Back to

XPRIMM News No. 173, February 24th, 2011


XPRIMM News - The Romanian Insurance Market Newsletter
No. 173, February 24th, 2011

Household insurance - out in the street

In economically uncertain times, protection of property and goods becomes of special significance for everyone of us. If, initially, population correctly perceived the need for household insurance, recent contradictory messages are forcing the Romanians, cautious and suspicious by nature, to remain in expectation until regulations and messages become more consistent...

In the context of a still very low level of information and of inconsistencies in the system, at a time when people need concrete data more than ever, this week takes place the first information campaign on household insurance.

Run during 21st-27th of February 2011, this is the largest campaing of information and education for the population regarding the safety of their houses, placing special emphasis on the voluntary and mandatory insurance component, the procedures to be followed in case an insured events produces and how to obtaining compensations.

Campaign brochure will address the differences between mandatory household insurance and voluntary one, the main issues that a houseowner needs to know if he wants to insure his home, and general safety rules need taken into account.

Thus, the brochure will be distributed free, throughout the campaign, in all major intersections in the capital and in the main 15 cities in the country, in metro stations and major shopping centers.

The campaign is started by the Bucharest Prefecture, PAID - the Romanian Insurance Pool Against Disasters, APPA - Association for Promoting Insurance and it benefits from the support of all important insurance and brokerage companies operating in the field. Media coverage of the campaign message is delivered by Radio EUROPA FM, TVR Info,, and

The main challenge for the brokerage market is to maintain at the same values as in the past years, under the circumstances in which the insurance market will probably decrease by over 10%.

Managing Partner, SAFETY Broker
XPRIMM: What are the main challenges that the insurance brokerage market has to face in 2011? How did the perception of clients regarding the role of the insurance consultant change over the last year?
Viorel VASILE:
The main challenge for the brokerage market is to maintain at the same values as in the past years, under the circumstances in which the insurance market will probably decrease by over 10%. Due to massive restructuring and mergers on the insurance mediation market, there were created the premises for the brokerage market development. There is a tendency to develop nationwide brokerage networks, development based on professional sales force among the insurers.
Insurance consultants began to be increasingly better seen, especially after the emergence and escaladation of the economic crisis. The customers tendency to choose only one insurer brand (usually, reputable companies) has disappeared and the customers started to choose the insurers recommended by consultants, that have fair prices, adapted to the crisis.
Insurance consultant's role is to assist the customer in case an insured event will occur and here is the difference between insurance agents, who only issue insurance policies, and insurance brokers, who have dedicated after sales service on the claims part.


poza_CSA_feb2011The first review of the Romanian insurance market in 2010
The decrease of the volume of gross written premiums in the previous year is not surprising in the context of the evolutions from other markets, said Angela TONCESCU, President, ISC, in the opening of the event "The review of the Romanian insurance market in 2010". "These figures reflect the activity of operators in the market that, during a year of crisis, have managed to obtain these results. I want to give my positive appreciation regarding the work done by all insurance companies in Romania", she added.

bani_lupaIn 2010, the crisis has dropped the insurance market below the EUR 2 billion threshold
According to preliminary estimates made by INSURANCE Profile, the insurance market has dropped down, in 2010, below the EUR 2 billion total gross written premiums. Insurance companies in Romania have underwrote last year gross written premiums whose value is estimated at EUR 1.96 billion, with about EUR 133 million less than the amount recorded in late 2009.

grafic6Romania, a market with potential; we are on the penultimate place in Europe regarding the degree of insurance penetration in GDP
Romania is on the penultimate place in Europe regarding the degree of insurance penetration in GDP, according to an ERSTE Group Report. While in other countries from Central and Eastern European region, as the Czech Republic, a penetration rate of over 4% is recorded, in Romania it has not exceeded 2% in 2009, the market presenting thus a strategic interest for investors.

marie_kovarova1GENERALI Asigurari and ARDAF will merge under the name of GENERALI Romania, to enter TOP 5 insurers
The GENERALI representatives in Romania have announced on the 18th of February their intention to merge the two group companies held on the local market, GENERALI Asigurari and ARDAF. The new entity will be called GENERALI Romania, but it will activate on the market with two independent brands, GENERALI and ARDAF, also maintaining the two sales networks. The merger will strengthen the GENERALI group's position, the growth in market share under these circumstances going to "propel" the new company in Top 5.
The merger offers a great develpoment perspective for the benefit of customers, employees, sales networks, partners and shareholders, according to company representatives.

cornelia_coman2ING Asigurari de Viata increased by 3% in 2010, but the profit was reduced to half
On the life insurance segment, 2010 has brought positive evolutions in what retention is concerned and an increased appetite for products that offer multiple benefits. In this context, ING Asigurari de Viata has ended the year with an increase of 3% compared to 2009, as the volume of gross written premiums rised to RON 543.4 million, while gross profit decreased to RON 46.47 million, from RON 92.7 million in 2009.
"The result is consistent with our set objectives and was influenced by projects such as the launch of new products, expanding distribution channels and increasing benefits and services offered to clients, along with investments generated by the significant development of the Pillar III activity", the company stated.

GROUPAMA fell by 9.1% in Romania, in 2010
GROUPAMA, the third European player on the Romanian insurance market, represented locally by GROUPAMA Asigurari and OTP Garancia, ended 2010 with business of EUR 192 million, 9.1% less compared to previous year, according to a report published by the French group. This evolution is attributed to decisions taken by the authorities to counter the severe effects of the economic crisis, decisions that have led to lower purchasing power and, hence, the credit freeze and the collapse of the leasing market.
The portfolio of RAI Asigurari is transferred to ARDAF
The Insurance Supervisory Commission has approved the transfer of the general insurance portfolio of the company Roumanie Assurance International (RAI Asigurari) to the company ARDAF, decision that was published in the Official Gazette, Part I, no.103 of February the 9th, current year. Thus, all 649 insurance contracts issued by RAI Asigurari until July 31st, 2010, and which were in force at the time of writing the delivery and receiving document, respectively December 28th, 2010, have been transferred.
BCR Asigurari VIG goes from iPhone Insurance Assistance to Smartphone Insurance Assistance
After the premier launch of "iPhone Insurance Assistance", a new BCR Asigurari premier is being launched today: the "BCR Asigurari VIG - Insurance Assistance" application, on the Android platform.
Innovative insurance products can hardly find their place in a decreasing market
The economic context has lead to consumers budget cuts, including of the sums assigned for insurance. Insurance companies customers have less spending power, in the context in which not even before was insurance a priority in people's budgets.
kazakhstan1International Conference "Insurance in Central Asia" at its 5th edition
The 5th International Conference "Insurance in Central Asia", which has become a tradition for leaders in insurance and reinsurance in Central Asia, CIS countries and Central and Eastern Europe, will be held on March 3rd-4th in Alma-Ata, Kazakhstan. PRIMM Insurance & Pensions Magazine supports the event as Media Partner.
The conference will be attended by local and international insurance companies, reinsurers, brokers, IT companies and officials of the supervisory authority.
Among the topics to be addressed we find: the regulatory practices of the insurance market in the region, analysis of economic crisis on the profile market in Central Asia, developing effective coordination strategy and the evolution of financial risk insurance and reinsurance in local markets.

bulgaria3Bulgarian insurance market fell by 10% in 3Q/2010
EUR 730.6 million totaled the insurance market in Bulgaria during January-November of 2010, with a decline of over 10% (EUR 27.2 million) in comparison with the similar time of 2009, according to the financial data published by the supervisory authority. Meanwhile, the volume of claims paid by insurers amounted to EUR 363 million in August, down 2% compared to the previous year.

Insurance market in Belarus rose by 26.1% in 2010
Insurance companies in Belarus recorded in 2010 gross written premiums worth USD 446 million, increasing by 26.1% in comparison with 2009, showed the data provided by the Ministry of Finances.
The underwritings volume on the voluntary insurance segment grew by USD 50.1 million, up to USD 223.1 million, and on the mandatory insurance segment - by USD 24.1 million, reaching USD 223.2 million.
Zero commission for the MTPL policies sold by Bulgarian brokers
Insurance brokerage societies in Bulgaria currently take no commission for the MTPL policies, announces the INVESTOR.BG web-portal. Also, according to it, many Bulgarian insurance companies have not yet established the commissions for MTPL brokers for this year, thus a significant number of brokerage companies register zero commission in the accounting reports.
Croatia: Insurance market fell in January
In January 2011, 26 Croatian insurers registered an underwritings volume of EUR 115.8 million, dropping EUR 10.12 thousand from January 2010, according to the preliminary data remitted by the Croatian Insurers Office.
AGEAS enters the Turkish general insurance market
AGEAS (former FORTIS) has signed an agreement last week with SABANCI Holding, a leader of the industrial and financial markets in Turkey, to purchase a 21% share of AKSIGORTA AS, the fourth general insurance company at local level, with 8% market share.
Exports save Romanian economy
Romanian electronic products are the best-selling products for export, replacing car parts, which had held the lead position until 2009, according to
PETROM - over RON 2 billion net profit
The oil company OMV PETROM reported, last year, 2.6 times higher net earnings, of RON 2.19 billion, and a 16 pc rise in sales, as a consequence of the rising crude oil prices and of a more effective refining and marketing activity, Mediafax reports.
2010 was the year with steepest air traffic rise in Romania
Air traffic growth in Romania, as well as Europe was extensively debated during the second edition of the "Romania, Open Sky" event organised by "Nine O'Clock" in co-operation with the Romanian Air Traffic Services Administration ROMATSA.
DACIA Duster gets three stars in Euro NCAP crash tests
DACIA Duster has scored three stars out of five in the Euro NCAP crash tests, scoring 74 percent in adult occupant safety and 28 percent in pedestrian safety, Mediafax informs. DACIA Duster also scored 78 percent when it comes to child occupant safety and 29 percent when it comes to safety assist.

President: Sergiu COSTACHE CEO: Adriana PANCIU
Business Development Director: Alexandru D. CIUNCAN

Editor in Chief: Mihaela CIRCU
Scientific Advisor: Daniela GHETU
International Column Coordinator: Andreea IONETE
Senior Editors: Vlad PANCIU, Oleg DORONCEANU
Editors: Vlad BOLDIJAR, Oana RADU, Mihai CRACEA, Andreea STATE
Junior Editor: Dora ALECU, Olesea SERGHIESCU

Accounts Manager: Georgiana OPREA
IT Department: Octavian GRIGOR, Dorin PALADE, Cosmin ARMASESCU



Reproduction or use without permission of editorial or graphic content, in any manner, is prohibited. The Editorial Staff is not responsible for the truthfulness or the accuracy of the presented data. The Editorial Staff has the right to present the data in it's own manner. In what concerns the use, in any manner, of the information contained in this e-mail, Romanian laws apply.

Copyright©2011 Media XPRIMM
Click here to subscribe!
Click here to unsubscribe!
Special Report CEE, RUSSIA & CIS



Reinsurance companies


Insurance companies
BCR Asigurari de Viata

Insurance mediation companies
Safety Broker

Services for the insurance market
V International Conference "Insurance in Central Asia"
March 3rd-4th, 2011
Alma-Ata, Kazakstan
Media Partner: PRIMM Magazine - Insurance & Pensions
For details:
CEE Insurance and Pension Funds 2011
March 8th, 2011
Warsaw, Poland
Organizer: East Euro Links Events
Media Partner: PRIMM Magazine - Insurance & Pensions
For details:
International Reinsurance Conference - 15th Edition
March 24th-25th, 2011
Moscow, Russia
Organizer: ARIA
Media Partner: PRIMM Magazine -Insurance & Pensions
For details:
International Insurance Mediation Conference - 1st Edition
March 28th-29th, 2011
Istanbul, Turkey, HYATT Hotel
Organizer: Media XPRIMM and Istanbul Underwriting Center
With the Official Support of: UNSICAR
With the Support of: SAIPRO and INSMARKET
Official web-page:
VII International Risk Management Conference
April 14th-15th, 2011
Alma-Ata, Kazakstan
Organizer: EURASIA Insurance Company
Media Partner: PRIMM Magazine -Insurance & Pensions
For details:
Tashkent International Insurance Forum
April 14th-17th, 2011
Tashkent, SAIPRO
Organizer: Media XPRIMM
Media Partner: PRIMM Magazine - Insurance & Pensions
Official web-page:
II Central European L&H Leadership Forum
May 17th-18th, 2011
Vienna, Austria
Organizer: Russian POLIS Information Group
Media Partner: PRIMM Magazine - Insurance & Pensions
For details:
FIAR - International Insurance-Reinsurance Forum
May 23rd-26th 2011
Sinaia, Romania
14th Edition
Organizer: Media XPRIMM
Official web-page:
3rd CEA International Insurance Conference - "Insurance reform: opportunity or threat?"
June 16th, 2011
Divani Apollon Palace & Spa, Vouliagmeni, Athens, Greece
Organizer: CEA - Comite Europeen des Assurances
For details:
- (asigurari)
- (pensii private)