CSA expects insurance market to rise by 5% in 2010

In the first three quarters, the market stagnated as a result of the almost 10% decline posted on the life insurance segment.
The insurance market is set to end this year with a 4-5% increase and will witness a similar growth pace in 2010 as well, stated Angela Toncescu, chairperson of the Insurance Supervision Commission (CSA).
Still, as the market stagnated in the first nine months of this year, insurance firms should recoup a lot in the fourth quarter to get to a 4-5% increase for the entire year.
“In the first nine months of this year, gross underwritten premiums reached 6.7bn RON, posting insignificant growth considering the two-digit growth rates of passed years. We could have a 4-5% this year and the increase is remarkable taking into account factors such as the economic downturn or RON decline,” Toncescu stated.
Radu Mustatea, chairman of Astra Asigurari, one of the largest firms on the general insurance market, says the biggest threat for next year would be RON depreciation. “Still, I expect one-digit growth next year, at the level of the entire market,” says Mustatea.
General insurance had a better performance this year than life insurance, which went through a wave of policy cancellations, CSA chairperson also said.
According to the latest data available, over 60,000 Romanians have given up their life insurance policies this year.
Cornelia Coman, general manager of ING Asigurari de Viata, the biggest life insurer, states the volume of redeemed policies started falling from the start of the year level. ” (…) What we can do, with CSA and the Government, to bolster market development in the following period is to introduce fiscal deductibility for life insurance as well,” Coman said.
Florentina Vizinteanu, general manager of BCR Asigurari de Viata, ranking third on the market, expects the segment to rise next year.
The life insurance segment accounts for just 20% in the overall market.
Mihai Seitan, a secretary of state with the Labour Ministry, pointed to the importance of reforming the state health insurance system after the model of private pensions.