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October 23, 2020

Insurance market reaches RON 2.05 bn in Q1

In the first quarter of 2014, subscribed gross premiums on the Romanian insurance market touched EUR 2.05 billion, down by 3.43 percent against the similar period last year. “Given the industry’s dynamic, we can say the local insurance market is stable. We are far behind other countries in the region, not to mention those countries which have a number of consumers comparable to ours. The most important aspect is that the payment reserves are much higher and we now have damage payment rates close to the European standard. Romania’s rate levels last year were 65 percent, whereas this year they are projected at 73 percent,” Misu Negritoiu, president of the Insurance Supervisory Commission (ASF), stated Thursday in a press conference.
From January to March 2014, subscribed gross premiums (SGP) accounted for 1.26 percent of the Gross Domestic Product (GDP) estimated by the National Institute of Statistics (INS) for this first quarter. SGPs reported a 2.09 percent drop in the general insurance segment compared with the same period in 2013, whereas the average insurance premium for RCA went up from RON 462 in January/March 2013 to RON 468. Also according to ASF, insurers paid 0.93 percent more damages in the first three months of the year than in March 2013, namely RON 1.31 billion.
Life insurance SGPs increased by 8.91 percent from the first quarter last year, to RON 382.29 million. Data provided by ASF shows general and life insurance policies account for 1.26 percent of Romania’s GDP. The first five major players in this field are: Allianz-Tiriac with RON 257.4 million, Astra with RON 217.1 million, Omniasig with RON 192.1 million, Carpatica Asig with RON 164.3 million, and Groupama with RON 150.8 million.
As far as Astra is concerned, “the only viable solution for this company to start working at a normal capacity is to recapitalize insurers through strategic investors who have a solid reputation; this solution needs to be agreed upon with the company’s majority shareholder,” Misu Negritoiu, president of ASF, said further.

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