NBS: 8-percent Deductions Won’t Shake Insurers

NBS. (Stock photo by TASR)

Bratislava, November 24 (TASR) – The expansion of 8-percent state levies to cover all non-life insurance policies, due to concern only new contracts as of January 2017, won’t affect the stability of insurance companies, the Slovak central bank (NBS) stated on Thursday.

Parliament earlier this week adopted a bill to that effect, dropping an original clause on introducing the deduction even for existing insurance contracts.

“We’ve revised our impact analysis. We can now observe that the legislation in this shape won’t affect the financial stability of the insurance sector and the financial market at large,” said NBS financial market supervision department director Vladimir Dvoracek.

Nevertheless, Dvoracek conceded that the 8-percent levy will probably lead to an increase in premiums. “This element hasn’t been removed,” he added.

Until the end of the year only mandatory car insurance is subject to 8-percent deductions.