The general insurance segment is likely to shrink by as much as15% this year on the falling premiums cashed in from car policies,after a single digit decline in 2010, which may prove to be adeadly test for several players on this market, insurance execsbelieve.
"In 2011 we should see some insurance companies disappear and notjust companies that do not matter in terms of market share. If wedo not see bankruptcies, we will at least see companies placedunder special supervision," stated Cristian Constantinescu,chairman of the National Union of Romania's Insurers (UNSAR),during a workshop organised by Media XPRIMM.
He expects the market to go down by 5% in 2011 at best, amid the20% lower car policy tariffs.
In a bid to retain their clients or gain market share, insurershave slashed the tariffs of RCA policies, a segment that accountsfor over one third of the general insurance market. The insurancemarket 70-80% depends on car policies, so that insurers are nowwaiting for lending to be resumed.
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