Romania’s insurance market up 4.8% in Jan-Sep

Romania's general and life insurance market reached approximately RON 8.5 billion (EUR 1.75 bln) in the first nine months of this year, up 4.8% compared to the same period of 2019, announced Valentin Ionescu, member of the Financial Supervision Authority's top management in an online conference.

"Despite the restrictions imposed by the pandemic that impacted the market, the insurance market grew by 4.8% in the first nine months, accumulating written premiums of approximately RON 8.5 bln," Ionescu said, quoted by Profit.ro.

In 2019, the insurance companies authorized and regulated by ASF recorded gross premiums amounting to approximately RON 11 bln, 8% higher than the previous year.

The risks faced by Romania's insurance market are at a medium level but increasing due to the uncertainty generated by the global crisis, according to the updated report on the stability of non-banking financial markets (H1, 2020), published on December 9 by the Financial Supervisory Authority(ASF).

The business risk has increased due to the evolution of the pandemic, while the profitability and solvency risks have remained at a medium level, the report says.

Prolonged low interest rates may have a double impact on assets and liabilities, particularly on life insurers, with negative consequences on companies' solvency and financial position.

The insurers' assets recorded a positive dynamic, with an increase in the surplus of assets over debt - the main component of Tier 1 items related to equity eligible to cover capital requirements.

The evolution of the combined damage rate in the first half of 2020 indicated a slight improvement in profitability in the non-life insurance segment but remained supra-unitary for the main CASCO and RCA - CMR insurance classes.

The risk of concentration remains high, both in the entire insurance market and in the main classes of general and life insurance.

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