ZAGREB, July 1 (Hina) - Twenty-three insurance companies operated in Croatia in 2001, charging almost 5.1 billion kuna (EUR698.6 million) in gross premium. Only six recorded losses, while the others made 176.8 million kuna (EUR24.2
million) in profits.
ZAGREB, July 1 (Hina) - Twenty-three insurance companies operated
in Croatia in 2001, charging almost 5.1 billion kuna (EUR698.6
million) in gross premium. Only six recorded losses, while the
others made 176.8 million kuna (EUR24.2 million) in profits. #L#
These results were presented at Monday's session of the Croatian
Chamber of Commerce Association of Insurers.
The results show that life insurance premiums in Croatia lag behind
those in the European Union considerably.
Life insurance premiums in Croatia in 2001 accounted for 0.6
percent of the Gross Domestic Product, as against 5.9 percent in the
EU. The share of non-life insurance in Croatia's GDP in 2001 was 2.5
and in the EU 3.2 percent.
The most successful company last year was Croatia osiguranje, which
made 59 million kuna (EUR8.1 million). Euroherc follows with 50.7
million (EUR6.9 million), and Jadransko osiguranje with 33.4
million (EUR4.6 million) in profits.
The year 2001 was successful for the insurance business, which
recorded a 16 percent growth, HGK president Nadan Vidosevic said,
but added that events surrounding the privatisation of Croatia
osiguranje, the strongest domestic insurance company, would have a
significant impact on the market.
Vidosevic said that domestic companies had yet to fight for the life
insurance market. Croatia does not lag behind Europe much as
regards property insurance but the discrepancy regarding life
insurance is big, he said. The life insurance premium share in
Croatia is 18.1 percent, he said.
Speaking about insurance as a section of the financial market,
Zagreb Faculty of Economics professor Ivo Lovrinovic said Croatia
did not have a developed, clear, and consistent public debt policy,
which he said accounted for the lack of coordination between the
fiscal and monetary policies.
Croatia has a bank-dominated financial system and insurance
companies are always weaker than banks, said Lovrinovic. He added
that Croatian citizens were not investment-cultured and remained
bank-oriented. Domestic insurers should change such life insurance
investment habits, he said.
(hina) ha sb