Insurance market: 200 million dollars in six months

The insurance market over the first six months of the year increased by 20% in real terms, reaching about 200 million dollars. The top ten insurance companies of the 72 currently operating on the market cashed 80% of the total revenues.

The insurance market stood at 5,500 billion lei over the first semester of this year, up 57% against the year-ago period, when the insurance companies cashed total premiums worth 3,503 billion dollars.

“If we eliminate the inflation rate (which stood at 35% over this period), the actual result is an encouraging growth, especially if it maintains by the end of this year,” Nicolae Crisan, chairman of the Insurance Overseeing Commission (CSA), told Ziarul Financiar.

Total premiums cashed over the first six months of the year were worth 200 million dollars calculated at an exchange rate of 27,500 lei/dollar, against the 310 million dollars registered last year.

Considering that the insurance market has not been regulated yet, as Parliament put off designating the CSA members, the growth is a much better sign. CSA, which has the same tasks on the insurance market as the National Bank of Romania on the banking market or the National Securities Commission on the capital market, is now being organised.

“We have dealt with staff recruitment and department organisation so far, but we are going to issue a series of norms: for the authorisation of insurance companies, concerning brokers, or for making the insurance categories compliant with EU standards,” Crisan said.

A number of 72 insurance companies are currently operating in Romania, but only the first ten cashed H1 total premiums worth 4,300 billion lei, which is about 80% of the total premiums.

Separate data regarding life and non-life insurance revenues are not available yet, but, according to reports of the insurance companies, the life insurance market may have stood at 900 billion lei over the first semester.

This value points out that the life insurance share may have stood at 16% of the total, posting a slight increase as compared to last year, when it amounted to 15% of the total.