Romania Insurance Market Intelligence: 2011 Edition
Deregulation of the Romanian insurance sector in 1990 and the establishment of Insurance Supervisory Commission in 2000 resulted in the entry of large foreign players in the country as well as growth of the overall insurance sector. The Romanian insurance market is clearly dominated by non-life insurance business, with life insurance generating only a small portion of the total premium volume. The year 2009 proved highly challenging for the Romanian insurance sector. Both life and non-life insurance segment were affected by a steep decline in the credit activity and consumer spending during the year.
The life insurance segment generates a significant portion of its premiums from life assurance products and annuities, whereas the non-life business is dominated by MTPL and CASCO segments. ING remains the undisputed market leader in the life segment whereas Allianz Tiriac dominates the general insurance market.
Romania's GDP fell in 2009 mainly because of poor performance of the construction and services sectors; however, the Government of Romania projects the national economy to resume growth in 2011. The law enforcing the issuance of mandatory home insurance against natural disasters is expected to increase the demand for such policies. It is expected that the Romanian insurance sector will grow at a slower pace over the years 2010-2013 due to negative impact of financial crisis.
The life insurance segment generates a significant portion of its premiums from life assurance products and annuities, whereas the non-life business is dominated by MTPL and CASCO segments. ING remains the undisputed market leader in the life segment whereas Allianz Tiriac dominates the general insurance market.
Romania's GDP fell in 2009 mainly because of poor performance of the construction and services sectors; however, the Government of Romania projects the national economy to resume growth in 2011. The law enforcing the issuance of mandatory home insurance against natural disasters is expected to increase the demand for such policies. It is expected that the Romanian insurance sector will grow at a slower pace over the years 2010-2013 due to negative impact of financial crisis.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Changes in the legislation after 1990 established many insurance companies
1.1.2 Supervised by Comisia de Supraveghere a Asigurarilor (CSA)
1.1.3 Pension market follows pillar system
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Decline in credit activity and consumer spending due to economic slowdown
1.2.1.2 Declines in both non-life and life segments in 2009
1.2.2 Market Segments
1.2.2.1 Non-life insurance segment dominating insurance industry
1.2.2.2 Except MTPL, all non-life segments recorded decline in premiums
1.2.2.3 Shift towards traditional life insurance policies
1.2.3 Market Density & Penetration
1.2.3.1 Life insurance market least developed in Central and Eastern Europe
1.2.3.2 Stable insurance penetration rates
1.2.4 Market Share
1.2.4.1 Exit of insurers in various segments due to underperformance
1.2.4.2 Entry of several new insurance companies in 2009
1.2.4.3 Astra as market leader in MTPL
1.2.4.4 ING dominated life insurance segment
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Insurers Set Up Institution to Issue Mandatory Home Insurance
Rise in Prices for Compulsory Motor Vehicle Insurance
Introduction of Bonus-Malus System for MTPL/RCA Insurance
Delta Insurance Entered Voluntary Liquidation
Introduction of Mandatory Home Insurance
Signal Iduna Signed Partnership Deal With OVB
Allianz Tiriac Launched New Health Insurance Product
Insurers Pay Claims Worth EUR 10 Million for Flooding
2.2 Market Drivers
Expanding Economy
Growing Household Income
Motor Insurance Market
Demand for Home Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Positive economic outlook will drive demand for insurance products
4.2 Low insurance penetration offers huge opportunity for insurers
4.3 Demand for private health insurance likely to rise
1.1 Industry Structure
1.1.1 Changes in the legislation after 1990 established many insurance companies
1.1.2 Supervised by Comisia de Supraveghere a Asigurarilor (CSA)
1.1.3 Pension market follows pillar system
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Decline in credit activity and consumer spending due to economic slowdown
1.2.1.2 Declines in both non-life and life segments in 2009
1.2.2 Market Segments
1.2.2.1 Non-life insurance segment dominating insurance industry
1.2.2.2 Except MTPL, all non-life segments recorded decline in premiums
1.2.2.3 Shift towards traditional life insurance policies
1.2.3 Market Density & Penetration
1.2.3.1 Life insurance market least developed in Central and Eastern Europe
1.2.3.2 Stable insurance penetration rates
1.2.4 Market Share
1.2.4.1 Exit of insurers in various segments due to underperformance
1.2.4.2 Entry of several new insurance companies in 2009
1.2.4.3 Astra as market leader in MTPL
1.2.4.4 ING dominated life insurance segment
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Insurers Set Up Institution to Issue Mandatory Home Insurance
Rise in Prices for Compulsory Motor Vehicle Insurance
Introduction of Bonus-Malus System for MTPL/RCA Insurance
Delta Insurance Entered Voluntary Liquidation
Introduction of Mandatory Home Insurance
Signal Iduna Signed Partnership Deal With OVB
Allianz Tiriac Launched New Health Insurance Product
Insurers Pay Claims Worth EUR 10 Million for Flooding
2.2 Market Drivers
Expanding Economy
Growing Household Income
Motor Insurance Market
Demand for Home Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Positive economic outlook will drive demand for insurance products
4.2 Low insurance penetration offers huge opportunity for insurers
4.3 Demand for private health insurance likely to rise
LIST OF CHARTS:
Annual Premium – Romania Insurance Industry: 2002-2009
Romania: Gross Direct Premium Q110 Vs. Q109
Romania Insurance Premium Share (%) by Segment – 2009
Romania Insurance premium by segment – 2002-2009
Romania Life Insurance Premium Share (%) by Segment – 2009
RomaniaNon-Life Insurance Premium Share (%) by Segment – 2009
Romania Insurance Density (US$): 2002 – 2009
Romania Insurance Penetration: 2002 – 2009
Romania: Major Non-Life Insurer’s Market Share: (2009)
Romania: Major Life Insurer’s Market Share: (2009)
Romania: Major MTPL Insurer’s Market Share: (2009)
GDP Growth of Romania: 2002 – 2009
Total Monthly Income per Households (2005 - 2009)
Total Monthly Consumption Expenditure per Household (2005 - 2009)
Motor Sales in Romania ('000 Units): 2002 - 2009
Romania Dwellings Stock Growth: 2003-2009
Forecast: Romania Insurance Industry: 2009A - 2013F
Forecast: Romania Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – Romania Insurance Industry: 2002-2009
Romania: Gross Direct Premium Q110 Vs. Q109
Romania Insurance Premium Share (%) by Segment – 2009
Romania Insurance premium by segment – 2002-2009
Romania Life Insurance Premium Share (%) by Segment – 2009
RomaniaNon-Life Insurance Premium Share (%) by Segment – 2009
Romania Insurance Density (US$): 2002 – 2009
Romania Insurance Penetration: 2002 – 2009
Romania: Major Non-Life Insurer’s Market Share: (2009)
Romania: Major Life Insurer’s Market Share: (2009)
Romania: Major MTPL Insurer’s Market Share: (2009)
GDP Growth of Romania: 2002 – 2009
Total Monthly Income per Households (2005 - 2009)
Total Monthly Consumption Expenditure per Household (2005 - 2009)
Motor Sales in Romania ('000 Units): 2002 - 2009
Romania Dwellings Stock Growth: 2003-2009
Forecast: Romania Insurance Industry: 2009A - 2013F
Forecast: Romania Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Finished Dwellings by Area (In thousand) 2002-2009
Key Macroeconomic Indicators: (2009 – 2014F)
Finished Dwellings by Area (In thousand) 2002-2009
Key Macroeconomic Indicators: (2009 – 2014F)
