Angela TONCESCU: The insurance market, affected by the crisis
"The crisis has also affected the insurance market, mainly at the level of two major distribution channels used by companies: the fall of leasing activity in 2009 and loans granted by banks. These, combined with rising unemployment, have led to the fact that gross written premiums for the year 2009 remained at the level of the previous year, of RON 8.8 billion", said Angela TONCESCU, ISC President, in the opening of the National Motor Insurance Conference.
On the general insurance segment, the market registered a growth of 2%, and motor insurance continued to represent in 2009 the most important share in the portfolios of companies. Thus, Motor Hull insurance totaled RON 3.3 billion, 6% more compared to 2008, and the MTPL class cumulated 40% of the motor segment, with gross written premiums of RON 2.1 billion, with more than 23% over the 2008 level, according to ISC data.
Claims in 2009 have recorded a substantial increase. Thus, on the Motor Hull segment, there have been paid indemnizations of RON 2.9 billion, 17% more compared to 2008, and on the MTPL one, the claims evolution was of 27%, to RON 1.5 billion.
"I want to specify that motor third party liability insurance is mandatory in all countries, it is an insurance of protection for third parties and it is not a tax and should not be perceived so and should be paid. In fact, in 2006, before joining the EU, an essential condition was the degree of coverage in MTPL insurance. In addition, both companies and the police have made great efforts to ensure that this degree of coverage reaches a level of at least 85% of all owners of vehicles", added the ISC President.
"Also, the conflict between insurers, repair shops and ISC does not exist. It is between repair shops and insurance companies, as between them there is a commercial relationship. Therefore, complaints should be resolved at this level and, if irregularities may occur, the Commission may intervene, which has the supervisory role for companies, in order to protect the insured", continued Angela TONCESCU.
"Regarding the MTPL tarrifs, they are liberalized across all the European Union and established by companies based on actuarial calculations. In the reports received from companies, I noticed an increase of only 20% of tarrifs this year and I would like to mention that the average value of the MTPL policy in Romania is EUR 80, while even in Bulgaria it is EUR 150, and in the EU countries it may reach even EUR 500", according to the President of the supervisory authority.
The reserves of insurance companies for unauthorized claims increased by 52% in 2009, and this is a positive thing, so that all companies have sufficient reserves to pay their obligations assumed by these contracts, according to ISC.
Author: Oleg DORONCEANU
on 04.03.2010
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