Insurance market in Romania was around EUR 659 Million over the 1st three months of 2007 - translating into the gross under written premiums of worth RON 2.227 Billion.
Insurance market in Romania was around EUR 659 Million over the 1st three months of 2007 - translating into the gross under written premiums of worth RON 2.227 Billion, as per the preliminary data that was presented by the CSA (Insurance Supervision Commission), Zf.Ro published this in news.
The market registered a growth of 41 percent in RON and around 48 percent in EUR (euros) terms, against the 1Q 2006. Considering this trend, officials at CSA are optimistic that the market will cross two billion euros' mark this year. This will imply a 26 percent boost in euros over the figures of last year. Viewing this trend in the start of 2007, it's evident that the market is expanding continuously and the growth should continue it the coming months as well.
The insurance market in Romania will progressively align the rapid growth to more developed insurance markets in the western world. Sustained by Romania's macro economic growth, the increasing purchasing power of people and an apt legislative framework, the market growth is expected to remain high (almost 20%) for the years to come.
Non life insurance segment dominates the market, and life segment reached its plateau during the last three years at approximately 22-24% of overall market. Real-estate loans will further drive this growth, as they will lead to spurt in home insurance, car leasing sales as well as a spike in tariffs for the insurance of cars. In addition, future private pension-funds' development, for which law has been voted by parliament recently, will further spurt this growth. Moreover, the mandatory dwelling insurance for the disaster bill will likely be voted in the year 2007's beginning itself. The bill is expected to be effective either from July this year or next year.
As per a research analyst at RNCOS, "Insurance market in Romania may witness further 23% rise in 2007, as gross subscribed premiums will likely cross EUR 2 Billion mark. Market players anticipate the size of the insurance market to reach EUR 3 Billion by the year 2011."
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