“We are having some problems on the brokerage market. One of these is the decision by the Insurance Supervisory Commission to limit the brokerage fee to 15 percent for RCA [compulsory motor third party liability insurance]. Brokered RCA premiums yielded 60 percent of net sales for brokers. In my opinion, small companies, depending on a certain sales structure, will be the first to be hit, because they will no longer be able to pay the agents,” said Grad.
Karina Rosu, Chief Executive Officer (CEO) of AON Romania broker, said that it is possible for some brokers with exclusive exposure on RCA to disappear. According to Rosu, most affected business lines, for both brokers and insurance companies, will be auto insurance and employee benefit packages.
The General Manager of the ASTOP broker, Cerasela Nerghes, said that the number of brokers to exit the market this year will be significant, but the market will be hit in 2010, once the online issuance of RCA insurance becomes mandatory.
