Life insurance companies expect the market to expand by as much as 5% this year, relying on the sale of unit-linked policies, as well as of sickness and accident insurance products.
Last year, life insurance revenues rose by 2.3% to 1.67 billion lei (around EUR400 million), after a 13% decline in 2009.
“Given the slight economic rebound this year and individuals’ still low levels of available cash, I project a marginal increase of as much as 5% at best for the life insurance market,” says Cornelia Coman, general manager of ING Asigurari, the biggest life insurer.
Life insurers will remain profitable this year, while the other market segment, general insurance, which accounts for 80% of the total underwritten premiums, could see its third year of decline in a row.
Florina Vizinteanu, BCR Asigurari de Viata’s chairwoman of the board, has a more cautious forecast about the trend of the life insurance market in 2011 and expects growth of around 3%. BCR Asigurari de Viata ranks second on the market.
Even with an advance of below 5%, the share of life insurance should reach 22% of the overall market at the end of the year. However, this is still low compared with the other CEE countries. Life insurance accounts for 58% of the total in Poland, and for 54% and 46% in Hungary and the Czech Republic.