Marsh expects stagnation after 44% growth last year

Marsh, the Romanian subsidiary of the largest insurance broker worldwide, expects stagnation in the volume of policies brokered and in commissions collected, due to many companies reducing their activity. Marsh is the largest independent broker on the Romanian market, and works only with corporate clients. "I predict we will preserve last year's level, due to the crisis. Insurance premiums are going down due to insurers becoming more flexible and being willing to negotiate discounts. Additionally, some companies have closed down, while others have reduced their operations or given up part of their insurance policies," Cristian Fugaciu, general manager of Marsh Romania, told ZF. In 2008 Marsh brokered gross underwritten premiums (insurance policies) worth 226.2 million RON (61.5 million RON), up 44% against the previous year, according to audited results. The insurance market saw a 24% rise last year, exceeding 2.4 billion euros. Marsh's revenues amounted to 27.6 million RON (7.5 million euros), 29% above the 2007 level. According to company data, Marsh is leader of the auto liability insurance brokerage market (with a 40% market share), fire and hazard insurance (18%) and property insurance (15%). "I think we will see the biggest decline on auto insurance. There will be no spectacular occurrence on the property segment, I expect a decline, but not a very significant one. On the other hand, there will be a definite rise for commercial credit insurance (purchased by companies to cover risk of non-payment by business partners), and for liability insurance," Fugaciu added.