“The concentration trend, the decreasing number of RCA insurers, the mandatory character of RCA policy and the fact that certain insurers avoid certain categories of risky clients, asking for higher prices, lead to the premises of a phenomenon known as « the umbrella effect», which is mainly characteristic to oligopol markets, in which the large companies make room for smaller companies to operate profitably, by establishing high prices,“ Competition Council representatives said in a report.
Between 2005-2016, the number of RCA insurers halved to 9 companies.
In the first half of the year, the gross premiums underwritten on the RCA segment accounted for over 55.6% of the general insurance market, or RON2.16 billion (EUR485 million), according to Financial Supervisory Authority ASF.