Insurance brokerage market up to €600 mln in 2008

This value represents some 22-23 percent of total gross premiums to be subscribed this year, according to a statement to Business Standard by UNISCAR President, Bogdan Andriescu. A member of the Union’s board, Gheorghe Grad, said that “brokers could mediate some €600 million in premiums, of which fees make up 12-13 percent.” Grad added that the total insurance market could amount to €2.7 billion this year, 35 percent higher year-on-year.

However, UNISCAR Executive Director, Constantin Nastase, is less optimistic about the brokered insurance market. “I feel that a 20-21 percent ratio is closer to reality. I do not think that the volume of brokered premiums will exceed €500-500 million,” he told Business Standard. In Nastase’s view, the insurance market will register 20 percent growth in 2008, with some €2.5 bln in gross premiums.

In 2007, the brokered insurance market was worth some €400 mln, while income from fees could amount to €60 mln, Grad said. For 2008, he estimates more than 100 percent growth for home insurance and a 40 percent increase in life insurance. Health insurance is expected to register slower growth, of some 30 percent, while car insurances is not likely to exceed 15-20 percent, added Grad.