Personal accident insurance was the largest category in the personal accident and health segment, accounting for 56 per cent of gross written premiums. However, the category registered a decline in the number of policies at a review-period (2009-2013) CAGR of -0.6 per cent. “A decline in the population and the size of the labour force exerted downward pressure on sales of accident insurance during the review period. Another factor behind the contraction of the market was that some insurance providers also provide single-premium accident insurance for long-term durations. This limits sales of new accident insurance policies,” said Deblina Mitra, analyst at Timetric.
Timetric predicts that personal accident insurance will grow over the forecast period; however, superior growth in health and travel insurance will reduce the market share of personal accident insurance.
Growth opportunities for health insurers also lie in the inadequacy of the Croatian public healthcare system in catering to the needs of an ageing population. The underdeveloped condition of the public healthcare system can be seen from the fact that in 2014, approximately 16,100 people aged 65 years and above accessed accommodation services. The state owned 23 per cent of these accommodation services as an institutional form of care for the elderly, and the rest belonged to private and non-profit organisations. Furthermore, Croatia’s public healthcare system is characterised by long waiting lists, limited palliative care and inadequate availability of informal care. “Demand for customised and specialised healthcare services has given rise to private healthcare facilities and an increase in demand for private health insurance,” concluded Mitra.