ISC: 2.7% increase for the Romanian insurance market in 1H2012
In the first half of 2012, the Romanian insurance market registered a total underwritings volume of over RON 4.1 billion, increasing by 2.7% compared to the same period last year, according to preliminary results published by the Romanian Insurance Supervisory Commission. Gross written premiums for non-life insurance totalized almost RON 3.3 billion, increasing by 3.54% compared to the same period last year. As far as life insurance is concerned, the gross written premiums volume decreased by 0.38%, totalizing RON 857.1 million as of 30th of June 2012.
“The slight increase of the insurance market which began in 2012 can only be maintained on a long term by consolidating both the risk management policies and those regarding the insurers’ protection. The local and international macro-economic conditions will continue to put pressure on the insurance industry, which will have to identify new protection solutions against continually changing risks”, Constantin BUZOIANU, President of ISC, stated.
At the end of the first semester, on the non-life segment, three insurance lines represented 79.6% of the market: Motor Hull, MTPL and fire and other perils insurance.
At the end of June, Motor Hull insurance represented 28.49% of the non-life market, with a premium volume of approximately RON 933 million, slowing down 6.37% compared to the first semester last year.
MTPL insurance represented 34.5% of the non-life portfolio, with underwritings of over RON 1.1 billion, decreasing with only 0.19% compared to first half of 2011.
The fire and allied perils insurance represented 16.63% of the non-life insurance segment, with a RON 544.6 million volume, decreasing by 10.05% compared to the same period in 2011.
On the other hand, positive evolutions were registered on the following non-life insurance lines:
• health insurance – RON 24.7 million in underwritings, increasing by 118.69% compared to first semester last year;
• general third party liability – underwritings of approximately RON 267 million, meaning a 180% increase;
• warranties insurance – RON 95.2 million in underwritings, increasing by 132.39%.
On the life insurance segment, traditional and unit-linked insurance represented 96% of underwritings at the end of June 2012.
Thus, life insurance, annuities and auxiliary life insurance represented 61.47%, the share corresponding to an underwritings volume of almost RON 527 million, increasing by 2.5% compared to the first semester of 2011. At the same time, unit-linked insurance represented 34.53% of the life insurance segment, the underwritings volume registering an 8.13% decrease compared to the same period last year.
The volume of paid claims reached over RON 2.5 billion in the first half of 2012, registering a nominal increase of 3.07% compared to the same period last year. From the total volume of paid indemnities, those corresponding to non-life insurance contracts reached RON 2.18 billion, increasing by 2.75% compared to the same period last year. The paid sums for gross indemnities, maturities and surrenders corresponding to life insurance totalized RON 356.9 million, increasing by 5.04% compared to January-June 2011.