First online conference of the insurance market in Romania

7 May 2020 — Daniela GHETU
In the context created by the COVID-19 outbreak, XPRIMM organized today the first online conference of the insurance market in Romania, under the titles "INSURANCE, PANDEMIC, ECONOMY - Intelligent Solutions Born of the Crisis", putting under review the solutions found by companies to cope with the social distancing measures, as well as of the impact on the insurance industry's business results.

Nicolas JEANMART, Head of Personal and General Insurance, Insurance Europe
  • It is difficult to know what the long-term consequences on the insurance sector will be
  • The industry has reacted very fast in protecting its customers and employees
  • Motor insurance - traffic has decreased in many countries, but in some countries, it has been reported that many drivers are speeding, which means that in number of road incidents there is no significant difference; on the other hand, prices of spare part have increased in many countries
  • Business Interruption is a challenging issue - there where it is included, as in event cancellations, it is driving very high loss payments; where it is not specifically included, it raises many debates
  • Once the activity will be resumed on a large scale, there is to be expected an increase in claims
  • The economic effects of the Covid crisis will probably last a rather long period, insurance industry included
Gorazd CIBEJ, Director, AZN - Slovenian Supervisory Authority, Regional Coordinator, IAIS
  • Financial markets are characterized by high uncertainty, increased volatilities for bond and equity markets; Insurers were negatively affected on both asset and liability side.
  • Financial markets are characterized by increasing risk premium and flight to quality investment behavior; Credit risk has increased for all market segments
  • Financial markets are characterized by increasing risk premium and flight to quality investment behavior; Credit risk has increased for all market segments
  • EIOPA expects all market participants to continue to act in the best interests of consumers, throughout the lifecycle of their relationship with the consumer. This is in line with the requirements on policyholder protection set out in relevant legislation such as Directive 2016/97 on Insurance Distribution (IDD) and Directive 2009/138/EC (Solvency II Directive).
  • EIOPA does not foresee a conclusion in favor of a specific action such as mandating refunds to policyholders, as has been observed in some Member States and in North America, EIOPA considers POG measures are indeed best suited for addressing this situation.
  • The Slovenian market authority eased the reporting rules for insurers and lately switched to monthly reporting after April; it has also required the postponement of dividends and share buybacks till 1st of October
Adrian MARIN, President, UNSAR
  • A recent survey showed that Romanian consumers have mostly financial concerns, 47% of them trying to delay large purchases; a similar percentage (42%) are worried about losing their jobs; health is also one of strong reasons of concerns, 55% of them fearing their physical wellbeing, while 70% are concerned about their family health
  • The Romanian insurance industry has made overall contributions of more than EUR 550,000 so far to support the national fight against the pandemics, has purchased medical equipment for hospitals, has directed sponsorships towards the healthcare system and made donations to support the independent cultural sector
  • In support of its clients, Romanian insurers have dedicated online tools for purchase and extensions for claims made remotely; made extraordinary policies' adjustments to cover pandemic risks; showed flexibility in delaying payments for optional insurance products, provided continuous consultancy by regularly updating UNSAR FAQs page on the association's website and social media
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