Insurers started implementing digital solutions
Technological advancements made the need to develop digital solutions a priority of both the internal processes of companies and their relationship with the clients in 2019. Various solutions were created to review a claim file remotely, to implement chatbots and many other technologies. Moreover, some companies also took steps for a digital relationship with their clients, introducing web applications enabling them to view policies, make insurance payments online and check the status of their claims. However, the results of such solutions will only start to show next year.
Financial Supervisory Authority (ASF) left without a president, after former president Leonardo Badea became Romania’s central bank deputy governor
Leonardo Badea, the former ASF president, resigned, seeking a position in Romania’s central bank board of governors this summer. He was voted by the Parliament to become deputy governor of the institution and his former position with the ASF is still vacant even today.
New changes of auto liability insurance (RCA) legislation
The Finance Ministry proposed a bill to modify the legislation on auto liability insurance, and among the stipulations were dropping the calculation of the premiums by the ASF and no longer allowing the insured to suspend the auto liability insurance contract.
Eurohold Bulgaria – Ergo Asigurari deal
Bulgaria’s Eurohold, which operates in Romania via Euroins, signed an agreement with Germany’s Ergo in March 2019 to buy four insurance companies in three European countries, Romania included. The Bulgarian group bought the Ergo operations via Euroins Insurance Group (EIG). The deal in Romania entails buying two companies – Ergo Asigurari Generale and Ergo Asigurari de Viata, with almost EUR50 million in revenue together.
Auto liability insurance market leaders – City Insurance and Euroins Romania – fined 50,000 lei (almost EUR10,500) each by ASF
ASF fined insurers City Insurance and Euroins Romania RON50,000 each for late settlement of claims in some auto liability cases.
More and more insurers shifting focus to non-auto insurance
In 2019, a number of insurers started efforts on the non-auto segments, to stimulate development of the insurance market in a more balanced direction. The health insurance segment is a strategic avenue for some of the insurers. Health insurance rose by 30% in the first nine months of 2019 compared with the year-ago period and reached RON296.6 million gross written premiums.
Disagreements between some insurers and car repair shops worsen
The disagreements between insures and car repair shops worsened at the end of August and the beginning of September, when the AutoCar Group, which specializes in car repair services, said it had RON1 milion to recoup, plus interests and penalties, which makes it RON3 million. AutoCar lodged a complaint with the ASF and went to court requesting City Insurance be declared insolvent.
Life insurance growing slowly, while general insurance grows at double the pace and dominates the market
General insurance saw 10% growth in the first nine months of 2019 compared with the same time in 2018, while life insurance only grew by 5%. Life insurance remains at 20% of the total market in Romania, while on mature markets it generates 80% of the policy sales.
City Insurance remained leader of general insurance, NN Asigurari is undisputed leader among life insurance companies
City Insurance remains the leader of the overall market with a total volume of gross written premiums of some RON1.4 billion in the first nine months of 2019, 38% higher than in the year-ago period. Its market share stands at 17.4%, widening the gap to the second place, Allianz-Tiriac. The two were only 0.46% apart in the first nine months of 2018, while in 2019 the gap widened to 4.82%. NN Asigurari remained the leader of the life insurance market.
Brokerage market sees changes at the top
Marsh, the leader in the first half of 2018, was dislodged by Safety Broker. Safety Broker saw its revenue up 10.6% in the first half of 2019, with the premiums brokered amounting to RON259.4 million. US-held Marsh posted almost 5% growth in the first half, with RON246.5 milion premiums brokered. Safety Broker was the top insurance broker at the end of 2018, as well, with Marsh ranking second.(EUR1=RON4.7736)
(English version by Loredana Fratila-Cristescu)