Quo Vadis 2022: Private health insurance as a solution for health financing
Bucharest, February 11, 2022 – Establishing the principles of a "roadmap" aimed at increasing access to private health insurance for as many Romanians as possible was the innovative outcome of discussions held during the conference “Quo Vadis 2022! - Private Health Insurance as a Solution for Health Financing,” organized online by the Institute of Financial Studies in partnership with DC Media Group.
The event brought together high-level representatives from the Financial Supervisory Authority, the Ministry of Health, the Institute of Financial Studies, the Romanian Parliament, the Court of Accounts, professional organizations in the insurance sector, and managers from major companies in healthcare and insurance.
Nicu Marcu, President of the Financial Supervisory Authority, opened the conference by providing a clear picture of the insurance market in Romania. He pointed out that social health insurance is still in its early stages and requires supportive measures. Marcu praised the ISF's efforts in financial education, deemed essential for developing the insurance market, and encouraged specialists to engage in research.
“Compared to other countries, Romania is at an early stage regarding the development of social health insurance. In 2019, the total premiums for private health insurance were 380 million lei, rising to 500 million lei by 2021. While there's growth, it remains a small percentage of total health insurance. The percentage of insurance in relation to Romania's GDP is quite low. This low level can be attributed to inadequate financial education. Through ISF and our collective efforts, we need to do more to educate people on the necessity of health insurance for accessing quality medical services,” said Marcu.
Health Minister Alexandru Rafila quickly assessed the state of private health insurance and suggested creating a roadmap involving the Ministry of Health, the Ministry of Finance, CNAS, and private sector representatives.
“Unfortunately, Romania has predominantly developed a market for health subscriptions rather than private health insurance, mainly due to unclear definitions of which medical services could be covered by such insurance. The Ministry of Health, in collaboration with CNAS and representatives from insurance companies, should establish a roadmap. This roadmap should define objectives for increasing private insurance funding to improve health service quality,” Rafila proposed.
Cristian Roșu, Vice President of the Financial Supervisory Authority, highlighted the importance of private health insurance for the future of Romania's medical system. Last year, gross indemnities paid for private health insurance amounted to approximately 60 million euros, and projections indicate this figure will continue to rise.
“Given the ongoing growth trends, we can forecast significant financial inflows into the healthcare system. Additional funding is essential for both equipment and service quality, which is becoming increasingly costly. We must tap into these market resources to meet our healthcare needs,” Roșu stated.
Valentin Ionescu, President of ISF and Director of the General Insurance Directorate at ASF, discussed the priorities of the Financial Supervisory Authority and ISF's mission, emphasizing the conduct of insurance companies and their relationship with clients.
“We have 26 insurance companies and about 270 brokerage firms. Last year, only five or six companies were truly impactful in the health insurance market, and we hope others will write more contracts this year to sustain recent growth,” Ionescu noted.
Adrian Marin, President of UNSAR and CEO of Generali Romania, welcomed the initiative to develop a roadmap for private health insurance and discussed challenges within the sector.
“The health insurance market evolved slowly until 2016, but fiscal incentives spurred rapid growth. We exceeded a significant threshold of 100 million euros in 2021, showing a 40% increase in claims. We see a rising interest and diversification of options for voluntary health insurance among consumers, indicating a demand for alternative solutions, especially for surgeries and hospitalization,” Marin explained.
In terms of financial education, UNSAR plans to expand its partnership with ISF and produce TV programs and promotional materials aimed at raising awareness.
Gerke Anno Witteveen, Vice President of UNSAR and CFO of NN Romania, emphasized the potential for growth in Romania's insurance market but noted low public awareness of risks and insurance products.
“Recent years have seen increased interest in health insurance, which is both a challenge and an opportunity for the insurance market. This growing interest requires us to adapt our processes and products to meet client needs effectively,” Witteveen stated.
The conference participants unanimously appreciated the effort to create a roadmap, proposing clearer definitions of medical services covered by public and private sectors and increasing tax deductibility for private health insurance.