CEA: Portfolio diversification and financial education, the main factors for the insurance market stability
 The portfolio diversification of insurance companies is the most effective method to strengthen the financial stability of the insurance sector in Romania, according to General Manager of CEA - Comite Europeen des Assurances, Michaela KOLLER.
"Diversification is one of the fundamentals of the insurance business model because it helps spread risk, which allows for the shifting of risk for reasonable pricing. Motor insurance is still the most important business line in Romania, but insurance companies in Romania are increasingly diversifying their portfolio to other lines of business. This process will make the Romanian insurance market stronger and more resilient", Michaela KOLLER said for XPRIMM Newsletters,.
Also, financial education has a vital role, leading to increasing awareness and allowing consumers to make to make appropriate choices when considering, for example, how to ensure an adequate level of insurance cover, how to organize credit or how best to make provisions for retirement.
"Improving financial literacy in Europe is a societal challenge which requires the contribution of a range of different stakeholders. Public authorities, the private sector, academia and others can all play their part when addressing knowledge deficits amongst consumers regarding the wide range of financial products and services on offer. The European insurance industry actively promotes financial literacy via a range of excellent initiatives throughout Europe", the General Manager of CEA has stated.
Author: Andreea IONETE
on 06.10.2009
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