Astra: Insurance market decline could slow down by yearend
Insurers are likely to partially recoup in the second half of
the year the revenues they lost in the first quarter, when overall
turnover dropped by 150 million lei amid the tightening competition
on the auto liability segment, believes Radu Mustăţea, chairman of
Astra, the biggest company on the insurance market.
"The insurance market could recover part of the decline by yearend
as the economy is picking up and, moreover, the impact of auto
liability policy prices is largely felt in the first quarter, as a
big part of car owners renew their policy in this period," Mustăţea
said.
He puts the auto liability insurance tariff cut during the winter
campaign at 20-25%, with 1.8 million drivers having renewed their
policies, which has seriously reduced the volume of gross
underwritten premiums, considering this segment accounts for one
third of the general insurance market.
Gross underwritten premiums fell by 6.6% in January-March 2011 from
a year ago, to RON2.1 billion (around EUR 500 million). Auto
liability insurance policy revenues shrank by 18% during the same
period to RON668 million (EUR158 million).
While car policy revenues plunged in the first quarter, insurers
managed to boost their revenues on other business lines, such as
fire or natural disaster insurance and life insurance policies.