Home »
Romania Insurance Report Q3 2011

Romania Insurance Report Q3 2011

Double click on above image to view full picture

Email to a Colleague - Print - Fax Order

Additional Information

Price	$530.00
Publisher	Business Monitor International
Date of Report	Jan 7, 2011

Add to Wishlist | Add to Compare

Qty:

-OR-

Quick Overview

?? The insurance sector is showing signs of growth, with the life and non-life segments increasing this year.
?? Published results in relation to calendar 2010 have generally been surprisingly good. ?? Romania’s insurance sector can be described as being thoroughly dominated by subsidiaries of regional and global multinationals whose optimism for the future exceeds a fairly challenging present.
Romania’s insurance sector appears to be showing the first signs of growth in 2011, after a devastating fall in 2009. The results released by the major insurers in February-March 2011, in relation to 2010, have indicated that premiums remained resilient in the life and the non-life segments. Some companies have suffered from diminishing premiums or profitability, but the problems have by no means been uniform.
BMI forecasts that GDP will grow by 2-3% in 2011 and 2012 and we believe a recovery is underway. However, the extent to which this translates into significant new business for the country’s life insurers remains to be seen. Despite a competitive landscape that is crowded with local subsidiaries of well capitalised regional and global giants (notably ING PPF, Generali, Vienna Insurance Group and AXA), the evidence suggests that Romanian households have yet to fully appreciate the benefits of life insurance as a vehicle for long-term savings. Generali, for instance, as recently as Q211 highlighted the tendency for some households to regard their life insurance policies as a source of ready cash during the hard times that followed the global financial crisis, which reached a critical stage in late 2008.
Nevertheless, Generali and ING are among those developing innovative new products, while Vienna Insurance Group’s Asirom subsidiary is aiming for premium growth of over 20% in 2011.
In the non-life segment there are also signs that some Romanians see insurance premiums as a cost to be avoided if at all possible. Over the last two years, there has been downwards movement in voluntary motor insurance premiums (CASCO) as policies have not been renewed. Several of the major non-life companies, partly because of this and partly because of deliberate strategies, have sought to reduce the importance of motor lines in their overall portfolios.

Table of Contents

Executive Summary ........................................................................................................................................ 5
Table: Total Premiums, 2008-2015 ...................................................................................................................................................................... 5
Key Insights And Key Risks ........................................................................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 7
Romania Insurance Industry SWOT ...................................................................................................................................................................... 7
Romania Political SWOT ...................................................................................................................................................................................... 7
Romania Economic SWOT .................................................................................................................................................................................... 8
Romania Business Environment SWOT ................................................................................................................................................................ 8
Life .................................................................................................................................................................... 9
Central And Eastern Europe Life Sector Overview .................................................................................................................................................... 9
Table: Central And Eastern Europe’s Life Premiums, 2008-2015 (US$mn) .......................................................................................................... 9
Romania Life Sector Update .................................................................................................................................................................................... 11
Table: Life Premiums Breakdown By Line, 2009-2010 (RONmn) ....................................................................................................................... 11
Life Industry Forecast Scenario ............................................................................................................................................................................... 12
Table: Life Premiums, 2008-2015 ....................................................................................................................................................................... 12
Population .......................................................................................................................................................................................................... 13
Table: Insurance Sector Key Drivers – Demographics, 2008-2015 ..................................................................................................................... 13
Non-Life .......................................................................................................................................................... 15
Central And Eastern Europe Non-Life Sector Overview .......................................................................................................................................... 15
Table: Central And Eastern Europe’s Non-Life Premiums, 2008-2015 (US$mn) ................................................................................................ 15
Romania Non-Life Sector Update ............................................................................................................................................................................ 17
Table: Non-Life Premiums Breakdown By Line, 2009-2010 (RONmn) ................................................................................................................ 17
Non-Life Industry Forecast Scenario ....................................................................................................................................................................... 18
Table: Total Non-Life Premiums, 2008-2015 ..................................................................................................................................................... 18
Macroeconomic Outlook ..................................................................................................................................................................................... 19
Table: Romania GDP By Expenditure, 2006-2015 ............................................................................................................................................. 22
Political Stability Outlook ................................................................................................................................................................................... 23
Table: Europe Security Risk Ratings .................................................................................................................................................................. 23
Healthcare .......................................................................................................................................................................................................... 26
Epidemiology ...................................................................................................................................................................................................... 27
Table: Insurance Sector Key Drivers – Disability-Adjusted Life Years, 2008-2015 ............................................................................................ 28
Motor .................................................................................................................................................................................................................. 29
Table: Insurance Sector Key Drivers – Autos 2008-2015 ................................................................................................................................... 30
Tourism ............................................................................................................................................................................................................... 30
Table: Insurance Sector Key Drivers – Tourism, 2008-2015 ............................................................................................................................... 31
Insurance Risk/Rewards Ratings ................................................................................................................. 32
Table: Romania’s Insurance Risk/Reward Ratings ............................................................................................................................................. 32
Competitive Landscape ................................................................................................................................ 34
Table: Life Market Share, 2010 .......................................................................................................................................................................... 36
Table: Non-Life Market Share, 2010 .................................................................................................................................................................. 37
Company Profiles .......................................................................................................................................... 38
Local Company Profiles .......................................................................................................................................................................................... 38
ARDAF ............................................................................................................................................................................................................... 38
Asiban ................................................................................................................................................................................................................. 38
Euroins ............................................................................................................................................................................................................... 39
Regional Company Profiles ..................................................................................................................................................................................... 40
AEGON ............................................................................................................................................................................................................... 40
Allianz ................................................................................................................................................................................................................. 41
Aviva ................................................................................................................................................................................................................... 43
AXA ..................................................................................................................................................................................................................... 44
BNP Paribas Cardif ............................................................................................................................................................................................ 45
ERGO ................................................................................................................................................................................................................. 46
Eureko ................................................................................................................................................................................................................ 48
Generali .............................................................................................................................................................................................................. 50
GRAWE .............................................................................................................................................................................................................. 52
Groupama ........................................................................................................................................................................................................... 53
HDI-Gerling/Talanx ........................................................................................................................................................................................... 54
ING ..................................................................................................................................................................................................................... 55
KBC Group ......................................................................................................................................................................................................... 56
MetLife ALICO ................................................................................................................................................................................................... 57
Prudential Financial ........................................................................................................................................................................................... 59
QBE .................................................................................................................................................................................................................... 60
RSA ..................................................................................................................................................................................................................... 61
UNIQA ................................................................................................................................................................................................................ 62
Vienna Insurance Group ..................................................................................................................................................................................... 63
Zurich ................................................................................................................................................................................................................. 65
BMI Methodology .......................................................................................................................................... 66
Insurance Risk/Reward Ratings ............................................................................................................................................................................... 68
Table: Insurance Risk/Reward Indicators And Rationale ................................................................................................................................... 69
Table: Weighting Of Indicators .......................................................................................................................................................................... 70