"Romania Insurance Report Q3 2013" now available at Fast Market Research
New Insurance research report from Business Monitor International is now available from Fast Market Research
[USPRwire, Thu Jul 04 2013] As of early 2013, our overall impression is that Romania's insurance sector remains resilient in face of a number of challenges. In spite of the general softness of the economy in general and sales of cars in particular, there has not been a sharp contraction in non-life premiums. Premiums in the life segment have held up fairly well too, suggesting that - for those Romanians who can afford the regular premiums - life insurance is valued as a conduit for their savings.
The Romania Insurance Report considers the prospects for life and non-life insurers in that country. As of early 2013, the overall impression is one of resilience. Some countries in Central and Eastern Europe have suffered double-digit drops in non-life premiums. Others have endured similar contractions in their life segments. Romania does not fall into either category. In short, the insurance sector has withstood a number of challenges, including the softness of the overall economy and sales of cars in particular.
That gross written premiums in the non-life segment rose in 2012 was remarkable given that business, by that metric, contracted in the three largest lines, which account for the majority of the segment. Premiums fell for compulsory motorists' third-party liability (CMTPL) insurance, voluntary motor insurance (CASCO) and fire and all risks. As of early 2013, it appears to us that some price competition persists in both of the main motor lines. However, the overall impact in 2012 was offset by surges in premiums in smaller lines, such as general liability and suretyship.
VIG and Allianz, the two leading (composite) multi-national groups who regularly provide details of their operations in Romania indicated they had endured high combined ratios during 2012. In VIG's case, the company has responded to the generally difficult conditions by restructuring its portfolio of business and its non-life operations in Romania. In the non-life segment, Omniasig and BCR now operate as a single entity under the Omniasig VIG brand.
Life premiums held up well in 2012 as well. In essence, the growth in premiums from traditional insurance products (including annuities) offset a contraction in sales of unit-linked products. Our conclusion is that life insurance is reasonably firmly entrenched as a conduit for organised savings where households can afford to buy it. However, for much of 2012, savers and investors have been fairly risk averse at a time of difficult economic conditions and generally volatile financial markets.
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