Net losses amount to 3.5 percent of total gross premiums subscribed in 2007, worth €2.15 billion. These losses can be reduced by severe control of damages paid, especially in the case of car insurance, where the highest ratio of damages is registered, according to the President of Romania’s National Union of Insurance and Reinsurance Companies, Cristian Constantinescu. He added that increasing premiums is not a solution to diminish losses, as premiums already exceed client supportability limits.
The local insurance market totaled gross subscribed premiums worth RON 2.3 billion (€645.2 million) in the first quarter of 2008, some 16.8 percent higher year-on-year, while compensations paid amounted to some €271 mln, 22.8 percent higher than in January-March 2007, Toncescu added.
Gross premiums subscribed in Q1 2008 made up one third of premiums subscribed in 2007, proving that the insurance market is experiencing significant growth, she said.
For this year, Toncescu estimates 25-26 percent growth on this market, especially for car and life insurance.
