The insurance market is growing more slowly/ Bonus-malus has reduced the average premium of TPLs

2026-06-26 18:46:00, Ekonomi CNA

The insurance market is growing more slowly/ Bonus-malus has reduced the average

The insurance market is growing at a slower pace this year. According to data from the Financial Supervisory Authority, for the 5-month period January-May, gross written premiums increased by 4.9% compared to the same period last year.

Growth is at similar and modest levels for both main segments. The non-Life market grew by 4.9%, on average, while the Life market grew by 5.5%. The overall market growth was negatively impacted by the further contraction in the very modest reinsurance activity.

The AFSA estimates that the market slowdown was significantly affected by the decrease in the average premium in compulsory motor third-party liability insurance (MTPL).

The average premium decreased by 2.12%, mainly due to the effects of the launch of the bonus-malus system for this product. Given that the vast majority of drivers have benefited from bonuses, however modest, this has been reflected in a decrease in the average premium and in a weaker growth of the market for this product. However, gross written premiums for TPL insurance remain on the rise, by 5.6% compared to a year earlier.

The other two mandatory motor insurance products (Green Card and Border), although with moderate weight, report a decline as a result of the facilitation of the movement of vehicles towards border countries.

Some of the voluntary insurance products are showing slightly better performance, but without fundamentally affecting the modest weight they have within the insurance market.

The main voluntary insurance product, fire and natural disaster insurance, increased by 9.5% compared to the previous year. Travel accident insurance, health insurance and civil liability insurance also showed positive performance.

The Life insurance market is also growing at a slower pace this year. The slowdown is mainly determined by the decline in some specific products, such as Group Life or Flexi Plan. The main product of the market, Debtor Life insurance, continues to grow at double-digit rates and is increasingly dominant in the structure of the Life market, with 82.5% of gross written premiums.

In terms of claims, this year's growth is significantly higher. In five months, the insurance market paid claims for a total value of 3.8 billion lek, up 15.9% compared to a year earlier. Claims have grown at particularly high rates in the Non-Life market, up 19% compared to a year earlier.

The increase is especially related to catastrophe insurance, a product where damages have increased by 211% compared to last year and which can be explained by the wave of floods that swept through several areas of the country in the first months of the year./ Monitor