2009 : The Isurance challenges year

Abstract

The insurance market in Romania has followed a tremendous evolution in the last decade, increasing annually by about 30 percent. Romanian insurance market is dominated by auto insurance, with over 60% of all subscriptions made in the first nine months of 2008. Moreover, the auto sector was and still is looking for the next period, as a true “engine of growth of the Romanian insurance market” Financial crisis facing the entire world economy has shaken many auto manufacturers of international stature, in view of the considerable reduction in the volume of sales, compared to the same period a year earlier. In Romania, too, the demand for vehicles has undergone a significant decline, if we relate to sales recorded in the previous year, especially against the backdrop of restricting credit. This reduction in sales recorded in Europe, could have a strong indirect influence on the sale of RCA and CASCO policies in Romania. Besides the auto insurance, other segments of insurance, such as life insurance (especially policies of unit-linked) could be affected by the crisis. All these issues have required legislative changes for the year 2009.