Credit insurance up 55%

Revenues of insurance companies from credit insurance policies reached 112.3 million euros (396 million RON) last year, registering a 55% increase in euros against 2005, according to the 2006 report made by the Insurance Supervision Commission (CSA). Credit insurance policies are purchased by banks and non-bank financial institutions in order to cover the debtors’ default risk. The latest available information shows that BCR Asigurari (BCR Insurance) is the market leader, with gross underwritten premiums worth 51 million euros (179.3 million RON) from credit insurance. The company’s revenues from this business increased 152% against 2005, when it sold policies worth around 20.2 million euros (73.3 million RON). In fact, the CSA report states that credit insurance will have a significant contribution to boosting the insurance market this year, estimated at around 50% in euros, with the total amount of underwritten premiums exceeding 2.4 billion euros.