The crisis hits the insurance companies

The Romanian insurance market will record a decrease this year. The insurers need a cash flow of 250-300 million euros in 2009 in order to maintain their solvency margin.

Last year, the companies on the Romanian insurance market have recorded gross premiums of 8.78 billion lei, 22.4% more than in 2007, while the claims on the automotive segment increased by 47%. "The insurers' losses from the subscriptions will reach approximately 100 million euros for 2008 compared to 73 millions in 2007", Cristian Constantinescu, president of the National Union of Insurance Companies of Romania (UNSAR), said yesterday. Thus, the insurance companies require a capital contribution of 250-300 million euros this year to maintain their solvency margins. The Chairman of the Insurance Supervision Commission (CSA), Angela Toncescu, provided that there was no company with solvency problems.

The economic crisis has attacked the insurers' business. Due to the credit blockage, the sale of various insurance services related to the banking products stopped. The decrease recorded in the car sales was directly reflected in the number of new customers for the car insurance policies. In addition, the daily concerns do not "stimulate" the renewals for the CASCO policies, and many holders of life insurance policies hurried to redeem their policies. "This year, the insurance market will not grow. Given that the car sales have fallen and the fact that 50% of those who are forced to sign a car insurance policy such as those who lease cars, do not renew their insurance polices after they pay their lease duties", Constantinescu said.