Sales of policies will be flat next year, says Francois Coste, general manager of Groupama Asigurari, adding that although the economy has improved, “economic growth is slower to show in insurance”.
Mariana Diaconescu, Asirom’s chairperson, shares his opinion, and says the growth of the insurance market depends on the rebound of the economy.
“The insurance market will see an upward trend when the economy overcomes the crisis, and the gross domestic product resumes growth, even though only a moderate not spectacular one. Under the circumstances, the insurance industry could grow at a rate of 2%, 3% or 4% a year,” Diaconescu says.
The most optimistic estimate came from the Allianz-Tiriac boss, Remi Vrignaud, who expects sales to go up by about 5% next year.
On the other hand, Theodor Alexandru, Metlife chairman, warns that in the absence of a healthcare reform and of incentives like deductibility, the insurance market and especially the life insurance policy segment will continue to decline.
Mihai Tecau, chairman of Omniasig, says that “in 2014 only foreign investment and European funds could drive the insurance market forward, because there will be no new customers.”
Although skeptical about the sales of policies on the market, most insurance company managers say their own business will grow and the companies they run will gain market share next year.
Insurance was severely hurt by the crisis and underwritten premiums have yet to match the 2008 level. In January-October 2013, insurers sold 6.8 billion lei (EUR1.5 billion) worth of policies, flat on the year-ago period. Life insurance saw 5% decline to RON1.4 billion in January-October, while general insurance rose 1% to RON5.4 billion, according to the Financial Supervisory Authority (ASF). (EUR1=RON4.4597)
(English version by Loredana Fratila-Cristescu)