Credit insurance plunges 50%

The credit insurance market continues on a downward slope, after gross underwritten premiums derived on this segment doubled from one year to another for several years, being the growth driver for many insurers. Data from the Insurance Supervisory Commission show that nine months into this year, credit insurance contracts sealed on the Romanian market were down 53% against the same time in 2007, to around 160 million RON (44 million euros). The decline of this market started last year, when gross underwritten premiums stagnated, after doubling in previous years. “We have not sealed credit insurance contracts since April last year, and we will not conclude such contracts in the future, either. Under the current circumstances, the risk is very high. In the future, I think this market segment will end up disappearing altogether,” says Mihai Tecau, CEO of BCR Asigurari, a company that used to be the one of the largest players on this market segment, due to its relationship with the parent bank.