UNSAR: Visible effects of recovery of the insurance market, only in 2011
 Prospects of economic recovery in the near future are quite pessimistic, those regarding the attainment of a significant new business volume are almost nonexistent, and most insurance companies expect in the best case a hold-up pf the market in 2010. Adding to this context the specific problems of the Romanian profile market, still dominated by the motor segment, the issues raised by the increasing fraud phenomenon and by the limited control of the claims, it is imperative that this year be devoted to rethinking business strategies, according to the National Union of Insurance and Reinsurance Companies in Romania (UNSAR).
"I think 2010 will not bring significant new business volume. Until we see a more clear change of the underwriting strategies, the evolution of the motor segment, which holds a share of over 60% of the insurance industry underwritings, will continue to increase the deficits of insurers in the core activity, considering that in Romania the frequency of claims is several times higher than in other European countries and claims control is still at a limited level. And, adding to that tendency the one of decrease of the volume of activity, this may interfere a lot with the plans of those that still practice cas-flow underwriting. For these, it is mandatory that 2010 be the year of rethinking business strategies", said Cristian CONSTANTINESCU, President of UNSAR.
Regarding the life segment, the gap between the economic recovery and that of the life insurance industry will be five-six months, and the factor that will determine the recovery will be the increase of consumers' confidence in their financial future safety, according to Vicepresident of UNSAR, Cornelia COMAN.
"Life insurance market will enter in the recovery period, after the decrease registered in 2009, to the end of this year, but with noticeable effects starting 2011. Even if the Romanian economy will recover, for our market it will take more time until people will resume their pre-crisis behavior, both in consumption and in savings level", the UNSAR official added.
In the opinion of the economic analyst Dragos CABAT, "2010 will continue the negative trends of 2009, as Romania's economy depends strongly on the export market in the European Union. Under the circumstances that the recession in the Union is prolonged, it is expected that the crisis in our country will not end before the third quarter, in the optimistic version, or even in the last quarter of this year".
Author: Andreea IONETE
on 29.04.2010
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