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    Press briefing: Positive developments in the insurance market in the first half of the year amid increased competition and lower claims. Average MTPL premium slightly down in Q2 2022

Press briefing: Positive developments in the insurance market in the first half of the year amid increased competition and lower claims. Average MTPL premium slightly down in Q2 2022

 

Bucharest, 27 September 2022 - Insurance companies registered in Romania achieved Gross Written Premiums (GWP) of 8.76 billion lei in the first half of this year, according to data aggregated in the Report on the Insurance Market Evolution in the first half of 2022. To these amounts are added the local underwriting of companies operating in Romania under the right of freedom of practice, which increased by almost 150% compared to the same period last year.

Specifically, companies selling in Romania under the Freedom of Service (FOS) and Freedom of Establishment (FOE) schemes had brokered premiums on the local market worth 730 million lei, bringing the total value of the local market to close to 9.5 billion lei by mid-year. Companies operating under FOS and FOE underwrote mainly on class 10 (MTPL and CMR), where the share in total brokerage is almost 41%. The second most important class in this respect is class A9 (agricultural insurance), with a share of more than 20%.

The evolution of Gross Written Premiums came amid increased competition and was accompanied by an improvement in the claims ratios. At 30 June 2022, the combined ratio was 101.66%, down substantially from almost 121% in the first half of last year. For the MTPL line, the combined rate fell from over 142% to just 107.4%.

A remarkable development can also be observed in terms of insurers' market shares. Combined on general and life insurance, three companies are practically in first position, with shares between about 17.5% and 18% of Gross Written Premiums. Groupama took first place with 17.78% of GWP, followed by Allianz-Tiriac with 17.74% and Euroins with 17.46%. The high level of competition is also strictly maintained at the general insurance level, which remains dominant in the market structure. Euroins ranks first with 21.02%, followed by Groupama with 20.99% and Allianz-Tiriac with 19.34%.

Last but not least, in the second quarter of 2022, the evolution of the average MTPL premium followed a stabilisation trajectory. At the end of June 2022, the average premium for MTPL insurance purchased by individuals was 904 lei, down from 913 lei at the end of March 2022. Overall (individuals and legal entities), the average premium was 1,154 lei on 30 June, compared to 1,138 lei in March 2022.

The report on insurance market developments in the first half of 2022 can be found here ( in Romanian)

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About the Financial Supervisory Authority


The Financial Supervisory Authority is the national authority, established in 2013 by GEO 93/2012 approved by Law 113/2013, for the regulation and supervision of the insurance, private pension and capital markets. The FSA contributes to strengthening the integrated framework for the functioning of the three sectors, which together account for more than 10 million participants. More information can be found at www.asfromania.ro

Translated with www.DeepL.com/Translator (free version)