80% more expensive car policies prop up Romania’s insurance market
The general insurance market measured by the gross premium subscriptions increased by 54% YoY to RON 3.86 bln, driven by the third-party liability car insurances (RCA) segment that more than doubled, according to the financial markets’ regulator ASF.
The annualised price of the RCA insurance policies surged by 80% YoY, while the annualised number of policies rose by 17% YoY.
What also happened is that, besides the higher prices of the RCA policies, the drivers rushed to prevent paying even higher fees in the future and opted in greater proportion for 12-month policies instead of 6-month policies. Thus, the share of 12-month policies rose from 29% in Q1 last year to 83% in the first quarter of this year.
Overall, the insurance market rose by 46% YoY to RON 4.66 bln (EUR 930 mln) in Q1.
The market, not including the RCA segment, edged up by only 13% YoY to RON 2.3 bln.
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