Romanian Insurance Market Figures (2006&1Q 2007) now available for
Issue 2/2007 of Insurance PROFILE Quarterly review is now available for
download on www.insuranceprofile.ro. The current issue of the review
includes, in a 68 pages special edition, the Romanian Insurance Market
Audited figures for 2006 together with the preliminary figures from the
1st quarter of 2007.
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by email@example.com, 1.06.2007
Motor Hull insurance grows
In the first quarter of 2007, the motor hull insurances' market grew
in real terms with 45.52% according to the results published by Insurance
Thus, the premiums underwritten on this class reached RON 561.63 million
(EUR 165.85 million), comparative to the RON 370.15 million (EUR 103.85
million) registered in the first quarter of 2006.
In the same period, the paid damages on this segment increased rapidly,
their volume nominally growing in European currency with 97.57%, from
EUR 37.48 million in the first 3 months of 2006 to EUR 74.05 million
in the similar period of this year.
ALLIANZ - TIRIAC continues to be the leader of this class, with RON 152.51
million (EUR 45.04 million) gross written premiums and a 27% market share.
The second and the third position, are held by OMNIASIG (11.04%) and
The Romanian insurance market's results for 2006 ( audited) and those
preliminary of the Q1/2007 are available for download on the Insurance
Profile review's web site :
by firstname.lastname@example.org, 5.06.2007
A new supervisory philosophy for the Insurance Supervision Commission
"The Insurance Supervisory Commission supports FIAR - The International Insurance
Reinsurance Forum, event which facilitates the dialog between the representatives
of the profile industry, having a contribution to the promotion of the insurance
market both at national and international level, and, not at last, to the increase
of the insurance knowledge among the people", Tudor BALTA, Vice-President of
the Insurance Supervisory Commission stated in the opening of the International
Re/Insurance Conference of FIAR, on 22nd of May 2007.
"The Romanian adherence to the European Union means not only benefits but also
responsibility of our involvement in the elaboration of European legislation
and representation of Romania in the European organizations", Tudor BALTA added.
Thus, The Insurance Supervisory commission has elaborated a series of
principals which governs its activity, among these being the application
of an equal, equidistant and nondiscriminatory supervisory treatment.
Also, the Insurance Supervisory Commission will change its philosophy
in order to be perceived as an authority which mainly supervises from
the prudential point of view. "This way, it's necessary a permanent dialog
with insurance companies, insurance brokerage and professional associations
in the field so as to offer Commission a better image over the current
problems and also to streamline the regulatory activity and supervision",
the quoted official concluded
by email@example.com, 22.05.2007
ALLIANZ - TIRIAC Private Pensions starts to sell on Pillar III
On 4th of June 2007, ALLIANZ - TIRIAC launched the sales for the first
facultative pension fund, AZT Moderato.
This fund is, generally, for those wanting performances which are the
result of an equilibrate investment strategy.
The company intends to offer soon other facultative pension funds, so
in this regard it has put documents for the authorization of a second
facultative pension fund, AZT Vivace, at the Supervisory Commission of
the Private Pension System.
All employees and persons who gain incomes assimilated to wages can contribute
to facultative pension funds, their contribution being deductible in
a EUR 200/year limit.
ALLIANZ - TIRIAC Pensii Private starts the sales for the first facultative
pension fund with 2,200 marketing agents, already authorized by the Supervisory
Commission of the Private Pension system.
"As the offer of ALLIANZ - TIRIAC to get to as many potential participants as
possible until the end of June 2007, the number of marketing agents will exceed
3,500", the company's representatives declared.
ALLIANZ - TIRIAC Asigurari, the leader of the Romanian insurance market
is the main shareholder of the ALLIANZ - TIRIAC Pensii Private.
by firstname.lastname@example.org, 4.06.2007
The concentration tendency remains
In the future, we will witness to a businesses' concentration in insurance
field. This is the opinion expressed by Cristian CONSTANTINESCU, President
of National Association of Insurance and Reinsurance Companies from
Romania during the first part of the International Re/Insurance Conference
"These processes will be determined by the increased interest of international
strategic investors in entering on the Romanian insurance market or in consolidating
their position in Romania. In this context, inclusive from the operational structures
point of view, the local hierarchy is far from being stable', the quoted official
This fight for winning market share may cause structural imbalance and
finally affect the market reputation in a whole. "That's why, during
this period all of us involved in this activity must be aware of the
responsibility we have in the consolidation process of the market", Cristian
Thus, the need for identification of common initiatives so as to improve
the public's opinion on insurance concept becomes more and more striking.
"In this context National Association of Insurance and Reinsurance Companies
from Romania, as representative association for the operators in the field, has
an important role", the President of association considers.
In 2006, all 24 members of National Association of Insurance and Reinsurance
Companies from Romania underwrote over EUR 1.5 billion, and estimations
indicate they will exceed EUR 2 billion at the end of 2007.
by email@example.com, 22.05.2007
112 insurers from European Union are interested in Romania
The number of insurance companies from the European Union which have
notified their intention of operating in Romania to the Insurance Supervisory
Commission exceeded 100.
So, 112 insurers have announced the Romanian authority regarding the
possibility of activating on the insurance market without to be under
its supervision. Among these, there are companies from neighbor countries
as EUROINS from Bulgaria, but also 4 insurers from Hungary.
Remarkably is the wave of notifications that were made in May, after
at the end of April only 66 insurers expressed their intention of operating
on the Romanian profile market.
In the same time, 93 intermediaries in the field remitted notifications
to CSA, as the subsidiary MARSH from Netherlands, AON Denmark, NORWICH
Union and LLOYD'S &PARTNERS. According to estimations, the number
of companies which express their intention of entering the Romanian insurance
market, will grew rapidly in the following period.
This forecast is sustained by the large number of companies, which notified
the supervisory authorities of the countries, which adhered to the European
Union in 2004. Thus, during 1 year and a half, in Slovakia 329 insurers
had notified their intention, in Slovenia 220 companies and in Hungary
5,000 agents prepared to sell private pensions
The number of marketing agents authorized by the Supervisory Commission
of Private Pension System reaches 5,000.
This way, until now a sale force of 4,858 is ready to convince people
to buy private pensions.
According to the data on the site of Supervisory Commission of Private
Pension System a number of 2,211 are from ALLIANZ - TIRIAC Pensii Private,
company which starting with the 4th of June 2007 began to sell for the
first facultative pension fund, AZT Moderato.
In a top of authorized agents number made by the Supervisory Commission
of Private Pension System, the second place is held by ING with 2,005
AVIVA has for the moment 611 agents, while BCR Life has authorized 26
In the same time, AON is the only intermediary prepared for the sale
of pensions, the company having 5 marketing agents.
However, in the next future, we should expect an increase of authorizations,
taking into account that companies which are preparing for sale of private
pensions, announce a sale force of 10,000 agents.
by firstname.lastname@example.org, 5.06.2007
Motor Third Party Liability grew 19.32%
In the first quarter of 2007, the MTPL market registered a real growth
in national currency of 19.32% according to the data published by the Insurance
The nominal increase in EUR was 30.23%.
The authorized companies on this class underwrote an amount of 645.13 million
premiums (EUR 190.51 million)
After the first 3 months the leader of this segment is ASIROM, with RON 112.43 million (EUR 33.2 million) written premiums, followed by OMNIASIG
with RON 91.52 million and UNITA with RON 82.79 million.
At the moment, in Romania there are 16 authorized companies on the MTPL
segment, the most recent name added to this list being CLAL Romania.
Also, according to the recent reports of the Insurance Supervisory Commission,
6 companies from the European Union notified their intention of operating
on the MTPL segment in Romania. Those 6 insurers are from Great Britain
among these being NORWICH Union, QBE Insurance and XL Insurance.
The Romanian insurance market's results for 2006 (audited) and those preliminary
of the Q1/2007 are available for download on the Insurance Profile review's
web site :
by email@example.com, 4.06.2007
Another company enters the private pensions' ring
INTERAMERICAN has handed in the request for the authorization of its
private pension company, which will operate both on Pillar II and Pillar
III. The leader of the new entity, called INTERAMERICAN Pensii, will
be Frans van der ENT, a specialist with over 12 years experience in
"INTERAMERICAN has decided to enter the private pension market because of its
great potential and especially because of the pensions' reforms", Frans van der
With a social capital of EUR 5.5 million and a new headquarter, the company
is going to have in the next 2 months around 60 employees dedicated to
private pensions. Also, EUR 1 million will be invested in advertising-
promotion actions of the offered funds.
The company's business plans indicate that it is going to register losses
in the next 3 years as a result of the investments in the expansion of
the clients' base.
The company will have an equilibrate approach as concern the fund's administration
as for the portfolio to have a low risk degree. The fund's placements
will be 35%in government bonds, 20% on the capital market, 20% in corporative
bonds, 15% in municipals and 10% in treasury bonds.
by firstname.lastname@example.org, 31.05.2007
Private health insurance - substantial change or cosmetics?
"We need a large private health insurance system, for all people... The growth
of this segment will occur when the entire population has access to these services
and not only the high class", Marian Sorin PAVELIU, Deputy of the Romanian Parliament
concluded at the Private Health Insurance Day of FIAR - International Insurance
and Reinsurance Forum.
"For the moment, there is an operational legal frame and a possibility of deduction
of the private health insurances' expenditures from the employer's point of view.
However, they must understand this is a frame law and it needs an interpretation...",
the quoted official stated.
Yet, the change can't be made only by the political class. It's necessary
that insurers interact with it, make proposals in order to get to a fitted
formula for all", Marian Sorin PAVELIU added referring to the private
health insurance law.
Also, PAVELIU stated that the lack of substantial funds for the modernization
of medical services both from the equipment point of view and professional
personnel, makes the only solution to be the change of the system, which
gets through a financial crisis.
The health insurance industry ready for reform
The reform in the health insurance system must rely on the public-private
partnership, which should have as base a series of bi or trilateral
partnerships between insurers, medical services providers, Insurance
Supervisory Commission, National House of Pensions and Other Insurance
Rights, Ministry of Public Health and other directly involved parts",
Dan CONSTANTINESCU, Member of Council of Insurance Supervisory Commission
declared during the Private Health Day of FIAR.
In order for the system to function, it's necessary a clear delimitation
of the responsibilities of all involved parts and a concerted action
of the partners. Also, the complimentary and supplementary health insurances
can't be defined exactly in case of a base package lack", the official
Sorina NICULESCU, General Director of SIGNAL Iduna Services added: "Beside,
the obvious need of a clear defined base package, it's compulsory to
be extended the deductibility of the private health insurances to natural
persons and not only to employers. Thus, it may be possible to exceed
the modest penetration degree registered at the end of the last year.
In 2006, private health insurance segment had a real increase of 68.22%,
to RON 46.2, million representing the most spectacular evolution in the
whole Romanian market. However, it had a 0.81% weight in the total amount
of premiums (0.19% more than in 2005).
In the first quarter of 2007, health insurances registered RON 11.33
million, up with 20.13% than the similar period of 2005.