Virtually, the insurers boasting the biggest sales of mandatory car insurance policies (RCA) depend on brokers the most.
Carpatica Asig, now undergoing a financial turnaround process, is the insurer selling the most through brokers, while sales through the company’s own network are just marginal. Brokers handled Carpatica policies worth RON291 million in January-June 2014, that is 95% of total underwritings.
However, brokers state ASF’s draft norm meant to cap the handling fee for RCA policies at 10% will force insurers to count more on own distribution, as a large part of retail brokers will vanish.
Still, market sources state ASF changed its mind about the capping move and the new level would be of 15% of the premium value. At the same time, the same sources say the number of days for the transfer of premiums into insurers’ accounts will be extended from 24 hours to ten days.
A similar distribution model is embraced by Euroins, a company controlled by Bulgaria’s group Eurohold. Around 90% of the company’s revenue were generated by brokers.
Like in the case of Carpatica Asig, Euroins’ portfolio is 90% made up of RCA insurance. Insurers’ move to sell RCA policies through brokers can be inclusively linked to the lower distribution costs compared to those involved by their own network.
Another company for which brokers are the main business driver is City Insurance. The insurer reported underwritings worth RON189 million in the first six months of the year, and 87% were represented by sales through brokers.
Brokers are the main distribution channel for Uniqa and Omniasig as well, with over two thirds of their underwritings being handled by brokerage companies. Astra and Allianz-Tiriac also left half of their 1H business in brokers’ hands.
On the other hand, Groupama and Asirom are among the insurers with the lowest weight of sales through brokers. Around 46% of Groupama’s underwritings, the equivalent of RON149 million, came through brokerage companies, while in the case of Asirom the weight of brokers reached 42%, the equivalent of RON121 million.
Figures show brokers have become the distribution channel insurers count on the most. Brokers in the first half of this year handled 55% of the RON4 billion policies sold by local insurers in January-June period.
Most policies sold by brokers in the first six months of this year were RCA ones.
(English version by Catalina Apostoiu)