The no fault insurance market could halve year-on-year

“The auto market is uncertain this year. Apparently, the potential market is significantly lower than last year, maybe not half that level, but around 60-70 percent. We will have a smaller market, and consequently the competition will intensify, and the severity of damages will rise. The average damage will certainly increase,” the Head of the Non-Life Insurance Division of Allianz-Tiriac, Aurel Badea, told Business Standard.

At the end of the first nine months of 2008, Allianz-Tiriac was leader on the Casco insurance market, with a gross premium income of almost €160 million.

Leasing company officials say that, at best, they expect the maintaining of the financing volume in 2009 at last year’s level. “The sales volume dropped dramatically in the past two-three months. Leasing companies are now focusing on preservation, caution and optimization of costs. It is very difficult to estimate how this segment will evolve in 2009,” said the General Manager of Raiffeisen Leasing, Mihaela Mateescu. One of the factors that slows the growth of the Casco segment is the preference of leasing companies for multi-annual contracts.