The very tight competition among insurance companies on thesegment of property insurance for corporate entities has led to a10-20% price decline for these policies over the last two years,according to Karina Rosu, general manager of Aon, one of thelargest insurance brokers on the Romanian market, which worksmainly with corporate clients.
"The property insurance market is very competitive now, muchmore competitive than some of the Western European markets.Competition among insurers is tight on this segment because this isa profitable business line, there have not been many big claims, sothey can afford to offer low prices and low deductibles (adeductible is the share of the claim payable by the insured partyif the insured risk occurs). There has been a 10-20% decline infees over the last two years, especially for very high risks, withinsured sums amounting to tens or hundreds of millions of euros,"Rosu explains.
Aon (formerly KaRo), the local subsidiary of the Americaninsurance broker by the same name, recorded a 25% increase ininsurance contracts brokered, with the value of brokered premiumsamounting to 74 million RON (17.7 million euros).
"The fact that 2008 was a good year showed in the first half ofthis year, but in the second half, we expect our increase to bemore moderate, in line with activity in the economy," says Aon'sgeneral manager. The company's revenues derived from commissionsclimbed by 15% in the first six months of the year, to 6.3 millionRON (1.5 million euros).
"The structure of our portfolio remained similar to last year's.Motor insurance accounts for a rather significant share of ourportfolio because this is a characteristic of the market. We grewon the property segment because we have been involved in a fewlarge infrastructure projects. I think this will be the maindevelopment area in the future, because there are projects thathave already been started or are at a tender stage, and insurancebrokers are needed in such cases, considering that we are talkingabout complex policies."
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