Title: Impact of sector levy on non-life insurance in Slovakia

Authors: Michal Vyskočil; Jiří Koudelka; Jaroslav Dufek

Addresses: Prague University of Economics and Business, Nám. Winstona Churchilla 1938/4, 130 67, Praha 3, Czech Republic ' Prague University of Economics and Business, Nám. Winstona Churchilla 1938/4, 130 67, Praha 3, Czech Republic ' Department of Probability and Mathematical Statistics, MFF UK, Prague, Czech Republic

Abstract: The paper deals with a sector levy imposed on non-life insurance in Slovakia, analysing its impact on the gross written premium, commission and claims ratio, and comparing life and non-life insurance after the introduction of the levy. A time-delayed linear regression AR model with point and interval estimates was developed to examine the above phenomena. The goal of the study was to determine whether the predicted values lie inside or outside the interval estimates. Having come into force, the sector levy only affected newly concluded insurance policies, GWP did not decrease, almost half of the 8% levy was absorbed by the commission, and the claims ratio remained intact. The outflow of written premiums from life to non-life insurance was partially proven.

Keywords: sector levy; insurance; gross written premium; GWP; linear regression; Slovakia.

DOI: 10.1504/IJEPEE.2024.138472

International Journal of Economic Policy in Emerging Economies, 2024 Vol.19 No.2, pp.159 - 189

Received: 05 Sep 2021
Accepted: 26 Feb 2022
Published online: 07 May 2024 *

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