Former Yugoslav Republic of Macedonia

Following a high GDP growth rate of 5.2% in the first half of 2011, in the third and fourth quarter of 2011 the Macedonian economy faced the consequences of the debt crisis in certain countries of the euro area. Economic growth at the end of the year was slowed down by reduced export demands from EU member states, Macedonia's strongest economic and strategic partners. The estimated GDP growth was 3.0%. The Macedonian government is pursuing a healthy, integrated macroeconomic policy, is maintaining low public debt, while taking precautions to maintain the stable financial system in the country. The National Bank of the Republic of Macedonia does not anticipate the aggravation of the debt crisis in the euro area to have a significant effect on bank liquidity or on the financial system as a whole. In 2011 the Former Yugoslav Republic of Macedonia managed to maintain the stable exchange rate of the dinar and a low inflation rate of 3.7%. These measures will be carried out in the next year as well.

Increased risks from the second half of 2011 will affect development in 2012. The GDP growth trend was too weak for achieving the country's basic macroeconomic goals, such as restructuring of the economy, decreasing the unemployment rate and increasing the standard of living. The most recent projections, however, show a GDP growth rate between 3 and 3.5% at the utmost. Unemployment rate is high at 30% and the standard of living is among the lowest in Europe.

2011 Main Macroeconomic Indicators


2.1 million

2011 Growth of GDP (estimate)


2011 GDP (estimate)

USD 10.3 billion

2011 GDP per capita (estimate)

USD 5,012

2011 Inflation rate (retail prices)(estimate)


Source: IMF, World Economic Outlook, September 2011

Insurance market

The majority of 15 insurance companies were foreign owned (81% of the total equity of the insurance sector). In Macedonia 11 insurance companies were non-life and 4 were life insurance companies. One of them held a reinsurance licence and, at the same time, offered non-life insurance products. Also operating were 17 insurance brokerage firms and 5 insurance agencies. The five biggest insurers operating in the highly concentrated insurance market booked over 60% of total premium. Due to the structure of their activity the market concentration was particularly high in the segments of life insurance and reinsurance.

Insurance companies wrote MKD 6.8 billion in premium, which represented an increase of 5.0% over 2010. Non-life insurance premium accounted for 92.7% of the total premium in the market. Non-life insurance premium rose by 3.0%, while life insurance premium increased by 40.2%.

Despite the drop in written premium, Triglav Osiguruvanje remained the market leader in Macedonia. In 2011 it had a 19.7% market share in non-life insurance (in 2010 the market share was 21.7%). It was followed by Eurolink and Sava Tabak, with a 11.4% and 11.3% market share respectively.

Premium structure in the insurance market of the Former Yugoslav Republic of Macedonia


Share in the insurance market of the Former Yugoslav Republic of Macedonia


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