy aimed at strengthening insurance culture in Montenegro and greater information of citizens regarding insurance advantages.
Director of the Insurance Supervision Agency, Ms Biljana Pantović, said that insurance market in our country was stable and was continuously growing and showing positive trends.
“In the first four months of the current year, total gross written premium has recorded 17,6% increase in comparison to the same period last year”, explained Ms Pantović.
Almost the same growth percentage has been recorded in life and non-life insurance.
“Gross written premium in non-life insurance amounted €25,1 million, which is 17,7% growth in comparison to the same period last year. Gross written premium in life insurance amounted €4,8 million and has recorded 17,1% increase”, pointed out Ms Pantović.
According to her, share of non-life insurance is still dominant – 83,9%.
Insurance companies in Montenegro provide citizens with the insurance against different, unforeseen circumstances: fire, thunder strike, floods and other types of natural disasters, thefts and robbery… They also provide insurance in the cases such as insufficient revenues in the old age or additional health protection”, says Ms Pantović.
“When we take into account all the risks we are faced with on a daily basis, citizens become aware of the need for greater protection level and that has positive affect on the premium growth. However, we still can’t talk about the expansion of insurance activities”, says Ms Pantović.
She points out that in comparison to developed countries, Montenegro is still very low as far as this segment is concerned.
“Gross written premium per capita amounted €2.030 in 2017 in EU Member States. In Montenegro it amounted €131,4. Still very low, but potentials for insurance development are huge, especially in the area of life insurance”, said Ms Pantović.
Price of the insurance product is determined by the risk or combination of risks covered.
In the forthcoming period, Ms Pantović expects growth in life insurance.
