STATISTICS: ROMANIA, 1H 2023: Raising contribution to the market GWP of the foreign subsidiaries operating on FOE

12 October 2023 — Daniela GHETU
STATISTICS:  ROMANIA, 1H 2023: Raising contribution to the market GWP of the foreign subsidiaries operating on FOE

Romanian insurers ended 1H 2023 with GWP worth EUR 1.83 billion, 3.28% more y-o-y, data provided by the Romanian Financial Supervising Authority (ASF) show. Out of this total GWP volume, life insurance provided EUR 305 million, while non-life insurance classes generated EUR 1.52 billion.

The total value also includes the gross premiums subscribed by EUROINS Romania in the first quarter of 2023. Gross premiums written by Romanian insurers abroad account for about 0.6% of the total business volume. Also, one should note that the total figure only includes the premiums production of the insurance companies under the ASF authority. In addition to that, insurance companies authorized in other EU member states and operating in Romania based on the right of establishment (FOE), wrote GWP worth EUR 276 million, up by 40% y-o-y, thus adding an extra 13% to the total GWP figure. Overall, the market reached EUR 2.1 billion.

Paid claims reached EUR 776.65 million, only 1.9% more y-o-y. In addition, the Insureds’ Guarantee Fund has approved payments worth EUR 74.8 million. Finally, foreign insurers operating in Romania based on FOE have paid indemnities in an additional EUR 68.3 million volume.

In GWP terms, motor insurance lines saw an overall stagnation period, but a closer look will show Motor Hull GWP increasing by 17.4% y-o-y, to EUR 331.36 million, while GWP for MTPL insurance decreased by 5.8% y-o-y, to EUR 821 million. However, one should note that the ASF figures only include the business results of the domestic players (insurers authorized and supervised by ASF). On the Romanian MTPL market there are also two foreign subsidiaries operating on FOE, that added to this total EUR 122.24 million, which is 2.4 times more y-o-y. As such, GWP for MTPL insurance amounted to EUR 943.24 million, about 2% more y-o-y.

On the property insurance side, GWP increased by 16.2% y-o-y, to EUR 199.75 million, most of this growth coming from the “fire and allied perils” class, which includes the mandatory insurance against natural catastrophes, facultative housing insurance and facultative insurance of commercial properties. The number of active contracts by the end of June slightly increased y-o-y both on mandatory policies’ side (7%) and the facultative one (1.2%).

Access and download the Q1 2023 Romanian market statistics in RON and EUR:

  • GWP/CLAIMS portfolio per insurance classes
  • Market rankings: total, life, non-life, MTPL