As UNSAR, the professional association of the Romanian insurers, explained, “on average, out of every 10 RON collected from MTPL premiums, nearly 8 RON go directly toward covering claims from traffic accidents and the required financial reserves. Beyond these expenses, insurers must also account for taxes, contributions (including to the FGA), policy distribution costs, and administrative expenses—all essential for maintaining business operations.”
Alarming rise in road accidents
The frequency of road accidents continues to climb, exacerbating the financial strain on insurers. Last year alone, the number of MTPL claim files increased by 30%, exceeding 426,190 cases—a stark reminder of the high incidence of road accidents in Romania.
In response, the insurance industry is emphasizing the need for enhanced road safety education and prevention initiatives. A major step forward came with the Chamber of Deputies' approval of a law establishing National Road Safety Week. Under this new legislation, the third week of May will be dedicated annually to promoting traffic awareness and responsibility among drivers, pedestrians, authorities, and civil society.
Regulatory adjustments for market stability
Another key measure under discussion is the revision of Law 132/2017 on MTPL insurance, aimed at protecting accident victims and vehicle owners while ensuring greater market stability. Given that MTPL policy prices are heavily influenced by rising compensation costs, stakeholders argue that legislative adjustments are necessary to balance affordability for drivers with the sustainability of the insurance sector.
As the market faces soaring claims and rising accident rates, industry leaders stress that a combination of regulatory refinements and proactive road safety measures is essential to mitigate risks and maintain financial stability in Romania’s insurance sector.
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