Romanian FSA's head, Misu NEGRITOIU exchanged views with the Austrian insurers' representatives in Vienna

23 February 2017 — Daniela GHETU
Misu NEGRITOIU, President of the Romanian Financial Supervisory Authority (ASF), met last week in Vienna representatives of the Insurers' Association of Austria (VVO), the meeting focusing on the latest developments on the insurance markets in the two countries, as well as specific aspects related to the MTPL business line or Austria's experience in managing the high-risk insured persons.

Considering the provisions of Austrian legislation regarding the mandatory taking over under certain circumstances the high risk insured persons through a mandatory allocation by VVO, points aspects were also discussed related to the reasons for which a company could refuse a potential client, the practices similar to a rejection (e.g. setting up a higher premium), the way to allocate the clients to an insurance company, as well as the procedure the rejected client has to follow.

"We are carefully watching the best practices existing on European mature markets in view of substantiating prospective actions aimed at stabilizing and stimulating insurances market development to a sustainable direction", declared the President of ASF, Misu NEGRITOIU.

In Austria, the share of insurances in Gross Domestic Product amounts to 5.2% (7.7% in European Union), while in Romania, the insurances penetration rate in GDP reaches about 1.2%. Insurances density (the ratio between the value of gross subscribed premiums and the population's size of a country) is of about EUR 2,000 /per inhabitant in Austria, an almost similar level to that mentioned for EU (EUR 2,100 /inhabitant), while in Romania, it is a little over EUR 90/inhabitant. In Austria, life insurances hold a share of almost 40% of total market, followed by hose and building insurances (26%), car insurances (circa 18%), health insurances (11%) and accident insurances (about 6%). In Romania, RCA segment stands for 41.3% of total market, while life insurances hold about 19.4% of insurances market.

Following this meeting, the two sides agreed to continue the dialogue at experts' level, considering the importance of RCA segment on the insurances market of Romania, as well as some joint projects in financial education and road safety.

VVO has been established in 1899 in Vienna and counts at present 126 de members, insurance, and reinsurance companies, which run a volume of gross premiums of over EUR 17 billion and manage a total volume of assets of over EUR 100 billion.

The insurance companies with Austrian capital operating in Romania hold about one third of the local profile market.

The main activities of the association relate to operating functions (motor vehicles registration, Green Card Office, market analysis and information, etc.), the representation and financial education ones. VVO is also involved in special projects regarding road safety and the development of collaboration relations with other countries.

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