Slovenia Insurance Supervision Agency director warns stability metrics can mask risk and flags earthquake insurance gap

In highlights from a speech by director Gorazd Cibej at the 32nd Insurance Days in Slovenia, the Slovenia Insurance Supervision Agency said the Slovenian insurance sector is currently stable, with good capital adequacy, profitability and premium growth, but warned that strong headline figures do not necessarily mean low risk. The speech identified climate risk, and especially Slovenia’s earthquake insurance gap, as a key vulnerability, arguing that a major earthquake in Ljubljana would create social, fiscal and political problems. The agency linked that warning to the fact that part of the sector’s growth comes from business outside Slovenia and from specific market conditions, which in its view requires caution even in good times. The speech also highlighted consumer protection and operational resilience issues arising from digitalisation and artificial intelligence, including whether products deliver value for money, whether consumers understand exclusions and limitations, and how firms address AI errors, discrimination and human oversight. It presented DORA as a necessary response to cyber risk, warned that sustainability claims should reflect actual practices rather than marketing, and tied long-term market stability to sound corporate governance, Fit & Proper processes and sustained supervisory scrutiny.