“As of today, we feel we have another difficult year ahead of us. Even if Romania’s economy bounces back, our market will take some time before people return to their behavior prior to the crisis, at the level of both consumption and savings,” Coman said.
According to the official, the gap between the rebound of the economy and that of the insurance industry will be of five-six months. “Regaining the trust of consumers that their future is more secure is the factor that will lead to the relaunch of [the] life insurance [segment],” the manager added.
ING Life Insurance’s General Manager said that the prices of products are registering a downward trend, due to pressure from consumers and competition. “Today’s prices on the Romanian market reflect the industry’s development stage. In terms of share of gross subscribed premiums of the total market Hungary and the Czech Republic, for example, are doing better than we are, because these are industries supported by fiscal incentives. The insurance premiums paid by Czechs are deductible up to an annual €400, while in Hungary, 20 percent of the insurance premium is deductible from income tax,” Coman added.
Companies operating on the local life insurance market are lobbying intensely for the introduction of some fiscal incentives, which could boost this segment.
