“At the end of the first quarter of the year, the general insurance segment registered a claim rate of 74.74%, and the combined ratio was 113.03%. The latter figure shows that acquisition and administration costs, plus reserves and damages paid exceed underwritten premiums,” Buzoianu said at a seminar.
He pointed out that higher risks require higher capital, as well as adequate reinsurance programs.
According to CSA, insurers ended 2010 with losses of 276.64 million lei (EUR62 million), and their profits amounted to RON235.27 million. Data regarding insurers’ 2011 results have not been revealed to the public.
CSA received an increasing number of complaints from policyholders regarding the payment of damage claims, Buzoianu highlighted.
Last week, CSA applied fines of RON80,000 to seven managers of insurance companies for a growing number of complaints from customers in the first five months of 2012. The highest fine, of RON30,000, was applied to Bogdan Alexander Adamescu, chairman of Astra’s managing board.
According to Buzoianu, the life and general insurance market rose by 0.35% in the first quarter of the year, to RON2.17 billion, supported by the general insurance segment which grew by 0.55%, to RON1.73 billion. The life insurance market shrank 0.45% in the first quarter to RON431.9 million. (EUR1=RON4.4587)