July 21 (SeeNews) – Slovenia’s biggest insurer, Zavarovalnica Triglav [LJE:ZVTG]plans to stop offering supplemental health insurance products in the case from the start of 2024, it said.
“On July 20, 2023, the Act Amending the Health Care and Health Insurance Act entered into force, ending the uncertainty regarding changes to the supplemental health insurance system in Slovenia. As of January 1, 2024, supplemental health insurance will be abolished in its current form, which means that the Triglav Group will no longer provide supplemental health insurance products,” the company said in a filing with the Ljubljana Stock Exchange on Thursday.
Triglav supports changes to the public healthcare system in Slovenia and has included them in its strategic development activities and plans, but the way the changes are being implemented is unexpected, the insurer noted.
The group’s insurance activity will continue to be strategically focused on complementary health insurance, which it sells and develops as commercial insurance products in the Adria region market, it added.
The Slovenian government adopted in April a decree on setting the maximum price of supplemental health insurance premium to apply until the supplementary health insurance is reformed based on amendments to the Healthcare and Health Insurance Act.
The decree introduced the immediate regulation of supplemental health insurance prices, obliging Triglav to continue implementing them until they are abolished with the adoption of amendments to the Healthcare and Health Insurance Act. If the decree continues to apply until the end of 2023, it is likely that the decrease in profit for 2023 will be higher and will stand at around 40%.
In May, Triglav said it estimates that the group’s planned profit before tax for 2023, estimated at between 95 million euros ($106 million) and 110 million euros, may decrease by around 25–40% if supplemental health insurance is abolished on September 1, as originally planned.
In 2022, health insurance accounted for 15% of Triglav’s total written premium, whereas its contribution to the group’s total profit in recent years has been limited and was negative in 2022.
($ = 0.89712 euros)
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