Romania: The highest compensation paid on a life insurance policy - over 1.18 million lei

25 November 2021 — Cristian SUCA
The highest indemnity paid in Romania on a life insurance policy in 2020 was over 1.18 million lei - for a death. By each type of cover, the top of the highest payments made is completed by a compensation of 839,000 lei, paid for a serious illness, and one of 150,000 lei, paid for a permanent disability, according to UNSAR data.

The role of life insurance is primarily to provide protection against events such as accidents, illness or death, mitigating the financial consequences and thus complementing existing support mechanisms in the public system.

"Insurance is a safety net against everyday risks. Given their essential role, we rely on the support of institutional partners to ensure that this sector continues to develop for the benefits of the population. Thus, granting tax deductibility for life insurance products with an exclusive protection component has the direct effect of reducing the protection deficit of the population", said Adrian MARIN - President, UNSAR.

In the first half of 2021, the volume of gross written premiums in the life insurance segment recorded the highest values since 2017 and so far, significantly increasing by more than 24% compared to the same period of the previous year, exceeding the level of 1.34 billion lei. Thus, the trends noticed last year continue, data published by the Financial Supervisory Authority shows.

"Through their main function, that of protection, life insurance can contribute to reducing family vulnerability and social imbalances. The growing interest of Romanians for these products shows us that they want to be better protected from the risks they are exposed to", stated Alexandru CIUNCAN - Director General, UNSAR.

Founded in 1994, UNSAR - the National Union of Insurance and Reinsurance Companies in Romania -, represents 19 insurance companies. They have a share of about 80% of the local insurance market. UNSAR's activity aims at defending and representing the interests of Romanian insurers and reinsurers, participating in the improvement of the legislative framework in the insurance field, promoting the insurance activity in Romania and promoting the most sustainable development of the insurance industry at home and abroad. Since 2007, UNSAR is a full member of the Federation of European Insurers and Reinsurers - Insurance Europe.

* Data presented are collected from UNSAR Member and non-UNSAR Member insurance companies.

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