1. The International Insurance Forum – IIF2013 “Motor insurance – The road towards profitability” MONTENEGRO Istanbul, March 2013.

2. Association - National Bureau of Montenegro Insurers Is established on 02 April 2007 by the Decision of the Assembly consisted of the representatives of 3 insurance companies Is established on 02 April 2007 by the Decision of the Assembly consisted of the representatives of 3 insurance companies Is a legal person founded for the purpose of pursuing common interests of the insurance companies performing compulsory transport insurance in the country Is a legal person founded for the purpose of pursuing common interests of the insurance companies performing compulsory transport insurance in the country The insurance company may perform compulsory insurance business only if it is a member of the Association The insurance company may perform compulsory insurance business only if it is a member of the Association The Association performs its operations through the following basic organizational parts: The Association performs its operations through the following basic organizational parts:  Guarantee fund;  Green Card Bureau;  Information Center.

3. Guarantee fund is liable for the settlement of the damages: caused by the use of a motor vehicle, aircraft, vessel or other means of transport for which the compulsory insurance contract has not been concluded; caused by the use of a motor vehicle, aircraft, vessel or other means of transport for which the compulsory insurance contract has not been concluded; due to death, injuries or impairment of health caused by the use of unknown motor vehicle, aircraft, vessel or other means of transport; due to death, injuries or impairment of health caused by the use of unknown motor vehicle, aircraft, vessel or other means of transport; caused by the use of motor vehicle, aircraft, vessel or other means of transport insured with the insurance company which ceased its operations or which is undergoing the bankruptcy and liquidation proceedings caused by the use of motor vehicle, aircraft, vessel or other means of transport insured with the insurance company which ceased its operations or which is undergoing the bankruptcy and liquidation proceedings National Bureau of Montenegro Insurers is recognized as a full member of International Green Card System starting from 01 February 2012. National Bureau of Montenegro Insurers acting as a Green Card Bureau guarantees: for the compensation of the damages caused abroad by the vehicle with Montenegrin registration plates; for the compensation of the damages caused abroad by the vehicle with Montenegrin registration plates; for the damages caused on the territory of Montenegro by the vehicle with foreign registration plates. for the damages caused on the territory of Montenegro by the vehicle with foreign registration plates.

4. Legislations LOW ON INSURANCE, Official Gazette of the Republic of Montenegro, No 78/06 of 22 December 2006, LOW ON INSURANCE, Official Gazette of the Republic of Montenegro, No 78/06 of 22 December 2006,Amendments 19/07 of 2 April 2007: Official Gazette of Montenegro, No 53/09 of 7 August 2009, 73/10 of 10 December 2010, 40/11 of 8 August 2011, 45/12 of 17 August 2012 LAW ON BANKRUPTCY AND LIQUIDATION OF INSURANCE COMPANIES, Official Gazette of Montenegro, no. 11/07 of 13 December 2007 LAW ON BANKRUPTCY AND LIQUIDATION OF INSURANCE COMPANIES, Official Gazette of Montenegro, no. 11/07 of 13 December 2007 LAW ON COMPULSORY TRAFFIC INSURANCE, Official Gazette of Montenegro, no. 44/12 of 9 August 2012 LAW ON COMPULSORY TRAFFIC INSURANCE, Official Gazette of Montenegro, no. 44/12 of 9 August 2012

5. MARKET OVERVIEW Number of insurance companies LIFE TOTAL NON-LIFE 12 57 YEAR 2011 201211 5 6 Capital structure 2011 2012* 44,989 mil € TOTAL SHAREHOLDERS CAPITAL DOMESTIC 6,566mil €(14,60%) FOREIGN 38,423 mil €(85,40%) 44,369 mil € 10,648 mil €(24,00%) 33,721 mil €(76,00%) *01.01.2012. – 30.09.2012.

6. Insurance Premium The first three companies The leading company 2011 72,36% of total premium 45,37 % of total premium Gross insurance premium 64,791,699.00 € 2012 66,817,737.58 € 71,28% of total premium 40,83% of total premium Written gross premium 20119,056 55,734 64,791 20129,457 57,35966,817 0,4011,6252,026 Year Life Non-Life Total mil EUR

7. Portfolio structure in 2012

8. Gross premium of life insurance companies in 2012 Insurance company Sum in € Grawe insurance4,685,915 Uniqa life insurance 1,574,896 Lovćen life insurance 1,411,886 Merkur insurance969,726 Wiener Stadtische640,411 Atlas Life175,164 TOTAL9,457,999

9. Gross premium of non-life insurance companies for 2012 Insurance company Sum in € Lovćen insurance 27,279,698 Sava Montenegro 10,872,823 Delta Generali insurance 9,481,022 Uniqa non-life insurance 7,813,748 Swiss insurance 1,912,449 TOTAL57,359,739

10. Motor Insurance Market Year MTPL Premium in €Index 201028.332.36290,96 201130.032.678106,00 201231.467.909104,78 Year Number of paid MTPL claims Amount of paid MTPL claims in € 20097.66015.130.067 20107.42712.300.260 20117.89712.644.491

11. MTPL premium in 2012 In structure of non-life gross premium the largest share has compulsory insurance in the precent of 49,73, and in structure of compulsory insurance premium still dominates participation of MTPL insurance premium in the precent of 94.69 * 01.01.2012. - 30.09.2012.

12. MTPL premium

13. Number of insured vehicles YearGrowth Index 20082009201020112012 ‘09/’0810/’09‘11/’10‘12/’11 225.130202.974183.169188.202190.49490,1590,24102,74101,22 The estimation of the number of uninsured vehicles is 5 %.

14. Tariff system Low on Compulsory Insurance in Traffic (Official Gazette No. 44/12) set a transitional period of five years for the liberalization of the market. Insurance Association is due to adopt new common tariffs for minimum MTPL according to the new limits of liability. It will be in use for the first five years. Implementation of the minimum MTPL premium shall be regularly monitored by Supervisor. After the expiry of these five years, insurance companies are obliged to set individiually their own tariffs.

15. Limits of Liability Current minimum limits of liability LAW ON COMPULSORY TRANSPORT INSURANCE from 2007 Type of vehiclePersonal injuries (per accident) Material damage (per accident) Buses and trucks250.000 €100.000 € Other categories of vehicle including unidentified vehicles 150.000 €80.000 € Vehicles transporting dangerous substances300.000 €150.000 €

16. New minimum limits of liability LAW ON COMPULSORY TRANSPORT INSURANCE from 2012 August 2013After august 2014August 2015 Type of vehicle Personal injuries Material damage Personal injuries Material damage Personal injuries Material damage Buses and trucks400.000 €200.000 €550.000 €300.000 €750.000 €500.000 € Other categories of vehicle including unidentified vehicles 250.000 €150.000 €400.000 €220.000 €550.000 €300.000 € Vehicles transporting dangerous substances 450.000 €250.000 €600.000 €400.000 €800.000 €550.000 €

17. General issues regarding settlement of bodily injuries claims In 2008 National Bureau of Montenegro Insurers has adopted common Criteria for the compensations of bodily injuries claims in order to avoid discrepancy in claims settlement between Insurance Companies and The Court. In 2008 National Bureau of Montenegro Insurers has adopted common Criteria for the compensations of bodily injuries claims in order to avoid discrepancy in claims settlement between Insurance Companies and The Court. Still different criteria are used by insurance companies in respect to those used by the Court. Still different criteria are used by insurance companies in respect to those used by the Court.Example: Compensation for pain and suffering if someone lose a close person, parents or spouse: according to criteria of Insurance Companies it is between 10,000€ -14,000€ per person in respect of 15,000€ – 20,000€ set by Court criteria. It is expected that compensations will rise as the limits of liability are increased. It is expected that compensations will rise as the limits of liability are increased..

18. Thank you for your attention! ASSOCIATION -NATIONAL BUREAU OF MONTENEGRO INSURERS PC EUROPINT, Bulevar Svetog Petra Cetinjskog 1A/II 81000 Podgorica, Montenegro