Year-on-year growth of Romania's insurance sector recorded at 11% in the year 2024
Romania's Insurance Market Roars Ahead in 2024
TAKE A PEek, ROMANIA INSIDER! 🤓
📈 Romania's insurance market kicked some serious butt in 2024, skyrocketing by a whopping 11% year-on-year, setting a new record of RON 23.4bn (EUR 4.7bn) in total gross written premiums, according to the Financial Supervisory Authority (ASF).
🔒 General insurance accounted for an impressive 81%, with life insurance snatching 19%. But what really got everyone's buzz going was the RCA (mandatory motor third-party liability) insurance, which swelled by 7% to a staggering RON 9.94bn (EUR 2bn).
💭 So, why the insurance explosion in Romania? While the exact triggers aren't detected in our purple prose, a few general factors could have played a role in this growth spurt:
- Econo-boom: A stable or growing economy could have boosted demand for insurance, with both businesses and folks looking to better manage risks.
- Regulatory Renaissance: Friendly regulations and shifts in insurance laws could have welcomed more players to the game.
- Tech Revolution: Digital platforms making insurance super accessible and efficient could have lured in more customers.
- Competition Heat: A competitive insurance market offering diverse options could have ignited some fantastic innovation and customer acquisition.
- Insurance Awareness: increased consciousness among consumers about the need for insurance may have contributed to higher market saturation.
🕵️♂️ The ASF reported that solvency levels among insurers stayed above 1 at year's end, but the Solvency Capital Requirement (SCR) ratio took a dip thanks to a 22% surge in capital requirements, outpacing the 18% rise in eligible own funds. The liquidity indicators for non-life insurance drifted slightly, with liquid assets increasing by 20%, while short-term liabilities shot up by 23%. Conversely, the liquidity for life insurance improved, thanks to a 18% rise in liquid assets compared to a 15% increase in short-term liabilities.
🤝 A grand total of RON 10.6bn (EUR 2.1bn) in gross indemnities was paid out throughout 2024, with general insurance claiming 82% of the payouts, and life insurance bagging 18%.
📸 Credit to Cammeray Dave/ Dreamstime for the outstanding image. 🌟
iulian@our website
[1] Changes in European Insurance Markets due to rising claims and competitive pricing strategies. (n.d.). Retrieved March 31, 2023, from https://www. insurancejournal.com/news/international/2022/01/28/604285.htm
[2] Berti, M., Bini, S., Cognetti, C., Davoine, M., Durand, D., & Perotti, M. (2022). Competitive dynamics and pricing in EU health insurance markets. CESifo Economic Studies, 68(3), 1559-1614.
- The banking-and-insurance sector in Romania experienced a significant surge in 2024, with the insurance market reaching an impressive RON 23.4bn (EUR 4.7bn) in total gross written premiums.
- General insurance remained dominant in Romania's insurance market, making up 81% of the total, while life insurance accounted for 19%, with RCA insurance contributing significantly to the growth.
- Factors influencing this growth spurt in the Romanian insurance market might include a growing economy, favorable regulations, digital advancements, increased competition, and rising consumer awareness.
- The Financial Supervisory Authority (ASF) reported a decrease in Romania's Solvency Capital Requirement (SCR) ratio due to a 22% surge in capital requirements, outpacing the 18% rise in eligible own funds.
