Despite growth faster than the EU average, the Croatian insurance market lags behind

In the past year, positive progress has been made in our market both in the number of policies (+3 percent) and in the gross premium written (+9.92 percent), but there is still a significant gap between potential risks and social reality in key insurance segments – property, health, and pension systems – in relation to the level and penetration of insurance. This was emphasized by Slaven Dobrić, Chairman of the Management Board of the Croatian Insurance Bureau, at the twelfth edition of the Croatian Insurance Days 2025.

– Climate risks must be viewed as the greatest challenges for business models and market stability,” emphasized Ante Žigman, Chairman of the Management Board of Hanfa, warning that climate risks are no longer a topic of the future, but of the present, and that physical risks are penetrating the financial system through numerous channels, creating new challenges, especially in the insurance sector. “More and more companies are getting involved in natural disaster insurance, but households and entrepreneurs remain poorly insured, especially in less developed counties. When damages dictate the price of insurance, the issue of resilience to risks becomes crucial for both insurers and the wider community,” said Žigman.

The Croatian Insurance Days brought together insurance professionals, under the high patronage of the President of the Republic of Croatia and the Ministry of Finance of the Republic of Croatia, organized by the Croatian Insurance Bureau (HUO) and partners. The leading professional event for insurers was opened by Leon Žulj, Director of the Directorate for State-Owned Companies, Concessions, and State Aid, and Velibor Mačkić, envoy of the President of the Republic of Croatia.

The keynote lecture on the first day of the conference was delivered by Davor Tomašković, CEO of Croatia osiguranje, on the topic of Structural Challenges of the Croatian Insurance Market. Tomašković emphasized that the Croatian insurance market is experiencing growth faster than the EU average, but still lags in terms of market penetration and profitability, and that among the key challenges are high distribution costs, low profitability in the corporate segment, and rising claims costs. The aggregator channel, which is growing more than 30 percent annually, agency and broker commissions that are up to 40 percent higher than in the CEE region, constantly rising costs of car replacement parts alongside auto insurance premiums at 2013 levels, and the fact that medical service costs can exceed premium growth, for example, of supplementary health insurance by up to four times, are key structural challenges for the insurance market in Croatia.

– The Croatian insurance market has significant potential for value increase, but decisive changes are needed. Distribution costs, premiums misaligned with claims costs, and lower profitability in the corporate segment necessitate the need for business model adjustments. It is time for a structured approach to ensure the long-term sustainability and competitiveness of the sector,” concluded Davor Tomašković.

Strategic reflections and views on changes in the industry due to new trends were shared on the first panel by Vilma Učeta Duzlevska, CEO of Triglav osiguranje, Marijana Jakovac, CEO of Allianz Hrvatska, Tamara Rendić, CEO of Wiener osiguranje Vienna Insurance Group, and Mario Carini, CEO of Generali osiguranja.

Carini highlighted on the panel that ‘Croatia faces a significant protection gap, which represents a challenge but also an opportunity for our industry to demonstrate its solidity and innovative potential to its clients’. – The increasing frequency and severity of natural disasters, as well as the rise in cyber attacks, are examples of risks that are becoming increasingly relevant, emphasizing the need for a continuous focus on protection and financial literacy in the market. Such risks also require significant investments in new skills and technology. In this context, a strong focus on protection is at the very core of our new Group and local strategy: Lifetime partner 27: Promoting excellence,” said Carini.

The insurance sector in Croatia, like in the rest of the EU, faces challenges of digitalization, regulatory changes, and climate risks, which require adjustments to our services and processes, added Jankovac. – There is a need to focus on developing innovative and personalized products that will better meet the needs of today’s clients. Continuous investment in technology is essential to improve digital infrastructure and optimize the customer experience, thereby increasing customer satisfaction. Collaboration with technology partners opens new opportunities for creating advanced solutions that enhance our competitiveness. Sustainable business models are key to reducing the ecological footprint and supporting the community, which further strengthens customer trust. Profitability is the foundation of our business, and strategic investments in technology and human resources ensure long-term growth. Croatia still lags behind the EU average in insurance penetration, which represents significant growth potential through market education and improving the availability of insurance products. Transparency and accountability to clients must necessarily remain at the center of our strategies. The transformation of the insurance sector requires bold steps and a clear vision to achieve long-term success. We are confident that through innovation and collaboration, we will create additional value for our clients and shareholders,” said Jankovac.

Rendić reflected on the importance of industry resilience through a consistent strategy and growth aligned with European standards. – Resilience to changes in the insurance industry is not built solely through quick reactions, but through a consistent strategy, clear priorities, and leadership with integrity. Our focus is on stable growth and compliance with high European standards, especially in the context of regulation and sustainability. At the same time, we invest in digitalization and the development of new competencies, but always prioritizing the relationships we build with clients, partners, and employees. In a time that simultaneously demands both stability and readiness for change, we believe that it is precisely this ability – to make responsible decisions and maintain a focus on employee well-being – that distinguishes us and drives us forward,” emphasized Rendić.

Similar views were expressed by Učeta Duzlevska, highlighting that at Triglav osiguranje, digital transformation is not just a matter of technology – it is a matter of corporate culture, vision, and responsibility. – We believe that real digital changes occur when we change our way of thinking from within, not just the tools from the outside, and for this reason, we are launching a program for data, AI, and digital literacy called Triglav digital alpinists. We are proud to develop such a comprehensive and structured program through which, in addition to raising technological competencies, we will also work on the critical thinking and creativity skills of our employees. We understand changes and are ready to lead them. That is why at Triglav we currently have a quality balance of young teams with experience in technology who help all other employees to properly utilize these technologies, and through investment in data systems and BI/AI platforms, Triglav systematically builds the foundations of a new era of insurance. Moreover, digitalization is not limited to just ‘technical’ development but also to transforming the customer experience – through digital channels, through our new i.triglav mobile application that provides clients with an overview of all policies and investments, or through our fast and efficient online claims reporting. Technology is based on data, but its meaning only comes to life when it enables clients to easily, quickly, and stress-free resolve what is important to them,” she explained.

Equally important was the topic of the conference on digital transformation, while reflections on how the industry adapts to modern technologies, automation, and the use of artificial intelligence in risk assessment, claims processing, and customer support were shared by Slavena Dobrić, member of the Management Board of Allianz Hrvatska, Mirko Talajić, Director of the BI, AI, and Digitalization Sector at Triglav osiguranje, and Ana Zovko, Executive Director for Digital Business and IT at Croatia osiguranje, emphasizing the importance of a strategic approach to digital initiatives, as well as continuous investment in people and knowledge.

On preparing for a challenging future in the context of climate change, which increasingly results in extreme weather events, experiences were exchanged by experts from Croatia, Austria, and Slovenia – Christian Eltner, Secretary General of the Association of Insurance Companies of Austria (VVO), Alan Jelovečki, member of the Management Board of Wiener osiguranje Vienna Insurance Group, Uroš Lorenčič, member of the Management Board of Zavarovalnica Sava d.d., and Vesna Sanjković, member of the Management Board of Croatia osiguranje d.d. The need for improving risk assessment models, insurance coverage, and joint action by the industry, the state, and citizens to strengthen resilience, reduce damages, and ensure the sustainability of insurance systems was emphasized.

The panel discussion was preceded by a presentation by Vojtěch Hlavatý, a climate change expert, and Richard Šálek, Director of Business Development at Intermap Technologies, who presented advanced models and technologies for quantifying risks related to climate change and natural disasters.

The final day of the conference will place additional emphasis on topics related to motor vehicle claims processing, while the conference program will conclude with a highly relevant presentation dedicated to combating fraud in insurance.