The first quarterly decline in RON: insurance market drops by 5% in Q1
 Specialists from the insurance market forecasted at the beginning of this year that the profile industry will decline by about 5% this year, and this received a first confirmation. The Romanian insurance market ended the first quarter of 2010 with a nominal decline, in national currency, of 5.3% compared to Q1/2009, to a volume of underwritings of RON 2.29 billion, according to preliminary data submitted by companies to the Insurance Supervisory Commission (ISC).
Market decline would have been more severe in the first three months if the life insurance segment had not had an unexpected upward trend, of over 6.7%, to almost RON 420 million, under the circumstances of a spectacular growth of 42% of unit-linked insurance.
"The upward trend of written premiums on this market segment was largely influenced by underwritings for life insurance and for annuities related to investment funds, which registered a nominal growth of 42.35% compared to the first three months of last year. These results demonstrate that, although macroeconomic trends did not follow the trends estimated in beginning of the year, Romanians began to realize the importance of these protection and long-term savings-investment products", said the ISC President, Angela TONCESCU.
Under the circumstances of a decline of over 25.6% of voluntary Motor Hull insurance, the general insurance segment ended the first three months of this year with underwritings of RON 1.87 billion worth, down 7.6% compared to the similar period of 2009.
Given current economic conditions, the revival of the Motor Hull segment will be possible only in the same time with the revival of the markets on which it depends - auto and leasing, according to ISC.
In the first three months of this year, insurance companies paid claims of RON 1.34 million, decreasing by 12.7% compared to same period of 2009.
In general insurance, companies paid total claims amounting to RON 1.19 billion, a level decreasing by 12.34% compared to the first quarter of 2009. Amounts paid as indemnizations and buy-backs for life insurance totaled RON 157.3 million, which represents a reduction of 15.32% compared to same period of last year.
"Amounts corresponding to total and partial buy-backs paid by life insurance companies decreased by 21.2% compared to the first quarter of 2009, from a value of RON 116.51 million, registered on March 31, 2009, to RON 91.8 million, at the same date in 2010. This evolution was felt since the second half of last year and ISC believes that life insurance will be able to recover in 2010 the gap registered in 2009", the President of the Commission estimates.
Of the 42 active insurance companies, the volume of gross written premiums of the first 10 insurers cumulated almost RON 1.8 billion, representing 78% of the total market.
The geographic distribution of gross written premiums, at the end of the first quarter of 2010, looks this way: Bucharest - 46.51%; the North-Western zone- 9.35%; the Center zone - 8.72%; the Southern zone - 7.92%, the South-Eastern zone - 6.98%; the Western zone - 6.34%; the South-Western zone - 5.3%.
Author: Andreea IONETE
on 12.05.2010
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