Eureko is downbeat: life insurance to stall for another two years
The life insurance market will stagnate this year and in 2011
and is to register slight increases of 2% and 4%, respectively, in
2012 and 2013, according to the estimates of Dutch group Eureko,
with operations in the field of life and health insurance and
private pensions domestically.
"We believe the market will stall through 2011 as under the current
circumstances, when incomes are falling, people are reluctant to
buy financial products. Moreover, insurance policies are still seen
as luxury products," stated Shaun Russel, commercial manager of
Eureko. He believes the insurance market will not return to
two-digit annual increases before 2017.
Gross underwritten premiums on life insurance segment dropped by
15% in the first half compared with a year ago, to 15.2m RON. On
the health insurance segment, where Eureko leads with a share of
around 44%, the value of gross underwritten premiums in the first
half went down by 8%, to 4.5m RON.
The company's officials expect turnover decline on the two segments
to slow down to 7% on the entire 2010, as the transfer of KD Life
portfolio to Eureko will be finalised late this month, but also
because of the rising number of sold unit-linked policies.