The insurance market heads for EUR 2 billion
The Romanian insurance market exceeded, in 2006, a 1,65% penetration rate
in GDP, comparing to 1,54% in the previous year. Thus, the insurance companies'
volume of gross written premiums reached RON 5,740 million (EUR 1,6 million),
up with 34% comparing to the last year's results.
"We estimate that this year the insurance market will have a 25-30%
development rate", Angela TONCESCU, Insurance Supervisory Commission's
President stated during the seminar "Romanian insurance market. Past
and present. European challenges". So, if this estimation will become
true, the market will surpass EUR 2 billion at the end of this year.
The general insurances registered RON 4,6 million ( EUR 1,3 billion),
up with 40%.
With EUR 0.3 billion, life insurances increased only 13%.
"We believe that the life segment's enhance registered in 2007 will
be more significant and so its weigh in whole insurances will change",
Angela TONCESCU stated.
At the end of 2006, there were 5,3 million life insurance contracts and
7,6 million life policies.
As usual, in 2006, motor insurances dominated the Romanian insurance market
The most important growth was obtained by health insurances which registered
a 208% increase.
In 2006, the paid damages were EUR 0.74 billion from which EUR 0,7 billion
on general insurance segment.
Insurers are confronting with a problem represented by damages. Thus,
the average damage rate on the general insurance segment was 65%, but
eight insurance companies registered over 70% of this indicator.
However, according to the estimations of Cristian CONSTANTINESCU, the
President of the National Association of Insurance and Reinsurance Companies
from Romania, insurance market, as a whole, ended 2006 with a loss, after
it obtained a profit rate below 1% in 2005. This estimations will be confirmed
or not by the audited results.
by email@example.com, 23.02.2007
2006: Changes in Top 10
ASIBAN changes its place with ING Life and climbs to 4th place, ASTRA-UNIQA
grows two positions and gains 1.46% in market share, while GENERALI gets
up two places and realizes the second increase in absolute value.
UNITA drops two places and loses 1.16% from market share and the new acquisition
of Czech from PPF, ARDAF, leaves its position in the top in favorite of
BT Asigurari. This kept its development rhythm, succeeding more than doubling
its written premiums and gained 1.34% from market. So, these are the changes
in the Top 10 of the last year.
Last year, the value of the gross written premiums was EUR 1.62 billion,
meaning RON 5.72 billion calculated to the average exchange course of
3.52 RON/EUR. The insurance market grew almost 34% in national currency
while the real increase being 23,6%.
In absolute value, the insurance companies underwrote with EUR 405 million
more than 2005.
The first 10 companies in the market underwrote an amount of gross premiums
of EUR 1.31 billion, meaning 80,79% from the market in the analyzed period.
Though 6 from the 10 companies diminished their market share, the concentration
degree grew to 0.38% comparing to 80.41% in 2005. The other 4 companies
increased their market share in 2006 and had a great contribution to maintain
the concentration degree to 81%: GENERALI +2.3%, ASTRA +1.46%, BT Asigurari
+1.34% and BCR Asigurari, which though dropt life insurances, enhance
its market share with 0,68%.
ALLIANZ-TIRIAC continues to be the leader, with a 19,49% market share.
Also, ALLIANZ-TIRIAC is the first company which exceeded RON 1 billion.
The company underwrote in 2006 almost RON 1.12 billion (EUR 317 million)
, with 22.72% more in real growth, in national currency, than 2005. The
nominal increase in EUR was 32.31%. The insurer had the most important
growth in absolute value, adding EUR 77 million to the results of 2005.
The entire results of the Romanian insurance market can be read in the
No. 2/2007 of the Insurance Profile Magazine.
For online order, click
by firstname.lastname@example.org, 6.03.2007
Good signs for the insurance industry
More than half of the Romanians consider private insurances a good alternative
to the social insurance system, according to a survey realized by INSOMAR,
in OMNIBUS regime, to the request of the Insurance Supervisory Commission,
during 18-23 January 2007. Thus, their weigh reached 59%, up with 13%
comparing to April 2003, when a similar survey took place.
12% of population bought a life insurance, comparing to 8% in 2003, the
majority from these being from urban zone, Transilvania and Bucharest,
and having high education and age between 18 and 34. The percent of those
who believe in the benefits of this type of insurance registered a slow
increase from 64%, four years ago to 65.6% .
About 67% of population, irrespective of age, education or region appreciates
that a health insurance is very helpful.
From those possessing a car, 85% have a motor third party liability, 23%
have a motor hull and 8% have no motor insurance.
12.8% of Romanian population bought a household insurance, in comparison
to 7% in 2003, most of them being from urban zone, having high education
and the maximum age 50.
In the end, the percent of people who agree the implementation of compulsory
household insurance exceeds 60% comparing to the 38% of the previous survey.
In addition, we would like to mention that the weigh of the positive percents
passed 50% both in urban and rural zone.
by email@example.com, 23.02.2003
Life insurance, RON 3 billion in 2010
"In 2010, the amount of gross written premiums from life insurances
will reach almost RON 3 billion and a weigh of 30% in the Romanian insurance
market.", Bram BOON, CEO of ING Asigurari de Viata appreciated during
the seminar " Romanian insurance market. Past and present. European
Nowadays, the gross written premiums on life segment grew 24% in comparison
to 6% in 1997. This way, in 2006, life insurances realized RON 1.25 billion.
The proportion with general insurances is below the one from other European
countries, where 60% of this industry's business represents life insurances.
Comparing to the Europe's situation, where the penetration rate is 5%
of GDP, in Romania, this indicator is 0,4%.
The adhesion of Romania to European Union will cause a lot of changes
to the Romanian life insurances, the representative of ING Asigurari de
Viata believes. In this context, the competitiveness and professionalism
on local plan will develop in the same time with the possibility of investing
freely in the European area. The companies present on market will have
the chance to widen their distribution channels.
Among the necessary conditions in order to develop and regulate the profile
market, they can mention, as Bram BOON stated, the increase of the training
standards of the retail agents, the transparency' s enhance in the communication
process with the clients and the application of the new capital requests.
As well, another modification in the life insurance industry is represented
by the change of sell weigh, through agents of own, from 80%, at present,
to 72% in 2010. Instead, the sales of policies through banks, brokers
and Internet will grow. The official of ING Asigurari de Viata declares
that the sales through banks will register the most significant increase,
from 14% at present to 18% in 2010. The brokers and the Internet will
sell with 2% more than at present, reaching 8% and respective 2% in 2010.
by firstname.lastname@example.org, 23.02.2007
EUR 317 million for ALLIANZ TIRIAC
ALLIANZ-TIRIAC Asigurari registered in 2006 an amount of gross written
premiums of EUR 317 million, up with 32% comparing to 2005. The gross
written premiums on general insurances were EUR 292 million, while life
insurances registered EUR 25 million.
According to the preliminary results, ALLIANZ-TIRIAC kept, at the end
of 2006, the leading position on the Romanian insurance market.
According to some estimations made by the officials of ALLIANZ-TIRIAC
at the end of the last year, the insurer's profit was EUR 11.7 million.
by email@example.com, 23.02.2007
ING Life is still on top
ING Asigurari de Viata has, at present, more than 40% of the whole Romanian
life insurance market, with a RON 41.8 million profit at the end of 2006,
which means a 21,3% increase.
"We are glad that we have made a remarkable growth of the market
share, till 41,2%. Also, the 11% enhance of net premiums (RON 434 million)
represents an exceptional evolution for ING Asigurari de VIata, meaning
a 3 times more than the increase rhythm of life insurances in 2006",
Bram BOON, General Manager of ING Life declared.
According to ING's official, the excellent result is due, in the first
place, to the protection products sale's enhancement in the previous year
and to the pension plans' sales.
As regards the objectives for 2007, the company intends "to improve
its imagine and to consolidate its position on the life insurance market,
becoming the favorite provider of life insurances and pensions in Romania".
For 2007, we intend to increase our gross written premiums with 15%, but
we expect to have a smaller profit comparing to 2006 because of the expenses
imposed by the establishment of a specialized company on the private pension
segment", Cornelia COMAN, Deputy General Manager of ING Life explained.
by firstname.lastname@example.org, 1.03.2007
Preparations to implement
The Private Pension Scheme Supervisory Commission (CSSPP) established
the calendar for the implementation of the compulsory private pension.
According to it, in a first phase, the elaboration of the application
norms of Law no. 411/2004 regarding the private pension funds modified
and completed by Law no. 23/2007 will take place. Thus, at the beginning
of 2007, the entities' authorization and appraisal process will begin
and from august 2007, the participants will be able to choose the pension
fund they want to adhere to. From January 2008, the contributions to the
private pension funds will be collected.
CSSPP approved on Tuesday, the 27th of February, the first two application
norms of Law no. 411/2007 as follows: the norm regarding the authorization
of the administrators of private pension funds and the norm regarding
the taxes for authorization, appraisal and functioning of private pensions
system. These two norms were under public debate and were analyzed by
the interested professional organizations and by the social dialog partners.
by email@example.com, 1.03.2007
Insurance brokerage is blooming
"The Romanian insurance brokerage market is blooming and that's why
BIPAR (The European Federation of Insurance Intermediaries) is proud of
the association with the National Union of Insurance Brokerage and Consultancy
Societies from Romania (UNSICAR)", Nic de MAESSCHALCK stated in the
opening of the second edition of National Conference of Brokerage, organized
by UNSICAR, with the Media XPRIMM support.
The conference's moderator and host, Bogdan ANDRIESCU, President of UNSICAR,
highlighted that Romanian brokerage gains more and more ground and in
the same time it has to play by ear as regards the European integration's
"2006 can be appreciated as the year when the market grew to EUR
288 million gross written premiums, and the market share to 20%",
the quoted official added.
He also emphasized that the UNSICAR's members have, at present, 70% from
the Romanian brokerage market.
The European brokerage was the conference's light motive, Angela TONCESCU,
President of Insurance Supervisory Commission, urged the leaders and specialists
: Now, at the beginning of the road , it would be indicated the brokers
to get involved in the population's education"
At the end of the first part, Cristian CONSTANTINESCU, President of he
National Association of Insurance and Reinsurance Companies from Romania
stressed the need for the increase of the professionalism level doubled
by the improvement of the insurer-broker relation.
As a conclusion, they can say that certainly the adhesion to European
Union has not only advantages, but many challenges.
by firstname.lastname@example.org, 5.03.2007
ALLIANZ-TIRIAC, the first on the private pensions market
The Council of the Private Pension Scheme Supervisory Commission (CSSPP)
approved on 6th of March 2006, the request for the authorization needed
to establish the first pension company from the Romanian facultative pensions
market, ALLIANZ-TIRIAC Administrative Company of facultative pension funds.
ALLIANZ-TIRIAC has put in documentations for entering Pillar III on 22nd
"We have made a business plan for the next 10-20 years, our intention
being to become the leader of this segment", Dr. Crinu ANDANUT stated.
Leader of the Romanian insurance market, ALLIANZ-TIRIAC, is also interested
in the second component of the public pension scheme's reform (Pillar
II, compulsory private pensions).
"The financial power of ALLIANZ-TIRIAC and of ALLIANZ Group, the
international expertise to which we have access, through ALLIANZ, on the
European markets and on Central East European region, beside a developed
distribution network are the main advantages we count on gaining the leading
position of this market", the official declared.
"The authorization/appraisal process of the entities from the facultative
pension market, started on 30th October 2006, is a continued process and
those interested can put in requests to CSSPP, along with the documentation
asked by Law no.204/2006 and by its application norms", the CSSPP
In order to be authorized a company should fulfill the following general
conditions: to be established as a joint-stock company, have as unique
activity object collection, administration, investment of the actives
of facultative pension funds and, optionally private pensions' payment;
the name of the society must contain the collocation " administrative
society of facultative pension funds and must not contain elements that
induce in error participants, potential participants or other persons.
In the same time, the social capital must be represented through shares
issues by pension companies, which are nominative, can't be preferential
and can be denominated. The company's status must stipulate that shareholders
can't have preferential rights or other privileges and is forbidden the
rights' limitation or setting out supplementary responsibilities.
Also, it's necessary that participations less than 1% should not represent,
cumulative, more than 10% from the social capital, and the founders must
prove the infusion and the form of it , which must be according to the
laws and norms issued. Those interested have to put in the proof of the
tax payment for the establishment of a pension company.
by email@example.com, 7.03.2007
TENDER sold, PPF bought
TENDER Group sold its participation to the insurance company, ARDAF. The
transaction's value for the 56.19% share package was RON 118.76 million.
The buyer of the 900 million of shares is the PPF Investments Group from
Czech Republic, who purchased RAI Asigurari from Daniel TUDOR, the new President-General
Manager of ARDAF, at the beginning of February.
"The acquisition of the majority shares package of ARDAF is a very
important transaction for PPF Investments on the Romanian market. We consider
this investment strategic and we intend to reposition the company as a key
player on the insurance market", Pavel KUTA, Managing Director of PPF
"I am glad that ARDAF has a powerful investor capable of offering support
for company's reorganization and contribute to its raise both on life and
general insurance segment. Our goal is to be among the first five insurance
companies from Romania", Daniel TUDOR, the new President-General Director
of ARDAF, stated.
The transaction was done through SABILE Limited from Cyprus. SABILE Ltd
is the firm that lent Tender Group to underwrite during the capital's increase
of ARDAF, necessary for the company's redress. In the same time, the Cypriots
have purchased the package hold at ARDAF by the lawyer Daniel VOICU.
Taking into consideration the other shares hold at ARDAF (14.6%), SABILE
became the majority shareholder, with a 70% share package.
ARDAF, was taken out under the financial administration at the beginning
of February, the Council of the Insurance Supervisory Commission observing
the social capital's increase is beyond the minimum requested by the supervisory
authority and needed for the financial reestablishment.
In 2006, ARDAF underwrote RON 194.74 million, 20% less than the last year's
by firstname.lastname@example.org, 2.03.2007