This deficit amounts to €97 billion, more than double its 2006 level, said Cornelia Coman, General Manager of ING Asigurari de Viata life insurance company. This value of the financial protection deficit indicates the potential of the life insurance market.
ING calculations, based on a RON 16,000 annual net income for each employee, prove that the protection deficit is RON 48,000 for every active person.
“The need for protection in Romania is very high, considering the aging population and an increasing indebtedness degree. Along with savings and investments, financial protection must be taken into consideration,” Coman added.
The Romanian life insurance market has the lowest penetration degree in gross domestic product (GDP), of 0.4-0.5 percent, compared to other countries in the region. The domestic insurance market registered subscribed gross premiums worth €1.83 billion in the first three quarters of 2008, up 13.56 percent year-on-year.
