Romania's auto liability insurance segment can generate systemic risks

The share of mandatory auto liability insurance – RCA - within total premiums underwritten on the general insurance segment was close to 38%, in Romania, in 2013. This can generate systemic risks if the claim rate gets out of control, according to an analysis made by the association of the Romanian insurers (UNSAR). In 2013, 7 in 100 cars in Romania generated damages covered by the RCA, compared to 5 in Poland, 4.4 in Croatia, or 3 in Hungary. The combined damage rate on the RCA segment in Romania was among the highest in Europe, at 130.8%. A rate of over 100% means that insurers lose money on these products. The damages paid by insurers for injuries and deaths represented almost 20% of the total RCA damages, in 2013. editor@romania-insider.com