Premiums as well as profits of insurers will stagnate
Underwritten insurance premiums as well as profits of the insurance sector will stagnate this year, the sector’s managers expect. Combined with ever-increasing capital requirements and new regulatory burdens, this may lead to further market consolidation (larger insurers will buy smaller ones), and some insurers may transform from fully fledged insurer to branches of foreign insurers. The managers expect motor insurance prices to rise. The sector will also have to cope with the new 8% tax on non-life insurance this year.