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December 9, 2022
BUSINESS

E&Y: 2012 will be another difficult year for the Romanian insurance market

2012 will be another difficult year for the Romanian insurance market and not only for it, as the representatives of the most important players forecast stagnation as base scenario and an increase by 1-2 pc as optimistic scenario, reads a survey by Ernst & Young, quoted by Wall-Street.ro. The main reason for the pessimism of the insurance industry is the long economic crisis, which eroded the incomes and purchasing power of the population. Compared to 2008 – the peak year of the industry – 2010 came with decreases of 10 pc in the life insurances sector, 6 pc for general insurances, and 7 pc per total, in terms of subscribed gross premiums.

Preliminary results for Q3 2011 show that the downward trend is present in 2012 as well, resulting in a 4 pc decline of subscribed gross premiums at the scale of the whole market, vs. the same interval of the previous year. “2012 will be yet another difficult year for the insurance market of Romania, and not only for it. Representatives of the most important players in the market forecast stagnation as base scenario and a modest growth (1-2 pc) as optimistic scenario. The main reason for the pessimism of the insurance industry is the long economic crisis, which eroded the incomes and purchasing power of the population,” considers Anamaria Cora, partner, the financial auditing department of Ernst & Young.

Compulsory insurances, especially the RCA will further exert a decisive influence upon the general evolution of the market, despite a decrease of the share they hold in the total market.

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