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RnRMarketResearch.com adds latest report “The Insurance Industry in Romania, Key Trends and Opportunities to 2017” to its store.
Dallas, Texas (PRWEB) February 20, 2013
The Romanian insurance industry underwent a difficult time during the review period in terms of growth and penetration, and its written premium value fell at a CAGR of -2.2%. The penetration of the non-life insurance segment, which accounted for 75.9% of the total industry written premium in 2012, fell from 1.3% in 2008 to 1% in 2012. This, combined with the European debt crisis, negatively affected the insurance business in Romania. However, it is projected that the industry has potential to grow and its penetration, which is presently under 2%, is expected to reach around 4–5% over the forecast period. In addition, factors such as improving economic fundamentals in Romania and the European Union (EU), rising motor insurance prices, an aging population, rising medical costs and rising corporate spending on insurance are likely to drive the Romanian insurance industry over the forecast period.
Government green light for new regulatory authority
On December 18, 2012, the Romanian government gave formal approval for the establishment of a new Financial Supervisory Authority (FSA). Final details regarding the new authority were expected in January 2013.
Implementation of Solvency II will not have a significant impact
Solvency II is a fundamental reform of capital adequacy requirements and risk management standards. European policymakers are aiming to implement these new regulations throughout all EU member states, along with Norway, Lichtenstein and Iceland. The deadline set for meeting Solvency II requirements is January 2015. This change will result in higher capital requirements, which may subsequently discourage new insurers from entering the Romanian insurance industry. However, the execution of Solvency II is likely to have a little impact on the capital positions of insurance providers in Romania, as the Romanian insurance industry consists of mainly smaller enterprises, which could take effective and quick measures with regard to adopting Solvency II.
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A highly concentrated insurance industry
The Romanian insurance industry is one of the most concentrated in the EU. According to the Insurance Supervisory Commission (CSA) statistics, the top 10 life insurers accounted for a combined segment share of 89.9% in 2011, while the top 10 non-life insurers accounted for over 87.1% of their segment’s written premium in 2011.
Mandatory health insurance from January 2013
The Romanian government introduced the health insurance card in January 2013, which all Romanians aged over 18 years are expected to maintain. The card is expected to make it easier to trace people who are not insured. While medical insurance in Romania has been mandatory since 1998, the introduction of the compulsory health insurance card will further drive demand for medical insurance in Romania.
Growth in travel and tourism
The number of Romanian international air passengers grew at a healthy CAGR of 8.9% during the review period. This positive trend is expected to support the travel insurance category over the forecast period.
Reasons To Buy
Make strategic business decisions using in depth historic and forecast industry data related to the Romanian insurance industry and each segment within it.
Understand the demand-side dynamics, key market trends and growth opportunities within the Romanian insurance industry.
Assess the competitive dynamics in the Romanian insurance industry and identify the growth opportunities and market dynamics within key segments.
Gain insights into key regulations governing the Romanian insurance industry and its impact on companies and the industry’s future.
The Romanian insurance industry registered a decline in terms of gross written premium during the review period due to reduced corporate spending on insurance policies, the closure of numerous businesses, and a slowdown in bank lending activity.
The decline was further aggravated by the turbulent economic conditions in the country and the EU debt crisis.
The Romanian insurance industry remains underdeveloped compared with Western European countries, and the low level of penetration reflects a potential opportunity for global insurers, especially given the countries liberal polices relating to private participation.
The Romanian insurance industry is predominantly composed of multinational insurers, with just a small proportion of revenue generated by domestic companies.
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