Insurance plays a crucial role in protecting citizens and property from various risks. However, data shows that Montenegrins tend to prioritize the protection of material assets over their own lives. According to the Insurance Supervision Agency, non-life insurance policies dominate the market, with mandatory auto liability insurance leading the way, primarily due to the legal requirement during vehicle registration. Meanwhile, interest in life insurance remains relatively low.
In 2024, the total gross premium for both life and non-life insurance in Montenegro amounted to approximately €134 million. Of this, around €106 million was for non-life insurance, while life insurance accounted for €27.8 million, as reported by the Insurance Supervision Agency.
At the end of 2024, Montenegro had a total of 778,944 insurance policies, with 644,072 for non-life insurance and 132,872 for life insurance. The data clearly shows the dominance of non-life insurance policies, such as auto insurance, travel insurance, accident insurance, and property insurance.
Auto insurance on top
Out of the 644,072 non-life insurance contracts, approximately €106 million in premiums were generated, with half of the policies related to auto liability insurance. This mandatory insurance for vehicle registration resulted in 304,926 vehicles being insured, with a gross premium of €47.55 million. Insurance companies paid out more than €23 million for damages under 16,763 claims.
Travel insurance followed with 108,577 policies and a gross premium of €1.75 million, with payouts of around €750,000 for about 7,000 claims.
Life insurance remains far behind
On the other hand, life insurance has a significantly lower number of policies and premiums compared to non-life insurance. Life insurance ranks third in terms of the number of policies and second in gross premiums, with 80,509 policies valued at around €25 million. Over €14 million was paid in claims last year.
Accident insurance followed with 57,898 policies and a premium of €14.6 million. Additionally, 51,270 supplementary life insurance policies were issued, amounting to €1.9 million.
There is also growing interest in property insurance against fire and other risks, with 340,645 policies valued at €4.5 million. Other property insurance policies accounted for over 30,000 contracts worth €12.2 million.
Insurance for guarantees and loans
The least number of policies were issued for railway vehicle insurance (two policies), aircraft insurance (13 policies), and maritime insurance (71 policies). Interestingly, 287 policies for guarantee insurance were issued, with a premium of nearly €670,000, and 74 of these were activated.
Regarding loan insurance, almost 13 contracts were concluded with a premium of around €1.2 million, while 69 policies, valued at about €380,000, were activated. Additionally, 3,354 policies for financial loss insurance were issued, generating a premium of around €607,000.
Data clearly shows that Montenegrins mostly insure vehicles due to the legal requirement. Life insurance remains significantly underrepresented compared to non-life policies, which may indicate a lower level of financial literacy and awareness of the long-term benefits of life insurance. The growing number of property insurance policies reflects an increasing awareness of protection against natural disasters and other risks.
