The Romanian Financial Supervisory Authority (the “FSA”) recently released the Romanian insurance market report covering the first half of 2017. The report concludes that the Romanian insurance market grew in both life and non-life segments. Life insurers recorded gross premiums of 36% more than the same period last year and non-life insurers’ gross premiums increased by only 2%.
Interestingly, the European trend is for life insurance to lead the insurance market, however, in Romania the non-life insurance segment leads the market - with life insurance holding only a 21% share of the written gross premium for the first six month of 2017.
As of 30 June 2017, the overall number of insurance contracts, totalled over 14.5 million, a growth of 11% compared to the same period last year. Of these contracts, 87% cover non-life risks.
Other notable figures mentioned in the report include:
- The insurance market registered a positive net result of about EUR 56.5 million (and 11% increase over last year).
- A significant, 53% share of the non-life insurance segment belongs to the Class A10 risks (mainly made up of mandatory motor third party liability (“MTPL”) insurance). The top three insurers underwriting MTPL insurance hold a share of 71% of the market, up from the 54% held by the top last year. The total number of concluded MTPL contracts was similar to last year - around 2.7 million contracts.
- The non-life reinsurance segment grew by 32% compared to the first half of 2016 with reinsurers receiving about 39% of the written gross premium.
- Overall, considering premium, intermediation grew by 1.05%, with insurance brokers registering a share of about 63% of those premiums. However, intermediation in the life insurance segment decreased compared to the first semester of 2016 as a result of insurers selling more insurances through their own sale force.