STATISTICS: ROMANIA, 1H2019: paid claims growth has outpaced the premium production increase

12 September 2019 — Daniela GHETU
STATISTICS: ROMANIA, 1H2019: paid claims growth has outpaced the premium production increase
After the first six months of 2019, the Romanian insurers aggregate premiums production increased y-o-y by 6.13%, to EUR 1,148.6 million. Paid claims increased by 17.55%, to EUR 708.35 million. Motor insurance lines had the largest contribution to both GWP and paid claims increase.

By the end of 1H, there were 28 insurance companies active on the Romanian market: 15 non-life insurers, 7 life insurers and 6 composite companies. In addition, 11 branches of foreign insurers were operating on FOE, accounting all together for a total GWP volume of about EUR 96 million. Premiums written by Romanian insurers on other markets are holding an about 2% share of the market GWP, a small share but which has almost doubled y-o-y.

Life insurance maintained its "traditional" share in the market portfolio, of about 21%, with GWP amounting to EUR 237.54 million (3% up y-o-y).

About three quarters of the non-life business were provided by the motor insurance lines. Thus, of the total non-life GWP, of EUR 91 million (about 7% up y-o-y), an amount of EUR 656.53 million came from the motor segment: the MTPL GWP amounted to EUR 425 million (3.2% up y-o-y), while on the Motor Hull class GWP went up by 9.2%, to EUR 231.5 million.

The bad news came from the paid claims side, where almost all classes have seen double-digit growth rates in the claims expenses. Overall, there is a discrepancy between the premiums and claims growth rates. For example, on the MTPL line, while the average premium went by about 2% y-o-y, the average claim increased by 11.7%. The average claim paid for bodily injuries on the MTPL class decreased by 13%, while for material damages the average claim value increased by 16%.

In the first half of 2019, insurance and / or reinsurance brokers have intermediated about 64% of the total volume of gross premiums written by insurers, in a slight increase compared to the similar period of 2018 (about 62%).

* Presented figures were converted at the following exchange rates:
1 EUR = 4.7351 Lei - RON (June 30th, 2019)
1 EUR = 4.6611 Lei - RON (June 30th, 2018)

Access and download the 1H2019 Romanian insurance market statistics, in RON and EUR.