Romania, one of the most significant increases in life insurance
In 2007, the Romanian insurance market has exceeded by more
than 30 % the rise of the global insurance market. On a global scale,
life insurance has registered a 5.4% increase, reaching 1,534 billion
EUR, surpassing the medium evolution of the last 10 years, according
to the SIGMA study by SWISS Re.
Over the same period, the life insurance
segment in Romania has grown by 36%, one of the most important increases
registered by the emerging economies of the newest 12 nations of the
European Union, each of them having a minimum of 20% increase in this
segment.
In these emerging new markets, where the growth potential is
still substantial, the gross written premiums in the life insurance sector
have been stimulated by intense economical performance and by taking over
a part of the general insurance segment.
The 33.2% increase in Romania in the life insurance sector
surpassed the medium increase and it reached 439 million EUR (just over
20% of the total gross written premiums), becoming one of the most satisfactory
incentives for the insurance industry, a relevant and important factor
being the development of the private pensions market.
Regarding the medium-term trends, as the economy and the capital
markets stabilize, life insurance will correct their growth and profitability.
The recent mergers on the European market, the saturation of
this segment in Western Europe, the high increase rates and the potential
which has not been speculated yet, have drown more investors to Romania.
The beginning of 2008 has brought 4 new significant players on the insurance
market: ERGO, AEGON, SIGNAL IDUNA and SOGECAP, the life insurance division
of the French group SOCIETE GENERALE, which will launch by the end of the
year BRD Asigurari de Viata. As 2008 goes by, the competition for the top
10 will become more and more intense as each of these have foreign ownership.
They are responsible for almost 95% of the gross written premiums in the
life segment. Nevertheless, the cross-selling opportunities for the newly
obtained portfolio by some of the private pensions companies, will greatly
influence the hierarchy.
To sum up, specialists have estimated a rise by 25% of the
life insurance sector, due to greater investments in the selling force
, advertising and last but not least, the change of the tax system, by
having fiscal facilities if the employer pays for a life insurance.
For 2010, companies' leaders estimate that the life insurance
segment will reach 25% of the total insurance industry in Romania. Its
development will continue, reaching half of the insurance market by 2007.
Author: Andreea IONETE
on 30.06.2008
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