According to him, "the economy returned to recession in the first quarter of the year, so the end of the year will reveal whether new pressure was placed on the insurance industry".
Protecting and maintaining the asset base is a key priority this year. "The insurance market is a strategic industry for the national economy. The total asset base was RON 16 billion in 2010 and increased, despite the crisis from these past years. For instance, the insurance market contributed EUR 1 billion through investments in state assets", added Rangam BIR.
This year, the bottom line of the insurance market will also be strongly influenced by the exchange rate. "The variation of the exchange rate, now close to RON 4.5 for one euro, will impact consumption, as well as the constantly increasing claim costs".
Last but not least, non-life insurance, particularly the motor segment, is the main challenge for the insurance industry, given its tariff policy: "Customers think these policies are too expensive, while companies believe they are too inexpensive. The past decline of the insurers' business volume impacted the cash flow directly and pricing was used to offset this trend. Even though prices go up, claims and the limits of liability will follow suit, which is also reflected in the higher number of complaints."
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