Mandatory car insurance premium, up 26% in Romania

The average mandatory car insurance (RCA) premium amounted to RON 747 (EUR 168) in the first quarter of the year, up 26.2% compared to the same period last year. The average premium increased by 0.9% compared to the last quarter of 2015, according to the Financial Supervisory Authority (ASF). The drop in the combined loss ratio, including both the loss ratio plus expenses ratio, to 101.66%, compared to 127.5% in the last two years, shows that the RCA segment is regaining its balance, according to ASF. The insurers’ revenues now cover almost entirely the damages and expenses. Representatives of the Confederation of Licensed Transport Operators and Haulers from Romania (COTAR) have demanded the Government to freeze the RCA tariffs at the level from June last year. They have been complaining that the RCA premiums for transporters have increased a lot in the past year. If the Government ignores their request, the confederation warns about organizing a protest meeting in mid-September. COTAR has recently signed an agreement with former President Traian Basescu Popular Movement Party (PMP) and may get two seats in the Parliament at the next parliamentary elections. editor@romania-insider.com