General insurance market expected to rise by 18%

The Romanian general insurance market will rise at an annual rate of 18% in the 2008-2012 period, while life insurance premiums will see an annual 21% growth rate, according to researchandmarkets.com, which cites Business Monitor International (BMI). “The key drivers of growth in the non-life segment in 2008-2012 are the anticipated rise in nominal GDP from around 155.5 billion dollars to 226.01 dollars and an expected increase in non-life penetration from 1.68% of GDP to 2.6%,” reads the report. The key growth driver for the life insurance market is the increase in the density of life insurance, from 26.63 dollars per capita in 2007 to 70 dollars by 2012, amid a moderate decline in Romania’s population. The Romanian general insurance market is very crowded, but none of the companies has truly dominant position, features that distinguish it from neighbouring markets, such as Bulgaria and Poland. The BMI has calculated an insurance business environment rating (IBER) for the Romanian market – 55.5, which reflects the small size of the Romanian market compared with other Central and Eastern European markets, which makes it less attractive for international companies.