The insurance market last year increased in value to 788 million euros (31,943bn ROL) in terms of gross premiums collected, representing a 22% increase in euros compared with 2003, according to data from the Insurance Supervision Commission, which is based on the contributions of insurance companies to the Insured Clients Protection Fund.
This means that the insurance market accounted for 1.3 % of GDP last year and that gross premiums collected per capita reached 36 euros.
The potential of the market is still very high given that gross premiums collected per capita have reached 160 euros in Poland, 250 euros in Hungary and 360 euros in the Czech Republic.
Taking into account a 1 to 1.1 ratio between gross premiums collected and gross premiums underwritten, gross premiums collected came to 850-860 million euros last year.
Thus, if the 20-25% growth pace is maintained this year as expected, then the insurance market will arrive at one billion euros - ten times the value in 1995 and double 2002.
The insurance market has grown by 25% in each of the last ten years, a rare occurrence for a Romanian industry.
"The growth is in line with last year's estimates," said Cristian Fugaciu, general manager of Marsch, an insurance broker. Marsch's business grew by 30% in dollars last year, added Mr Fugaciu.
He says the credit and leasing-related insurance segments were the fastest growing last year.
Allianz-Tiriac says the growth achieved was higher than estimated.
"The 2004/2003 revenue increase is slightly higher than expected. In my opinion, it was helped by the improved performance of the general insurance segment, which probably outran the life insurance segment in terms of growth," said Marius Onofrei, Allianz-Tiriac's press officer.
"The main types of general insurance that sustained this growth were vehicle insurance products (comprehensive and liability), as well as financial risk insurance (for credits and guarantees) and home insurance. These four types of insurance had the fastest growth in 2004 of the entire Allianz-Tiriac portfolio, when compared to 2003," explained Mr Onofrei.
The market could witness similar growth over the next two years, especially since foreign investments are set to increase. The most optimistic players in the industry anticipate a 25% growth, while the most pessimistic forecast 15%.
In terms of general insurance, the main growth factors will be the increase in mortgages and consumer and car credits (since banks require home or comprehensive car insurance or buy default risk insurance), the low proportion contracts for home insurance against earthquakes (only 7-8% of the total number of homes), and the increase in vehicle liability insurance revenues (following alignment with European Union tariffs and the increasing number of vehicles). Private health insurance is also expected to make their appearance, while life insurance, which currently accounts for 25% of the market, will be given a boost by the increase in mortgages and consumer lending (for which banks demand life insurance) and by the increase in the number of companies offering life insurance as employee perks.
sorin.pislaru@zf.ro
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