Insurance market, between official increase and real decrease
 Despite the economic crisis, the Romanian insurance market will register a growth of 4-5% in 2009, say officials of the Insurance Supervisory Commission.
According to ISC President Angela TONCESCU, in the first nine months companies have been able to identify solutions of growth, so that the volume of underwritings amounted to RON 6.7 billion, a minor evolution from the previous year, but still remarkable amid the economical decline.
But, according to Specialty Review INSURANCE Profile, in the first 9 months of this year, the insurance market fell by more than one quarter of billion euro - the inflation rate, the exchange rate difference and the unfavorable economic context contributing to this state of fact. EUR 1.6 billion is the amount of gross premiums written by Romanian insurers in the analyzed period, with almost 14% less than the amount recorded in the first nine months of last year.
Practically, with the registered decrease, the insurance market "goes back" in time with more than two years, as today's market results are weaker than those recorded in the corresponding period of 2007.
A positive aspect is, however, that "this year, we have seen a normalization of the industry, companies no longer run after market share, and all efforts are aimed towards an activity as profitable as possible. We have a well-capitalized market, and the reserves are good enough to face the assumed obligations", Angela TONCESCU mentions.
For 2010, the quoted official also estimates an increase of 4-5%, considering that "companies will find resources to develop and, especially, to strengthen the market".
In the same note, Radu MUSTATEA, President of the Directorate, ASTRA-UNIQA, believes that 2010 will be a year of normalization and of growing responsibility of clients, due to the implementation of new measures on the profile market: the amicable report, the bonus-malus system, and also the mandatory household insurance law.
Also, "the greatest problem of the insurance segment, next year, will be the volatility of the exchange rate, as claims are related to the European currency", notes Radu MUSTATEA. He predicts for 2010 a one-digit evolution of the whole profile industry, the growth engines being life insurance, health insurance, and also the bancassurance segment.
Author: Oleg DORONCEANU
on 08.12.2009
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