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February 8, 2023

CASCO, RCA insurance segment hurt by crisis

At odds with the rising trend on the life insurance segment, general insurance subscriptions continued to lose ground in the first nine months of 2011, as the main business segments, CASCO and RCA insurances, reported slumps considerably above the market’s average, Wall-Street.ro reports. Thus, general insurance subscriptions amounted to RON 3.8bln by the end of September, 8.2 pc below figures for the first nine months of the preceding year. The make-up of companies’ portfolios, where the car insurance segment still claims the largest share, is largely to blame for this slump. Car insurance subscriptions account for 68 pc of total general insurance subscriptions. In this context, the main business segments, CASCO and RCA insurance policies, saw reductions sharply above the average, of 19.79 pc (CASCO) and, respectively, 18.5 pc (RCA), which largely influenced premiums subscribed across the car-insurance segment. Several factors, which had a cumulated effect, account for this state of affairs, according to the Asigura.ro portal. Firstly, the financial crisis led to the reduction of household budgets, as Romanians had to cut down on expenses – including the CASCO insurance premium. At the same time, the CASCO insurance market has been backed by leasing sales in the past five years. The steep fall of the leasing market left the CASCO insurance segment without its main engine for growth.

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