2010 - the year of rethinking strategies
 After a 2008 and a 2009 in which the Romanian insurance market was forced to respond almost spontaneously, but very cautiously, to the challenges of this crisis, so that its effects be much reduced for insurance products' consumers, but also for companies, 2010 will be a year of rethinking strategies, according to ISC President, Angela TONCESCU.
"I recommend companies to manage very well their portfolios, to assess the risks of each type of insurance, to better foresee the administration and acquisition costs and, of course, to try as much as possible to reduce motor insurance in their portfolio", stated the official in an interview for XPRIMM Publications.
"Money has not yet become as available as two years ago, so that the shareholders won't be willing to accept again to support the losses only for the sake of increasing market share. Let's not forget that insurance companies' shareholders are important financial groups on the European market, which have been subjected to tough tests in their countries. Today, these shareholders want profit and this cannot be obtained without a serious rethinking of business strategies in Romania", the ISC President argued.
However, although the crisis has matured the companies' behavior, in order to talk about a maturing of the Romanian insurance market there should be, first of all, a maturing of the financial behavior of the population.
"Evolution of the insurance market in 2009 has shown that long-term saving products, such as life insurance, lost ground to short-term bank deposits. There was a change in the financial behavior of the Romanians that was insufficiently sophisticated even before the onset of the crisis. In the same way, if we look at the written premiums structure, we notice that motor lines - Motor Hull and MTPL - still hold the majority share of the total underwritings. We cannot talk yet about a maturing of the segments that should really count - life insurance, health insurance, household insurance", Angela TONCESCU completed.
Therefore, efforts of the insurance industry must focus, further on, on increasing awareness on the concept of insurance, said the ISC President, because, in fact, "lack of knowledge of this market by potential customers is the main impediment for the development of the insurance industry".
Author: Andreea IONETE
on 12.05.2010
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