The shareholders of insurance companies operated capitalinflows worth 300-350 million euros last year as support for theirbusiness, considering the stakes on this market are huge, given thehigh growth potential expected after the economy rebounds.
The share capital of insurers is therefore close to 1 billioneuros, accounting for almost one third of the total share capitalof the banking system, 3.3 billion euros (November 2009). Insurancecompanies have been criticised lately, for the constant rise in theprice of mandatory auto liability insurance, the policies thatgenerate most of the business, as well as the highest losses alongwith comprehensive auto insurance. Auto liability insurance rateswill continue to go up, though, because the shareholders ofinsurers rely on them to recoup the hundreds of millions of eurosinvested.
"Insurance is a market with a lot of potential, there's no wayyou cannot be there in a country with 22 million people. Insurerswant to be on the market and have stable companies, which is whythey invest so much," says Bogdan Andriescu, chairman of UNSICAR(professional association of insurance brokers).
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