Today Dutch insurer Achmea gave a Notice of Arbitration to the
government of the Slovak Republic. The notice opens a new arbitration
procedure between Achmea and the Slovak Republic with regard to the
plans of the Slovak government to expropriate private health insurers.
The notice is given pursuant to art. 3 of the United Nations Commission
on International Trade Law Arbitration Rules of 1976 and art. 8 of the
Investment Treaty between the Kingdom of The Netherlands and the Slovak
Slovakia has lost the drawn out case lodged against it by health
insurance company UNION after PM Robert FICO banned private health
insurers from making profits under his first government in 2008. The
International Court of Arbitration presided over the case and ruled that
the Slovak Republic would have to pay the Dutch owner of health insurer
UNION, the company ACHMEA, some EUR 22 million in compensation and EUR 3
million in arbitration costs.
The International Court of Arbitration ruled in favor of the health insurance company UNION, a health insurance subsidiary of the Dutch insurer ACHMEA, following its legal action started against Slovakia. The insurer claimed the violation of the investments protection agreements when PM Robert Fico, during his first mandate, decided to ban private insurers from making profits. The Court decided that the Slovak Republic will have to pay ACHMEA about EUR 22 million in compensation for the loss of profit and another EUR 3 million in arbitration costs.
The two private health insurance companies currently operating in Slovakia will have to leave the market next year, as the government approved a plan to reinstate a single public health-insurer system starting 2014 in order "to stop the inflow of funds to private provider", Bloomberg reports.
The Slovak insurance market grew by 0.9% in the first six months of 2012, according to industries figures published by SLASPO (Slovak Insurance Association). The value of premiums amounted to EUR 1.09 billion in 1H2012, up EUR 9.5 million in absolute value, compared with January-June 2011.
Gross premiums written by the Slovak Insurance Association (SLASPO) insurers decreased by 0.75% on the year to EUR 581.72 million in the first quarter of 2012, recently figures published by SLASPO showed. During the analyzed period, 23 SLASPO members operated in the profile market.
Slovakia's prime minister Robert Fico plans to reduce national
healthcare to a single state-owned insurer by 2014, and this would mean
the nationalisation of two private health insurers or buying them.
Last year, Slovak insurance market totaled EUR 2.04 billion, registering an increase by 1.3%, according to the financial figures published by the National Bank of Slovakia (NBS). Previous, SLASPO - the Slovak Insurers' Association, reported a 2.04% y-o-y growth, up to EUR 2.11 billion.
2011 was a year of modest growth for the Slovak insurance market. All in all, the marked reported a 2.04% y-o-y growth, up to EUR 2.11 billion, according Slaspo - the Slovak insurers' association. Given the legal status of five companies, which are Slaspo members but are operating in Slovakia based on the right of establishment principle, the supervising authorities' data are shown a slightly lower GWP value, of EUR 2.04 billion. However, differences between the two sources are insignificant in relation to the total results and are consistent in terms of general trend.
At a special ceremony, Gunter GEYER, CEO of VIENNA Insurance Group,
received an honorary doctorate from the University of Economics in
Bratislava. "I am extremely honored to receive this doctorate. Following
Slovakia's dynamic development over the past 20 years has been a
fascinating experience, and I am very proud to have played my part in
it," said Gunter GEYER.
GENERALI Slovensko recorded more than 100,000 insurance claims for 2011,
of which almost 40 % comprised damage in motor insurance. The total paid
indemnity accounted for almost EUR 102 million, announced GENERALI PPF
Slovak insurance market grew by 2.8% y-o-y in 3Q2011 in terms of gross written premiums, the Slovak Insurance Association (SLASPO) reported. During the analyzed period, 24 SLASPO members operated in the profile market. These companies showed a total insurance premium of EUR 1.6 billion.
Slovak Association of Insurance brokers declared ALLIANZ - Slovenska the best motor insurer at the 2011 edition of SIBAF Awards. Mitsui Sumitomo Insurance Europe was declared best insurer for industrial risks insurance.