Bogdan STAN: the non-life insurance market will recover in 2010
The non-life insurance market will become profitable as late as 2010, the date
when companies will focus more on profitability than on market share. Bogdan
STAN, CEO of EUROINS Romania, believes that share holders are increasing
the pressure and are getting involved in executive processes.
"2010 will be the year when the Romanian general insurance market will feel
the recovery, only if the insurance companies will start cooperating through
UNSAR, developing fraud prevention programs and improving the collaboration with
auto-repair services", Bogdan STAN says.
According to Bogdan STAN, the managers hold the responsibility for the current
situation of the non-life segment ass well as for finding solutions to make
it profitable.
He also mentions that things will not change if share holders will not get
involved in executive processes, even if this goes against the principles of
corporative leadership.
The national insurance industry registered a loss in 2007 for the second year
in a row. It was the fourth year when the dynamics of the claims ration was
higher than that of the gross written premiums.
As of 2003, the claims ratio has been growing faster than the written premiums
and, by the end of 2007 the market went from a 20 million EUR profit to a 76
million dollar loss.
This was the result of an operational loss of 324 million EUR in the non-life
segment, representing 5,7% of the gross written premiums ( 2% higher than the
previous year). The negative result was influenced by the lower profit in the
life segment, from 106 million RON in 2006 to 66 million in 2007.
Author: Andreea IONETE
on 26.06.2008
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