Grawe pays 500,000 euros on cancelled policies

Grawe, one of the top ten life insurance companies on the Romanian market, paid almost 500,000 euros to clients that cancelled their life insurance contracts in the last three months of last year and in the first quarter of 2009, according to company data. During that period, cancellations rose significantly for all life insurance companies in the context of the financial crisis, which could lessen client confidence in investment products. However, the last two months saw cancellations slow down to some degree. In all, almost 1,600 Grawe clients dropped out of their contracts before maturity, 639 of whom in the last quarter of 2008, and 969 in the first three months of this year. “The share of cancelled contracts is insignificant, considering that Grawe’s portfolio consists of around 159,000 contracts in all,” explained company officials. Cancellations account for around 1% of the overall number of policies sold by Grawe. By dropping out of their life insurance contract before due date, the client loses part of the sum invested, with the sum received upon cancellation being lower than that paid in the form of premiums.