“The car insurance market goes hand in hand with the auto market. RCA underwritings rose 16% to RON1.756 billion, the same level in 2010, which is a pretty good sign, because, for the first time in a long time, there is growth on the RCA segment,” Mona Cucu, head of ASF’s mandatory insurance division, said Thursday at the conference “Mediafax Talks about Auto Industry 2013.”
Cucu also said the number of new RCA contracts did not grow significantly; therefore, it is obvious the increase in RCA underwritings is due to higher tariffs charged by insurance companies.
Over 5.16 million RCA contracts were concluded in the first nine months of 2013. RCA policies account for 36% of overall general insurance.
According to Cucu, the growth on the segment of RCA underwritings translates into a steady increase on the segment of damage claim payments this year.
In January-September 2013, damages paid by insurers on the RCA segment increased 8% to RON1.4 billion. The average damage on the RCA segment rose 8% to RON5,239, Cucu added.
Romania’s insurance market stood at RON6.1 billion in the first nine months of 2013, steady on the year, while damages paid by insurers fell 2.44% to RON3.69 billion, according to ASF. (EUR1=RON4.4479)