Romania's new insurance market leader controlled for solvency

12 September 2016

Asirom VIG, the new leader of the local insurance market, is currently being controlled by the Financial Supervisory Authority (ASF), according to market sources cited by local Profit.ro.

ASF is checking the company’s solvency ratios as well as its way of calculating reserves and premium rates.

Juraj Lelkes, the insurer’s president, was asked two weeks ago if he knew something about the control, and he replied that he held no information about that. The control hadn’t yet begun at that time.

Asirom has registered strong growth on the mandatory car insurance segment (RCA), after the bankruptcies of Astra Asigurari and Carpatica Asig. It took over a large part of the customers of the two bankrupt companies and also took advantage of the problems faced by City Insurance and Euroins, two other big players on this segment.

Asirom is now trying to rebalance its portfolio, because the RCA share got too big. The company has thus decided to significantly diminish the fees paid to RCA brokers. Instead it has increased the tariffs for selling optional car insurance policies (CASCO), as well as house insurance policies.

In the first three months of this year, Asirom announced the three-digit growth of RCA sales. This propelled the company from the fifth place to the first place in the market.

Asirom VIG wrote gross premiums of EUR 84 million in the first three months of the year surpassing the market leader Allianz-Tiriac.

editor@romania-insider.com

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Romania's new insurance market leader controlled for solvency

12 September 2016

Asirom VIG, the new leader of the local insurance market, is currently being controlled by the Financial Supervisory Authority (ASF), according to market sources cited by local Profit.ro.

ASF is checking the company’s solvency ratios as well as its way of calculating reserves and premium rates.

Juraj Lelkes, the insurer’s president, was asked two weeks ago if he knew something about the control, and he replied that he held no information about that. The control hadn’t yet begun at that time.

Asirom has registered strong growth on the mandatory car insurance segment (RCA), after the bankruptcies of Astra Asigurari and Carpatica Asig. It took over a large part of the customers of the two bankrupt companies and also took advantage of the problems faced by City Insurance and Euroins, two other big players on this segment.

Asirom is now trying to rebalance its portfolio, because the RCA share got too big. The company has thus decided to significantly diminish the fees paid to RCA brokers. Instead it has increased the tariffs for selling optional car insurance policies (CASCO), as well as house insurance policies.

In the first three months of this year, Asirom announced the three-digit growth of RCA sales. This propelled the company from the fifth place to the first place in the market.

Asirom VIG wrote gross premiums of EUR 84 million in the first three months of the year surpassing the market leader Allianz-Tiriac.

editor@romania-insider.com

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