Romanian Insurance Mkt Down 5.7% In 2010, To RON8.36B

Last year's decline was sharper than in 2009, when underwritings decreased just 0.74% from 2008, to RON8.87 billion.

The decline posted in 2010 was the result of a 7.5% decrease in underwritten premiums on the general insurance market, to RON6.69 billion, coupled with a 2.32% increase on the life insurance market, to RON1.66 billion.

In 2009, general insurance increased 2.45%, to RON7.24 billion, while life insurance dropped 12.84%, to RON1.63 billion.

Unlike other markets, the Romanian insurance market depends largely on car insurance, as underwritten car insurance premiums make up more than 60% of the market, so the decline of auto sales and car leasing has led to a decline in underwritten CASCO insurance (-25,12%), the watchdog said in its report.

The report adds CASCO insurance accounted for 37.2% of the general insurance market in 2010, from 46% in 2009.

The mandatory car insurance RCA segment saw a 11.26% increase in underwritten premiums and RCA insurance accounted for 37.4% of the general insurance market last year, from 31.1% in 2009.

Insurance against fires and natural disasters have increased 3.9% and have come to account for 14.5% of the market. Upward trends were also apparent for general civil liability insurance (+7.38%) and guarantee insurance (+121.62%), although these types of insurance account for less than 2% of the market.

"Underwritings have been affected since the crisis started but we expect a rebound as the social and economic context improves," said CSA president Angela Toncescu.

In 2010, the increase posted by life insurance was driven by unit-linked policies, which posted a 9.18% increase. "We expect this type of insurance to generate a positive influence in the upcoming period," said Toncescu.

Romanian insurers paid RON5.44 billion in damage claims last year, down 7.18% from 2009.

Toncescu also said insurers managed to increase their technical reserves by 3.3% last year and the biggest share of technical reserves comes from general insurance and amounts to RON6.79 billion.

"Technical reserves amount to RON11.18 billion and assets admitted to cover reserves amounted to RON13.19 billion, 3% more than in 2009," she said.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.