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December 5, 2020

Decreasing the share held by car insurances, sign of civilisation

Romania, last in the EU in the insurance sector.

The high share held by car insurances in the total volume of subscriptions reflects the lack of civilisation and is the effect of a low degree of education and interest by population, which avoids contracting non-car policies like those of civil insurance against third parties, according to the Romanian National Union of Insurance Brokerage and Consulting Companies (UNSICAR). “In Poland, car insurances held a high share (of the total) 10-15 years ago, then they slightly decreased, while other types of insurances advanced. If the weight of car insurances drops, we can say that the degree of civilisation in the respective country has increased,” UNSICAR President Bogdan Andriescu said during a meeting with journalists, quoted by Mediafax. According to data released by the Insurance Supervisory Commission (CSA), subscriptions from auto policies (RCA and CASCO) last year amounted to RON 3.96 bln and accounted for 50.6 pc of the total incomes reported by insurance companies, down almost 10 percent points from 2010, against the background of lower car sales and a decline of leasing and credit financing. “There has been much talk these years about the potential of the Romanian insurance market, but the share held by the various insurance lines in the total figure has not significantly changed. One of the reasons is that Romanians do not include a non-car insurance contract on the list of their basic necessities and delay, or plainly avoid make a decision with this regard,” Andriescu explained. The data released by the UNSICAR official show that Romanians spend each year approximately EUR 97, in average, for insurance policies, while in Bulgaria the figure is ER 13 higher. In Hungary, insurance expenses amount to EUR 300 a year, in Poland EUR 355, and in Austria EUR 2,000. The average figure in Europe was EUR 1,873 a year in 2011. “Practically speaking, Romania holds the last place in the EU with this regard. In Bulgaria, the Gross Domestic Product per capita was EUR 5,252 in 2011, while in Romania it was EUR 7,169. Figures show that, rather than money, the decisive factors in making the decision to contract a policy are education and awareness. According to Andriescu, the advance of the insurance market in the first 6 months was driven by the subscriptions of Romanian insurers abroad, which reached a share of 5.8 pc.

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