The insurance companies, authorized and regulated by the Financial Supervisory Authority (ASF), subscribed, in the first six months of this year, gross premiums amounting to 5.6 billion lei, increasing by 3.4% compared to the same period of the previous year.
The increase in the volume of gross written premiums in the first six months of 2020 compared to the same period of the previous year is due exclusively to the positive dynamics recorded in the first quarter of 2020, when their volume reached its highest quarterly value in recent years (2, 95 billion lei). In the second quarter of 2020, the insurance market in Romania was affected as a result of the effects of the COVID-19 pandemic and the measures taken to prevent its spread, the value of gross written premiums standing at 2.67 billion lei, decreasing by 1, 9% compared to the second quarter of 2019, respectively by 9.5% compared to the previous quarter.
"Contrary to European and local macroeconomic developments, the aggregate insurance market manages to grow in the first half of this year. There are positive developments in the health insurance segment (+ 29%) and in the guarantee insurance segment (+ 90%). At the same time, there is an increase in branch subscriptions (FOE), the value of gross written premiums exceeding a total of 500 million lei. As a result, the total subscriptions of the companies authorized in Romania, together with the subscriptions based on the right of establishment, exceed 6.1 billion lei ", said Mr. Valentin Ionescu, director of the Strategy and Financial Stability Department within the Financial Supervision Authority.
The Romanian insurance market remains oriented towards the general insurance activity, which holds a share of 81% of the total gross premiums written by the insurance companies authorized and regulated by the A.S.F. The value of gross written premiums for the general insurance business increased by 5.4% in the first half of 2020 compared to the same period in 2019, while the value of gross written premiums for the life insurance business registered a decrease of 4.2% .
Across the market, the SCR (Solvency Capital Requirements) and MCR (Minimum Capital Requirements) rates were superimposed both on 30 June 2020 and in the years 2016-2019. Compared to the previous year, on 30 June 2020, the market-wide SCR rate increased slightly, while the market-wide MCR rate increased by around 11%. The SCR rate at the market level stood at 1.81 and the MCR rate at 4.38.
As of June 30, 2020, 27 insurance companies, authorized and regulated by the FSA, were active on the insurance market, of which 14 practiced only general insurance (GA) activity, 7 practiced only life insurance (AV) activity and 6 practiced practiced composite activity.
The Romanian insurance market remains characterized by a medium to high degree of concentration. In the first half of 2020, approximately 88% of the total volume of gross written premiums was realized by 10 insurance companies out of the 27 authorized companies.
Gross premiums subscribed AG + AV
Gross written premiums (PBS) related to general insurance (GA) amounted, in January-June of 2020, to the value of approximately 4.5 billion lei, increasing by 5.4% compared to the same period of the previous year , and PBS related to life insurance (AV) amounted to approximately 1.1 billion lei, 4.2% less than in the first half of 2019.
Gross allowances paid (AG + AV)
In the first half of 2020, the insurance companies reported gross indemnities paid - IBP (excluding maturities and partial and total redemptions), cumulated for the two categories of insurance (AG + AV), in the amount of 2,957,428,492 lei. Of this amount, 2,850,159,712 lei represent IBP for general insurance contracts (96%), increasing by 2.7% compared to the first half of 2019. For the life insurance segment, insurers reported IBP amounting to 107,268. 780 lei, by about 2.3% more compared to the similar period of 2019.
Damage rate
The combined damage rate, calculated on cumulative data for all classes of non-life insurance, was 99.2% in the first six months of this year, down from the same period last year, when it stood at 109.37 %.
RCA Square
The total value of insurance premiums written for MTPL insurance in the first six months of 2020 reached the value of approximately 1.96 billion lei, the rest up to the total of class A10 (2.066 billion lei) representing the carrier's insurance for goods transported as carriers and MTPL insurance taken out in the territory of other EU Member States under the right to freedom to provide services. Compared to the first half of the previous year, the value of gross written premiums increased by about 2%.
As of June 30, 2020, the largest shares were held by policies with a validity of 6 months (approximately 36.38%) and 12 months (31.45%), respectively. There is an upward trend for insurance policies with a validity of one month. Overall, the average annualized MTPL increased slightly by about 1% in the first half of this year compared to the same half of the previous year, the value of 622 lei. The average RCA damage paid for bodily injuries in the first six months of 2020 increased compared to the first semester of the previous year by about 4%, and the one for material damages also increased by about 4%. from 2020, the MTPL insurers, authorized and supervised by ASF, concluded a number of 108,455 direct settlement clauses, the gross written premiums related to them being of 10,957,673 lei.
Home insurance
On June 30, 2020, the number of contracts in force related to compulsory home insurance increased by about 2%, and gross written premiums by about 4%. At the same time, the gross allowances paid decreased by 19%.
Subscriptions related to optional home insurance registered, during the first half of 2020, a slight decrease, of approximately 0.14%, compared to the first half of the previous year. Gross indemnities paid decreased by about 11%, and the number of new contracts concluded during the reporting period increased by 1%.
Health insurance
At the end of the first semester of this year, the health insurances accumulated gross written premiums amounting to approximately 264 million lei, increasing by approximately 29% compared to the same period of 2019:
- the gross written premiums related to the general insurances were in the amount of 164 million lei, increasing by approximately 28% and represented about 62% of the total PBS for the health insurance activity;
- the gross written premiums related to life insurance reached the value of 100 million lei, increasing by about 30%.
Gross premiums subscribed on the territory of other states
Of the total gross premiums written by insurance companies authorized and regulated by the A.S.F. In the first half of 2020, the gross premiums written on the territory of other states registered a volume of about 183 million lei, increasing by about 61% compared to the similar period of the previous year (114 million lei).
Branches
As of June 30, 2020, 13 branches based on the right of establishment (FOE) were active on the insurance market, of which 10 practiced general insurance activity and 3 practiced life insurance activity. The branches accumulated, at the end of the month. June 2020, gross written premiums amounting to about 505 million lei, increasing by approximately 11% compared to the same period of the previous year. At the same time, the branches reported gross indemnities paid, cumulated for the two categories of insurance, in the amount of about 155 million lei.
Insurance brokers
As of June 30, 2020, a number of 294 authorized brokers were registered in the records of the Financial Supervisory Authority, of which 283 active companies, 10 companies with suspended activity and one company with temporarily prohibited activity. , on 30.06.2020, an increase of 9.37% of the value of intermediated premiums for non-life insurance and life insurance was found, compared to the same period of 2019, from 3,476,784,002 lei to 3,802,619,958 lei. In the first half of 2020, insurance and / or reinsurance brokers brokered 67.59% of the total volume of gross premiums written by insurers for the two categories of insurance, increasing compared to the similar period of 2019 (63.92% ).
The revenues from the intermediation activity obtained by the insurance brokers, in the first semester of 2020, increased by 9.14% compared to the same period of 2019, from 612,943,868 lei to 669,011,659 lei.
