STATISTICS: ROMANIA, 1H2016: Motor insurance lines' efficiency ratios have improved

The Romanian insurance market saw a 9.75% increase in GWP (10.93% in national currency), one of highest dynamics recorded in the last years. Yet, it is worth noting that the positive result is not as much as a result of the Romanian economic growth, but of the complex changes undergone by the MTPL segment.

In relative terms, GWP for MTPL insurance went up by over 18% y-o-y. Considering the number of issued policies went up by only 5.6%, it is obvious that the growth was mainly driven by the raising prices.

Losing two of its major players, known for their very competitive MTPL pricing, and with another two - EUROINS and CITY Insurance -, under special surveillance, the MTPL market saw a significant increase of the average premium level, especially for the corporate clients. Thus, the annual average premium value rose by 13.15%, reaching a five years peak, of RON 793/year (corporate clients - RON 1,729/year).

Efficiency ratios for the MTPL line have also improved, although they are still reflecting a disputable technical profitability. For the first time since many years, the MTPL line saw a combined ratio value closer to the 100% threshold, of 104.26%, while the loss ratio stood at 67.5%. However, it is for the end year results to confirm the positive trend, given the significant influence of IBNR reserves, which are usually estimated on annual basis.

Access www.xprimm.com and download the 1H2016 Romanian insurance market statistics.

Read more about the Romanian insurance market evolution in 1H2016 in the forthcoming issue of XPRIMM Insurance Report 1H2016, to be released on October, 23rd, on the occasion of the Baden-Baden XPRIMM Reception (Kurhaus Casino, Runder Saal).

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

COLONNADE Insurance to start operations in Romania

COLONNADE Insurance, part of the Canadian group FAIRFAX Financial Holdings, officially begins its activity in Romania, following AIG's entry into a strategic partnership with COLONNADE Insurance to manage existing policies for AIG Europe Limited's Romanian Branch.

2018-01-18

ON THE MOVE

TOP EVENT

LIVE: IIS Global Insurance Forum 2018 / Day2

The works of the Global Insurance Forum continued today in Berlin, Germany. Providing security for ageing populations in health care and pensions terms, as well as innovation and InsurTech or innovative strategies for the future development of the industry are on the today's agenda.

10.07.2018

See all