Romania: 24% y-o-y GWP growth in 2021; housing, health and suretyship insurance expected to be the market drivers in 2022
According to preliminary data provided by the Financial Supervisory Authority (ASF), the Romanian insurance market saw, in 2021, a 24% y-o-y GWP growth, to approx. EUR 2.86 billion. Non-life insurance line account for about 74% of the total market GWP.
Thus, non-life GWP reached about EUR 2.32 billion, 25.4% up y-o-y. Motor insurance lines provided for 74% of the non-life GWP (51% MTPL, 23% Motor Hull), while all other non-motor insurance lines accounted together for just about a quarter (26%) of the non-life portfolio.
Life insurance GWP rose by 17.6% y-o-y, to ~EUR 0.52 billion.
Speaking at a professional gathering in Bucharest, Cristian ROSU, Vice-President ASF in charge with the insurance market's supervision emphasized: "The most important challenge of 2021 for the local insurance market was the absorption of the CITY Insurance bankruptcy and I am happy to say that the market reacted very rational, the entire process went well until now and we don't expect further shocks." He also added that diversifying the market portfolio remains a top priority as the current dominance of the motor insurance lines makes it difficult managing risks and providing for affordable insurance prices while still maintaining the market's financial stability.
Housing insurance, health insurance, suretyship insurance might be the growth drivers in 2022, most insurers attending the event believe. Other features repeatedly mentioned as an absolute necessity is increasing the financial literacy of the Romanian citizens and improving cooperation among all stakeholders - insurers, public authorities, intermediaries etc. -, for the better enforcement of the laws (as the mandatory catastrophe insurance Law) and improving the road accidents statistics.
Author: Daniela GHETU
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