Romanian insurance brokers thrive amid bankruptcy of City Insurance
The revenues of the insurance brokers selling third-party liability auto insurance (RCA) increased by 41.6% in 2021, to RON 792 mln, according to data provided by the financial markets regulator ASF quoted by Profit.ro.
The revenues generated by the voluntary car insurance contracts (CASCO) rose by only 11% to RON 350 mln.
At the end of September, before the bankruptcy of the leading player City Insurance, the annual growth rate for the year-to-date period January-September for the revenues generated by RCA contracts was reported at only 22.48%.
But something happened, the price of the mandatory auto insurance surged amid City Insurance's bankruptcy towards the end of the year, and so have the revenues of the brokers, during the last quarter of 2021.
In the meantime, ASF drafted new regulations to cap the prices of third party liability auto insurance (RCA) and also to cap at 5% the fee charged by the insurance distribution companies.
The draft government decision on this topic, envisaging capping the RCA prices and the fees charged by the insurance brokers for six months, is currently being reviewed by the competition body, minister of finance Adrian Caciu announced on March 23.