Facebook LinkedIn

The evolution of the insurance market in 2017

Bucharest, April 2nd, 2018 - The insurance market in Romania continued its growth trend in 2017. The insurance companies authorized and regulated by ASF have subscribed gross premiums in the amount of 9.7 billion lei, 3.5% more than in the previous year.

A change in the trends during previous years is the strengthening of the life insurance segment, which last year registered a significant increase of 21% compared to 2016. If between 2012 - 2014 the activity of life insurance was declining in terms of volume of gross written premiums, starting 2015 this segment has increased again, and in 2017 the evolution of the insurance sector was due to the life insurance segment.

Gross underwritten premiums (GWP)

General Insurance (GI)

Gross written premiums (GWP) for general insurance (GI) amounted last year to a value of about 7.7 billion lei. Of the total gross written premiums for non-life insurance, the highest shares are held by classes A10 - Civil liability for the use of land vehicles, A3 - Land vehicles, excluding railway rolling stock, A8 - Fire and natural disasters (for goods other than those insured in classes A3 to A7).

In 2017, the share of these three classes was 88% of total gross written premiums for non-life insurance business:

  • A10 - Civil liability for the use of land vehicles with a total of gross written premium of 3,822 billion lei representing 50% of the total non-life insurance;
  • A3 - Land vehicles, excluding railway rolling stock, with a total of gross written premiums of 1 , 89 billions lei, representing 25% of total non-life insurance, registered an increase of 8% in 2017 as compared to 2016;
  • A8 - Fire and natural disasters (for goods other than those insured in classes A3 - A7), with a total of gross written premiums of about one billion lei, representing 13% of the total underwritings for non-life insurance.

Life Insurance (LI)

Gross written premiums by life insurance companies increased by 21% in 2017 compared to the previous year, reaching about 2.02 billion lei.

Of the total gross written premiums for life insurance, the highest shares are held by C1 - life insurance, annuities and supplementary life insurance, and C3 - Life insurance and annuities related to investment funds, which together account for 96% of the total gross written premiums for life insurance.

Gross claims paid (GCP)

In 2017, insurance companies reported gross claims paid (except for maturities and partial and total redemptions), cumulatively for the two insurance categories, amounting to 4,21 billion lei as follows:

  • 4.05 billion lei related to non-life insurance contracts (96%), registering an increase by 12.6% as compared to the similar period of 2016 (3.6 billion lei);
  • 158.4 million lei - amounts paid for gross claims, relating to life insurance, registering an approx. 2.8% increase compared to 2016 (154.06 million lei).

Solvency II

Under Solvency II, the capital requirements for insurance companies are higher, as they are actually based on the risks undertaken by them (both in terms of investment and underwriting).

The own funds eligible to cover the solvency capital requirement were at the end of 2017 at a value of 5.15 billion lei, up by 12% as compared to 2016.

The Solvency Capital Requirement (SCR) and the MCR (Minimum Capital Requirement) rates at the market level were above par at the end of 2017 for the first time after the Solvency II regime's requirements were implemented. Also, both the SCR rate and the MCR rate at the market level increased at the end of 2017 as compared to the end of 2016. The SCR rate at the market level increased by 6% and the MCR rate at the market level increased by 12%.

The RCA market

The total value of insurance premiums subscribed for RCA insurances in 2017 reached 3.7 billion lei, the rest to the total of the A10 class (3.82 billion lei) representing the Carrier's insurance for cargo and RCA underwritten to the territory of other EU Member States on the basis of the freedom to provide services .

The combined ratio calculated for Class A10 (RCA) was of 99.46% in 2017.

Subsidiaries

Subsidiaries accumulated in 2017 gross written premiums amounting to 755.6 million lei, up by 12% compared to the same period of the previous year.

Insurance Brokers

As a result of the centralization of the reports sent by insurance and / or reinsurance brokers on December 31st, 2017, the value of the brokered premiums for non-life insurance and life insurance was 6,15 billion lei, down by 0.86% compared to the same period of 2016.

In 2017, insurance and / or reinsurance brokers mediated 63.41% of the total gross written premiums by insurers for the two insurance classes (9.7 billion lei), which means a decrease by 2.77 percentage points compared to the intermediation degree recorded in the similar period of 2016.

 

The exhaustive report on the evolution of the insurance market in 2017 can be consulted HERE ( only in Romanian language)