The first annual decrease in insurance
The Romanian insurance market ended 2009 with a slight decrease in the underwritings volume, of 1.1%, nominal, in national currency, amid an unfavorable evolution of the life insurance segment, according to preliminary data published on the 1st of March by the Insurance Supervisory Commission (ISC). The year 2009 has brought to the profile companies a volume of gross written premiums of RON 8.83 billion, compared to RON 8.93 billion in 2008. In European currency, the insurance market has gone from a positive evolution of 11% in 2008, to a negative one of 14% in 2009, to EUR 2 billion, compared to EUR 2.42 billion in the previous year, according to INSURANCE Profile estimates. (The average exchange course RON/EUR for 2008 was 3.6827 and the average exchange course RON/EUR for 2009 was 4.2373).
Meanwhile, the volume of claims paid by insurers had an advance of 26.4% (plus 9.8% in euros), climbing from RON 4.64 billion (EUR 1.26 billion) in 2008, to RON 5.86 billion (EUR 1.38 billion) last year.
The decrease of the insurance market in 2009 took place on the background of unfavorable evolution of the life insurance segment, amid rising unemployment and a fall in population income, along with the psychological factor which manifested by an increase in consumers uncertainty regarding their financial safety. These led, especially in the first half of 2009, both to an increase in the number of call-offs and of repurchase of contracts, and to the postponement of the intention of buying an insurance policy.
Thus, on the life segment, underwritings have decreased by 13% compared to 2008, from RON 1.87 billion to RON 1.63 billion, the decrease in European currency being of 24.4%, from EUR 507.3 million in 2008, to EUR 383.6 million last year. The best evolutions on the life segment were those of the classes: unit-linked (8.59%), health (7.54%) and accidents (14.42%). Gross paid indemnisations and the amounts paid for repurchasing and life insurance contracts that had reached maturity have totaled, in 2009, RON 680.72 million (EUR 160.6 million), up 37.48% compared with the level of 495,1 million (EUR 134.5 million) in 2008.
On the general insurance segment, gross written premiums advanced by 2.03%, from nearly RON 7.1 billion to RON 7.2 billion. However, in European currency, this segment fell by 11.3%, to EUR 1.7 billion, from EUR 1.9 billion a year ago. The best evolution has been registered by the guarantees insurance segment, where gross written premiums advanced by 158.6%, from RON 12.6 million in December 2008, to RON 32.7 million in December 2009.
Motor insurance segment - Motor Hull and mandatory motor third party liability (MTPL) - totaled a volume of gross written premiums of RON 5.56 billion, contributing with 63% to the total volume of underwritings made in the market.
Gross indemnisations paid by non-life insurers rose by 25% (8.7% in euros), totaling, last year, RON 5.18 billion (EUR 1.22 billion), compared with RON 4.14 billion (EUR 1.13 billion) in 2008.
Regarding 2010, ISC estimates that the market will recover the small decrease registered last year and will end this year with a plus 5% at least, in the absence of a new degradation of macroeconomic indicators, since potential consumers began to be increasingly aware of the need for protection.
Author: Andreea IONETE
on 01.03.2010
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