Over EUR 1 billion claims paid in 2007
The Romanian insurance companies had paid, over the past year, over EUR 1 billion losses. Thus, after the market surpassed EUR 2 billion in gross written premiums, 2007 brought into the picture a total amount of claims which, according to the Insurance Supervisory Commission (ISC), worked out at RON 3.35 billion (over EUR 1 billion).
The amount of paid losses rose up by almost 35% in 2007, according to ISC data. The growth for this figure exceeded almost 3 points the nominal growth line in euro registered for the gross written premiums during the analyzed period.
Almost 95% of the total amount of claims comes from non-life insurance segment, meaning EUR 950 million paid losses, which represents over 55% of the total amount of non-life insurance underwritings. Practically, over the passed year the insurance companies had paid losses for non-life insurance more than half of underwritings.
The heaviest class within the claims structure is referring to motor insurance (Motor Hull and MDPL), with almost EUR 726 million paid losses, representing 59% of the total amount of gross written premiums for non-life segment.
Howbeit, the underwritings' evolution for motor insurance registered, in 2007, a nominal growth, in euro, of almost 41%, with about 14 points over the paid claims dynamic.
Regarding the underwritings for motor insurance class, it reached the amount of EUR 1.24 billion in 2007, representing 58% of the market.
Over half billion EUR was the amount of paid claims for Motor Hull, rising up by 32% in comparison to 2006. The gross written premiums for this insurance type reached EUR 780 million, up with 49% compared to the previous year. In this context, Motor Hull insurance represents almost 37% of the market, with over 50% of the total paid claims.
Regarding the underwritings/paid claims ratio, the situation becomes more complicated on the credit insurance segment. For this insurance type the amount of gross written premiums reached EUR 118 million, increasing by 5% compared to the previous year, but the dynamic of paid losses was ahead of underwritings dynamic. Thus, the growth, in euro, for paid losses surpassed 46% and the amount of EUR 126 million paid losses exceeded by EUR 8 million the amount of underwritings for this insurance type.
According to ISC data, a positive and hopeful fact is referring to the evolution over the market's average of the life insurance segment. Thus, for this class, the Romanian insurers registered gross written premiums of almost EUR 432 million, increasing by 34% nominally, in euro, registering a superior dynamic of almost 1.5 points in comparison to the market's growth average.
"Considering the life insurance evolution I appreciate that 2007 represented the year of the life insurance revival", stated Angela TONCESCU, President of ISC. "The development on this sector is due to the life insurance companies' contribution and to their products, and not precise to the private pensions development", added Angela TONCESCU.
According to the ISC President, this year might represent a 25% growth for the market: "I believe that during this year the market will maintain the growing trend of about 25%". In this context, the insurance market could reach EUR 2.8 billion in terms of gross written premiums in 2008.
As for long term forecast, Angela TONCESCU considers that the market will reach EUR 7.5 billion in 2017, representing annual evolutions of 13-15%.
Gross Written Premiums in 2007 | Insurance class | % 2007 | 2007 | 2006 | Nominal growth in EUR | Real growth in RON | million EUR | million RON | million EUR | million RON | | TOTAL | 100.00 | 2,148.44 | 7,170.00 | 1,625.56 | 5,729.28 | 32.17 | 17.43 | | LIFE | 20.10 | 431.84 | 1,441.17 | 322.96 | 1,138.28 | 33.71 | 18.80 | | NON-LIFE | 79.90 | 1,716.61 | 5,728.83 | 1,302.60 | 4,591.00 | 31.78 | 17.09 | | MOTOR (HULL+MTPL) | 57.61 | 1,237.67 | 4,130.49 | 878.37 | 3,095.83 | 40.90 | 25.20 | | HULL | 36.75 | 789.64 | 2,635.26 | 529.03 | 1,864.57 | 49.26 | 32.62 | | MTPL | 20.85 | 448.03 | 1,495.22 | 349.35 | 1,231.27 | 28.25 | 13.95 | | FIRE and NATURAL DESASTERS | 9.03 | 193.98 | 647.36 | 151.53 | 534.07 | 28.01 | 13.74 | | CREDIT | 5.51 | 118.45 | 395.29 | 112.33 | 395.90 | 5.45 | -6.31 | The figures for 2007 are non audited data from ISC. The figures for 2006 are ISC official data. The results expressed in EUR for each analyzed period are generated using the average exchange rate presented by the National Bank of Romania for the analyzed period. The real RON evolution is calculated by comparing the results in the national currency from the analyzed period within the actualized results using the inflation rate in 2007, of 6.57%.
| Paid losses 2007 | Insurance class | % 2007 | 2007 | 2006 | Nominal growth in EUR | Real growth in RON | million EUR | million RON | million EUR | million RON | | TOTAL | 100.00 | 1,003.81 | 3,350.00 | 744.16 | 2,622.79 | 34.89 | 19.85 | | LIFE | 5.37 | 53.94 | 180.00 | 39.95 | 140.82 | 34.99 | 19.94 | | NON-LIFE | 94.63 | 949.87 | 3,170.00 | 704.20 | 2,481.96 | 34.89 | 19.85 | | MOTOR (HULL+MTPL) | 72.29 | 725.70 | 2,421.88 | 573.19 | 2,020.20 | 26.61 | 12.49 | | HULL | 50.72 | 509.13 | 1,699.12 | 385.02 | 1,357.02 | 32.23 | 17.49 | | MTPL | 21.57 | 216.57 | 722.76 | 188.16 | 663.17 | 15.10 | 2.27 | | CREDIT | 12.59 | 126.33 | 421.61 | 86.43 | 304.62 | 46.17 | 29.87 |
The figures for 2007 are non audited data from ISC. The figures for 2006 are ISC official data. The results expressed in EUR for each analyzed period are generated using the average exchange rate presented by the National Bank of Romania for the analyzed period. The real RON evolution is calculated by comparing the results in the national currency from the analyzed period within the actualized results using the inflation rate in 2007, of 6.57%. |
Author: Alex ROSCA
on 06.03.2008
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