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Insurance Market in 2014


Bucharest, 12 March 2015
– The gross written premiums (GWP) on the Romanian insurance  market reached last year 8.09 billion lei, down by 0.34% as compared to 2013 (8.12 billion lei).  

In 2014, the insurance market penetration in GDP was approximately 1.21% (according to provisional data), down as compared to 1.29% of 2013, and 1.41% of 2012.

Of the total value of GWP, 6.45 billion lei (79.71%) is GWP in the non-life insurance segment, and 1.64 billion lei (20.29%) is GWP in the life insurance segment.


Evolution of gross written premiums by categories of insurance and overall

Categories of insurance       

31.12.2012

(lei)

31.12.2013

(lei)

31.12.2014

(lei)

Variation 31.12.2014/

31.12.2013

(%)

Non-life insurance

  6,454,395,818     

  6,488,150,452    

  6,452,457,944    

-0.55

Life insurance

1,802,519,132

1,634,296,439

1,641,984,911

0.47

Total

8,256,914,950

8,122,446,891

8,094,442,855

-0.34




GWP – Non-life insurance

In 2014, the gross written premiums related to non-life insurance reached 6.45 billion lei, down by 0.55% as compared to 2013.

The gross written premiums related to Class III - Insurance of land transportation means, other than railway means of transportation, Class VIII - Fire and general insurance against natural disasters and Class X Insurance against civil liability in respect of the use of motor vehicles represent 84.46% of total gross written premiums for non-life insurance activity.


Evolution of gross written premiums by non-insurance classes

Classes

Gross written premiums (lei)

Absolute change (lei)

Variation

(%)

31.12.2012

31.12.2013

31.12.2014

31.12.2014/ 31.12.2013

31.12.2014/ 31.12.2013

III

1,916,682,149

1,796,496,249

1,692,786,990

-103,709,259

-5.77

VIII

1,081,228,539

1,021,907,073

960,187,718

-61,719,355

-6.04

X

2,137,043,377

2,461,675,830

2,796,506,971

334,831,141

13.60

Other classes

1,319,441,753

1,208,071,300

1,002,976,265

-205,095,035

-16.98

Total

6,454,395,818

6,488,150,452

6,452,457,944

-35,692,508

-0.55%

 

Class X - Insurance against civil liability in respect of the use of motor vehicles (RCA + CMR),with gross written premiums of 2,796,506,971 lei, representing 43.34% of total underwritings for non-life insurance, increased in 2014 by 13.60% as compared to 2013. 

Class III - Insurance of land transportation means, other than railway means of transportation (CASCO), with gross written premiums of 1,692,786,990 lei, representing 26.23% of total underwritings for non-life insurance, decreased by 5.77% as compared to 2013. 

Class VIII - Fire and general insurance against natural disasters, with gross written premiums of 960,187,718 lei, representing 14.88% of total underwritings for non-life insurance, decreased in 2014 by 6.04% as compared to 2013.

In 2014 PAID wrote gross premiums of 126,632,285 lei, representing 13.19% of the volume of underwritings related to Class VIII - Fire and general insurance against natural disasters, and 1.96% of total gross written premiums related to non-life insurance. In 2014, the level of gross written premiums increased by 110.16% as compared to 2013 (60,253,975 lei), with an absolute size increase of 66,378,310 lei, as a result of the amendment in August 2013 of Law No. 260/2008 on the compulsory home insurance against earthquakes, landslides and floods.


GWP – Life insurance

In the life insurance (LI) segment, the value of GWP was last year 1.64 billion lei, up by 0.47% as compared to 2013.

In the LI segment, significant shares of the portfolio structure are held by Classes AI and AIII, holding together 94.90% of the total.

Class AI - Life insurance, annuities and additional life insurance represented, over the period under review, 61.15% of the total, down by 2.05% as compared to 2013.

Class AIII - Life insurance and annuities related to investment funds represented, in 2014, 33.75% of the total, up by 1.89% as compared to 2013.


Dynamics of gross written premiums for life insurance

Class

Gross written premiums for life insurance (lei)

Absolute change (lei)

Pace of growth (%)

31.12.2012

31.12.2013

31.12.2014

31.12.2014/ 31.12.2013

31.12.2014/ 31.12.2013

AI

1,106,597,613

1,025,144,246

1,004,093,844

-21,050,402

-2.05

AIII

626,278,317

543,896,343

554,154,028

10,257,685

1.89

Other classes

69,643,202

65,255,850

83,737,039

18,481,189

28.32

Total

1,802,519,132

1,634,296,439

1,641,984,911

7,688,472

0.47

 

Gross Indemnities Paid (GIP)

In 2014, insurance undertakings reported gross indemnities paid, cumulatively for both categories of insurance, of 4,844,859,161 lei, down by 2.78% as compared to 2013 (4,983,199,308 lei).

Of the total value of the gross indemnities paid:

  • 4,027,851,470 lei correspond to non-life insurance contracts (83.14%), down by 4.49% as compared to 2013 (4,217,170,541 lei);
  • 817,007,691 lei are amounts paid for gross indemnities, maturities and repurchases paid by insurers corresponding to life insurance, up by 6.65% as compared to 2013 (766,028,767 lei).


Gross indemnities paid for both categories of insurance

Period

Total indemnities paid for NLI and LI

(lei)

Variation (%)

Gross indemnities paid for NLI (lei)

Pace of growth (%)

Gross indemnities, maturities and repurchases paid for LI (lei)

Variation (%)

31.12.2012

5,183,371,291

-

4,453,717,618

-

729,653,673

-

31.12.2013

4,983,199,308

-3.86

4,217,170,541

-5.31

766,028,767

4.99

31.12.2014

4,844,859,161

-2.78

4,027,851,470

-4.49

817,007,691

6.65

 

GIP – Non-life insurance

The highest share of the total gross indemnities paid for non-life insurance is heldby the payments corresponding to the following classes, representing together 93.0%:

-       Class X - Insurance against civil liability in respect of the use of motor vehicles withgross indemnities paid of 1,957,768,143 lei, represent 48.61% of the total gross indemnities paid for non-life insurance, up by 1.61% as compared to 2013.

-       Class III - Insurance of land transportation means, other than railway means of transportation (CASCO) with gross indemnities paid of 1,444,303,116 lei, represent 35.86% of the total gross indemnities paid for non-life insurance, down by 18.15% as compared to 2013.

-       Class VIII - Fire and general insurance against natural disasters with gross indemnities paid of 204,822,759 lei, represent 5.09% of the total payments for non-life insurance, down by 7.44% as compared to 2013.

-       Class XIII - General civil liability insurance with gross indemnities paid of 139,163,847 lei, represent 3.46% of the total payments for non-life insurance, up by 3.8 times as compared to 2013.

GIP – Life insurance

Gross indemnities, maturities and repurchases of 817,007,691 lei were paid In 2014 for the category of life insurance, up by 6.65% as compared to 2013 (766,028,767 lei).

In 2014, the highest payments were made for the following insurance classes:

-    Class AI -  Life insurance, annuities and additional life insurance, representing 44.90% (366,826,513 lei) of the total payments made, down by 8.53% as compared to 2013 (401,049,615 lei);

-    Class AIII - Life insurance and annuities related to investment funds representing 51.74% (422,738,416 lei) of the total, down by 22.49% as compared to 2013 (345,111,861 lei).

 

Loss rating

The analysis of the data reported by insurance undertakings reveals that, for the overall non-life insurance, the loss rating decreased last year by 5.69% as compared to 2013.

Classes III - Insurance of land transportation means and X - Insurance against civil liability in respect of the use of motor vehicles decreased by 5.16% and 12.90%. At the same time, the loss rating for Class VIII - Fire and general insurance against natural disasters decreased by 4.89%.

At the end of last year, 37 insurance undertakings were carrying out insurance activities, of which: 20 insurers – non-life insurance activities, 9 insurers – life insurance activities, and 8 insurers – both categories of insurance.

Insurance brokers

Insurance and/or reinsurance brokers brokered last year premiums of 4.56 billion lei, up by 16.32% as compared to 2013 (3.92 billion lei). The amount of intermediated premiums represents 56.45% of the total volume of gross written premiums for both categories of insurance (8.09 billion lei).

Last year, the value of intermediated premiums for non-life insurance was 4.45 billion lei, up by 16.43% as compared to 2013.

In 2014, in the life insurance segment, the value of intermediated premiums was110,028,931 lei, up by 11.99% as compared to the previous year.

In 2014, the total revenues obtained by the insurance brokers from the insurance intermediation activity were 843,647,839 lei, up by 6.67% by reference to the same period of 2013 (790,863,209 lei).

The analysis of the data of the first 20 insurance brokers, by reference to the volume of intermediated premiums and market share, reveals that they hold 52.95% of the total brokerage market.

An exhaustive presentation of the insurance market and insurance brokers in 2014 is available in romanian  here.