Insurers that relied on lending sustained most losses
The main "culprit" of last year's decline on the life insurance market was the lower volume of loans granted by banks, "insurance companies that had a portfolio with a high share of such insurance policies sustained most losses", said FRANS van der ENT, General Manager, EUREKO Asigurari.
Meanwhile, "corporate life insurance had the biggest disadvantage on the insurance market, as they had the "weakness" related to tax deductibility, respectively social contributions", stated the manager of EUREKO.
Life insurance products generated by the lending activity of banks had to be replaced in the portfolios of the players on the market, "as a significant trend experienced by EUREKO and several other companies consisted of the focus on saving products", added FRANS van der ENT.
At the same time, the new trend on the life insurers market is the fact that they ended the year "above the market average", said the General Manager of EUREKO Romania.
Right now, tax deductibility is the only argument for buying life insurance solely for the savings component. Therefore, if we talk about the customers' convenience and pragmatism, they have the alternative to life insurance, the simplest example being the mutual funds. We, as an industry, failed in persuading the authorities to give us deductibility", stated Theodor ALEXANDRESCU, General Manager at ALICO Romania.
Author: Vlad BOLDIJAR
on 25.05.2010
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