BQK: Insurance sector marked high growth of activity

The Kosovo Central Bank (BQK) dropped the three-month economy assessment report for the first quarter of this year has estimated that the insurance sector marked a high growth of activity for the fourth year in a row despite the challenges facing the sector and the entire financial system in the country.

According to the BQC report, the assets of the insurance sector represented 2.9 per cent of all financial system assets in late March 2023.

The total asset value at the end of the river reached 289.9m euros, which saw annual growth rates of 15.5 per cent, continuing the double growth trend in the past four years (graphic 40). The expansion of the sector largely resulted from increased technical reserves, stemming from written priorities, as well as its own action capital and realised profits. In the context of assets, the most pronounced growth marked the category of deposits held in commercial banks, which are mainly in the form of long-term deposits. The second weight category -- the Kosovo Government's Value Letters -- marked increases in this quarter compared to the situation in March 2022”, the CEC report said.

Furthermore, it is said that the value of prices written in the first quarter of 2023 gold amounted to 34.2m euros, which represents an annual increase of 15.1 per cent.

According to them, the increase in written projections is mainly increasing in the descriptions of the category "axident and health" under voluntary security and a third-party engine awareness under mandatory security.

The “Dictible security operations continue to bear the highest weight of 53.2 per cent of the total non-life written claims. The increase in insurance cuts within the security framework of others and health (for 25.8 percent) is a positive signal for an increase in the number of citizens who own Scient Insurance. While the increase in mandatory insurance cuts reflects primarily the category of mandatory auto-responsibilities unjustly MTPLʹ, which marked increases to 10.2 per cent”, says the ECC's three-month economy assessment report.

On the other hand, the value of damages paid by insurance companies and the Coésovare Bureau of Insurance in the first quarter of 2023 amounted to 19.9m euros, which represents an annual increase of 35.0 per cent.

The insurance sector in the first quarter of 2023 realised profits worth 2.3m euros (0.4m euros in the same period a year ago).

The highest value of profits realised against last year came as a result of the highest value of revenues collected by written prims compared to the value of paying damages.