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1
EVOLUTION OF THE INSURANCE MARKET
IN THE 1ST QUARTER OF 2016
2
TABLE OF CONTENTS
EVOLUTION OF THE INSURANCE MARKET IN Q1 2016 ................................................................ 3
I. INSURANCE COMPANIES ........................................................................................................ 3
I.1. Gross premiums written (GI and LI) .............................................................................................. 3
Gross premiums written for general insurance .............................................................................. 8
Gross premiums written for life insurance ................................................................................... 10
I.2. Gross claims paid by insurers (GCP) ............................................................................................ 12
Gross claims paid related to general insurance ............................................................................ 13
Situation of amounts paid for gross claims, maturities and redemptions related to life insurance
...................................................................................................................................................... 16
I.3. Claims and expense ratio ............................................................................................................ 17
I.4. Technical reserves ....................................................................................................................... 19
Technical reserves established for general insurance .................................................................. 20
Technical reserves established for life insurance ......................................................................... 20
I.6. Liquidity of insurance companies ............................................................................................... 21
I.7. Reinsurance ................................................................................................................................. 22
For the general insurance category .............................................................................................. 22
For the life insurance category ..................................................................................................... 23
I.8. Statistical data under the new solvency regime ......................................................................... 24
I.9. The evolution of the motor vehicle liability insurance market (MTPL) in 2016 ......................... 29
Market share ................................................................................................................................. 32
Evolution of damages.................................................................................................................... 34
Monitoring of MTPL insurance premiums for vans and passenger vehicles January - June 2016 40
I.10. Home insurance ........................................................................................................................ 43
II. INSURANCE AND/OR REINSURANCE BROKERS ..................................................................... 47
II.1. Insurance intermediation business ............................................................................................ 47
II.2. Revenues obtained from the insurance intermediation business ............................................. 50
List of figures ..................................................................................................................................... 52
List of tables ...................................................................................................................................... 53
3
THE INSURANCE MARKET
The insurance market in Romania last year reversed the downward trend from the period 2013 - 2014
and ended 2015 with a volume of gross premiums written of RON 8.75 billion, up 8.2% compared to
the previous year. This trend continued in the first quarter of 2016, insurers accumulating in the first
quarter of 2016 gross premiums written of RON 2,430,297,723, up 9.16% over the same period last
year.
The positive development in 2016 was influenced by the contribution of general insurance segment,
which recorded an increase of 9.74% over the same period last year, while the life insurance
segment registered a growth of 6.61%.
The insurance sector remains dependent on auto insurance, gross premiums written for class A3
(Insurance of land vehicles other than railway) and class A10 (Motor vehicle liability insurance)
representing 76.34% of total gross premiums written related to the general insurance category in Q1
2016, increasing compared to the same period last year. The underwritings for the two classes of
general insurance increased in 2016, particularly for Class A10, which registered an advance of about
27% over the same period last year.
This report is based on the accounting reports submitted by insurance companies, except the
chapter on the transition to Solvency II, which is based on the reports submitted by insurance
companies falling under this regime.
I. INSURANCE COMPANIES
On 31 March 2016 there were active in the insurance market 35 insurance companies of which 20
have only practiced general insurance activity ("GI"), 8 practiced only life insurance activity ("LI") and
7 practiced composite activity.
In January 2016 the Board of the Financial Supervisory Authority (ASF) decided to apply the
measures of resolution in the case of Carpatica Asig S.A. On 27 July 2016 ASF decided to withdraw
the authorization of Carpatica Asig and trigger the bankruptcy proceedings. This does not affect data
on 31 March 2016, which include the accounting reports of Carpatica Asig.
I.1. Gross premiums written (GI and LI)
Insurers have accumulated in the first quarter (Q1) of 2016 gross premiums written worth RON
2,430,297,723, up 9.16% compared to Q1 2015:
- gross premiums written (GPW) related to general insurance (GI) amounting to RON 1,992,030,603,
up compared to first quarter of the previous year by 9.74%;
- gross premiums written related to life insurance (LI) amounting to RON 438,267,120, up compared
to the similar period of the previous year by 6.61%.
4
Figure 1 The evolution of gross premiums written in 2012 – 2016
Unlike the European insurance market, which is dominated by life insurance segment (about 61%
according to Insurance Europe1 for 2014), in Romania it accounted for only about 18% of gross
premiums written, the market being dominated by life insurance or auto insurance.
Table 1 Dynamics of allocation on insurance segments during 2012 - 2016
Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016
GI 1,733,727,436 1,707,087,760 1,698,546,602 1,815,170,223 1,992,030,603
LI 431,871,167 419,662,147 382,283,829 411,103,369 438,267,120
TOTAL 2,165,598,603 2,126,749,907 2,080,830,431 2,226,273,592 2,430,297,723
GI Share (%) 80.06% 80.27% 81.63% 81.53% 81.97%
LI Share (%) 19.94% 19.73% 18.37% 18.47% 18.03%
Table 2 Dynamics of gross premiums written on insurance classes in the period 2012 - 2016
Category Insurance
Class
GPW (RON)
Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016
GI
A1 17,598,444 47,916,906 23,478,583 31,617,673 19,798,605
A2 16,653,951 20,310,848 11,176,085 13,695,281 18,516,038
A3 453,490,765 422,824,877 432,850,965 401,837,072 404,817,878
A4 434,819 610,781 267,493 939,988 1,048,271
A5 1,909,677 2,998,097 1,595,751 3,355,232 6,136,720
A6 4,558,213 8,158,378 8,644,513 11,815,498 5,729,841
A7 13,980,833 10,950,591 10,380,251 10,074,131 10,485,193
A8 260,211,348 270,104,694 248,561,260 262,123,350 250,904,550
A9 25,533,510 24,399,973 25,880,842 27,369,201 25,158,719
1 www.insuranceeurope.eu
1.734 1.707 1.699 1.8151.992
432 420 382411
438
0
500
1.000
1.500
2.000
2.500
3.000
TI 2012 T1 2013 TI 2014 T1 2015 T1 2016
mil
. le
i
AV
AG
5
Category Insurance
Class
GPW (RON)
Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016
A10 618,068,014 676,508,834 738,580,212 879,117,632 1,115,884,713
A11 2,687,389 2,624,215 3,277,724 2,865,581 1,801,112
A12 3,511,232 4,477,237 3,282,501 3,606,202 1,124,443
A13 216,814,889 131,332,757 130,029,952 102,735,588 71,856,285
A14 25,494,747 10,228,243 7,037,615 1,382,938 1,701,061
A15 55,802,277 54,779,055 30,686,067 35,847,303 33,858,814
A16 4,255,019 5,352,773 6,964,619 8,586,255 4,689,089
A17 61,886 5,317 4,425 59,310 6,920
A18 12,660,421 13,504,184 15,847,744 18,141,988 18,512,351
TOTAL 1,733,727,436 1,707,087,760 1,698,546,602 1,815,170,223 1,992,030,603
LI
C1 257,057,991 271,624,314 254,835,232 265,637,618 298,911,233
C2 412,568 363,620 310,210 296,242 261,014
C3 156,342,701 134,459,348 112,103,245 127,641,991 116,446,901
C4 711,699 681,820 918,253 688,187 0
C5 - - - - 0
C6 - - - - 0
C7 - - - 0
A1 7,585,761 8,019,100 8,461,688 8,520,286 11,295,280
A2 9,760,447 4,513,945 5,655,201 8,319,045 11,352,692
TOTAL 431,871,167 419,662,147 382,283,829 411,103,369 438,267,120
TOTAL 2,165,598,603 2,126,749,907 2,080,830,431 2,226,273,592 2,430,297,723
Regarding geographical distribution of underwritings, it is noticed that in the case of both general
insurance and life insurance, contracts with the most important aggregate value are concluded in
Bucharest and Ilfov, followed at a significant distance by North-West and Center regions. In the case
of life insurance, the discrepancy between the region of Bucharest and Ilfov and other regions of the
country is much more pronounced.
6
Figure 2 GPW distribution for general insurance in the 8 regions of development of Romania
Figure 3 GPW distribution for life insurance in the 8 regions of development of Romania
82.16%
1.77%
3.18%
2.98% 2.54%
2.66%
1.87%
2.84%
9.61%
9.42%
5.30%
41.17%
7.94%
12.18%
6.26%
8.11%
7
The insurance market in Romania is characterized by a high degree of concentration. In 2015, 79.25%
of the total volume of gross premiums written was covered by 10 insurance companies out of 35
companies that carried out on 31 December 2015 insurance/reinsurance activity, situation similar to
previous years and the first quarter of 2016.
Table 3 The companies with the largest volumes of gross premiums written and their share in total market
(general and life insurance)
No. Company
Total premiums written
(general and life insurance)
(RON)
Total market
share (%)
1 ASIROM VIENNA INSURANCE GROUP 374,771,392 15.42
2 ALLIANZ - TIRIAC ASIGURARI 297,247,063 12.23
3 OMNIASIG VIG 225,736,834 9.29
4 CARPATICA ASIG 224,679,657 9.25
5 EUROINS ROMANIA ASIGURARE REASIGURARE 209,586,753 8.62
Total (1-5) 1,332,021,699 54.81
6 GROUPAMA ASIGURARI 199,842,136 8.22
7 CITY INSURANCE 165,297,552 6.80
8 NN ASIGURARI DE VIATA 157,431,265 6.48
9 GENERALI ROMANIA ASIGURARE REASIGURARE 131,100,249 5.39
10 UNIQA ASIGURARI 115,413,610 4.75
Total (1-10) 2,101,106,511 86.45
Other companies 329,191,212 13.55
TOTAL 2,430,297,723 100.00
8
Gross premiums written for general insurance
The total volume of gross premiums written for general insurance, in Q1 2016, was RON 1,992,030,603,
recording a growth of 9.74% compared to the same period of the previous year.
The top 10 insurance companies that underwrote general insurance premiums accumulated a value
of RON 1,897,813,206, which accounts for 95.27% of this business segment.
Table 4 Ranking of insurance companies based on gross premiums written for general insurance in the first
quarter of 2016
No. Company
Total premiums written
(general and life insurance)
(RON)
Total market
share (%)
1 ASIROM VIENNA INSURANCE GROUP S.A. 345,217,678 17.33
2 ALLIANZ - TIRIAC ASIGURARI S.A. 270,238,907 13.57
3 OMNIASIG VIG (former BCR ASIGURARI VIG) 225,736,834 11.33
4 CARPATICA ASIG S.A. 224,679,657 11.28
5 EUROINS ROMANIA ASIGURARE REASIGURARE S.A. 209,586,753 10.52
Total (1-5) 1,275,459,829 64.03
6 GROUPAMA ASIGURARI S.A. 189,354,781 9.51
7 CITY INSURANCE S.A. 165,297,552 8.30
8 UNIQA ASIGURARI S.A. 115,413,610 5.79
9 GENERALI ROMANIA ASIGURARE REASIGURARE S.A. 112,033,416 5.62
10 P.A.I.D. INSURANCE POOL 40,254,018 2.02
Total (1-10) 1,897,813,206 95.27
Other companies 94,217,397 4.73
TOTAL 1,992,030,603 100.00
Of the total gross premiums written for general insurance, the largest shares are held by classes A3
Insurance of land vehicles other than railway, A8 Insurance against fire and other natural disasters
and A10 Motor vehicle liability insurance, the share of these three classes being 88.95% of total
gross premiums written for the general insurance activity:
Class A10. Motor vehicle liability insurance (MTPL + CLI), with a volume of gross premiums
written of RON 1,115,884,713, accounting for 56.02% of total underwritings for general
insurance, recorded in the first quarter of 2016 an increase by 26.93% compared to the
same period of 2015;
Class A3. Insurance of land vehicles (CASCO), with a volume of gross premiums written of
RON 404,817,878, representing 20.32% of total general insurance, recorded in the analyzed
period a nominal growth of 0.74% compared to the same period of 2015;
Class A8. Insurance against fire and other natural disasters, with a volume of gross premiums
written of RON 250,904,550, accounting for 12.60% of total underwritings for general
insurance, recorded in the first quarter of 2016 a nominal growth of 4.28% compared to the
same period of 2015.
9
Table 5 Structure on general insurance classes
Class
GPW (RON) Share
2016
Percentage
change
2016/2015 (%) Q1 2013 Q1 2014 Q1 2015 Q1 2016
A3 422,824,877 432,850,965 401,837,072 404,817,878 20.32% 0.74
A8 270,104,694 248,561,260 262,123,350 250,904,550 12.60% -4.28
A10 676,508,834 738,580,212 879,117,632 1,115,884,713 56.01% 26.93
Other
classes 337,649,355 278,554,165 272,092,169 220,423,462 11.07% -18.99
TOTAL 1,707,087,760 1,698,546,602 1,815,170,223 1,992,030,603 100.00% 9.74
Figure 4 Evolution of the volume of gross premiums written on general insurance classes (million RON)
In dynamics it is noticed that in the last 4 years the share of gross premiums written for class X has
grown consistently from year to year, to the detriment of other important classes of general
insurance, which shows that the dependence of the overall market on MTPL insurance has increased
(MTPL risk being predominantly in class X).
423 433 402 405
270 249 262 251
677739
879
1.116
338279 272
220
-
200,0
400,0
600,0
800,0
1000,0
1200,0
T1 2013 T1 2014 T1 2015 T1 2016
PBS (lei)
A3 A8 A10 Alte clase
10
Figure 5 Structure dynamics on general insurance classes
Gross premiums written for life insurance
The life insurance segment recorded an increase by 6.61% in the first quarter of 2016 compared to
the same period of the last year.
Also, a high degree of concentration was maintained in 2016, so 10 companies held a share of
92.63% of the total volume of premiums written in this segment, with total underwritings of RON
438,267,120.
Table 6 Ranking of insurance companies based on gross premiums written for life insurance in 2016
No. Company GPW LI (RON)
Market share
(%)
1 NN ASIGURARI DE VIATA SA 157,431,265 35.92
2 METROPOLTAN 62,910,173 14.36
TOTAL (1-2) 220,341,438 50.28
3 BCR ASIGURARI DE VIATA VIENNA INSURANCE GROUP S.A. 43,628,529 9.96
4 ASIROM VIENNA INSURANCE GROUP S.A. 29,553,714 6.74
5 ALLIANZ - TIRIAC ASIGURARI S.A. 27,008,156 6.16
6 BRD ASIGURARI DE VIATA S.A. 25,431,957 5.80
7 GENERALI ROMANIA ASIGURARE REASIGURARE S.A. 19,066,833 4.35
8 ERGO ASIGURARI DE VIATA S.A. 17,344,173 3.96
9 UNIQA ASIGURARI DE VIATA SA 12,595,968 2.87
10 GRAWE ROMANIA ASIGURARE S.A. 11,005,845 2.51
TOTAL (1-10) 405,976,613 92.63
Other companies*) 32,290,507 7.37
TOTAL 438,267,120 100.00
24,766% 25,471% 22,149% 20,331%
15,808% 14,647%14,435%
12,600%
39,637% 43,471% 48,430% 56,024%
19,789% 16,412% 14,986% 11,044%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
T1 2013 T1 2014 T1 2015 T1 2016
A3 A8 A10 Alte clase
11
Of total gross premiums written for life insurance, the highest shares are held by classes C1 life
insurance, annuities and supplemental life insurance and, respectively, C3 Life insurance and
annuities related to investment funds, which together accumulate 94.77% of total gross premiums
written for the life insurance business.
Figure 6 Structure dynamics on life insurance classes
Dynamics analysis leads to the following conclusions:
- Class C1 “Life insurance, annuities and supplemental life insurance” increased in absolute size by
RON 33,273,615 in Q1 2016, respectively by 12.53% compared to the first quarter of 2015;
- Class C3 “Life insurance and annuities related to investment funds” increased in absolute size by
RON 11,195,090 in Q1 2016, respectively by 8.77% compared to the first quarter of 2015;
The category "other classes" had a growth pace of 28.53% compared to Q1 2015, which, in absolute
size, mean an increase in the volume of gross premiums written by RON 5,085,226. This category
mainly includes the following classes:
o class A1 Accidents with gross premiums written of RON 11,295,280, up 32.57%
compared to the first quarter of 2015;
o class A2 Health insurance with gross premiums written of RON 11,352,692, up
19.36% compared to the first quarter of 2015;
64,725% 66,661% 64,616% 68,203%
32,040% 29,325% 31,049% 26,570%
3,236% 4,014% 4,336% 5,227%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
T1 2013 T1 2014 T1 2015 T1 2016
C1 C3 Alte clase
12
Table 7 Structure on life insurance classes
Class
GPW life (RON) Class share in
Q1 2016
Pace of
change
(%) Q1 2013 Q1 2014 Q1 2015 Q1 2016
C1 271,624,314 254,835,232 265,637,618 298,911,233 68.20% 12.53%
C3 134,459,348 112,103,245 127,641,991 116,446,901 26.57% -8.77%
Other classes 13,578,485 15,345,352 17,823,760 22,908,986 5.23% 28.53%
TOTAL 419,662,147 382,283,829 411,103,369 438,267,120 100.00% 6.61%
Figure 7 Evolution of the volume of gross premiums written on life insurance classes (million RON)
I.2. Gross claims paid by insurers (GCP)
At the end of the first quarter of 2016, insurance companies reported gross claims paid (excluding
partial and total maturities and redemptions), aggregate for the two insurance categories,
amounting to RON 955,798,493, as follows:
- RON 913,410,298 related to general insurance contracts (95.57%), down 12.59% compared
to the similar period of 2015 (RON 1,044,934,928);
- RON 42,388,195 are amounts paid for gross claims, related to life insurance, down 2.97%
compared to the similar period of 2015 (RON 43,685,843).
Gross claims for life insurance are added to partial or total maturities and redemptions worth a total
of RON 185,984,741, value increasing by 2.65% compared to the same period of the previous year.
Gross claims paid by insurers in the general insurance segment fell in the first quarter of 2016 mainly
due to bankruptcy in the second half of 2015 of Astra, one of the most important players in the
general insurance market. Astra paid in Q1 2015 gross claims of RON 127,306,850. In 2016, the
Policyholders Guarantee Fund paid damages related to insurance contracts of the company in force
272255
266
299
134112
128116
14 15 18 23
0
50
100
150
200
250
300
350
T1 2013 T1 2014 T1 2015 T1 2016
PBS (lei)
C1 C3 Alte clase
13
at the time of bankruptcy. Eliminating Astra's impact, gross claims paid by insurers in the general
insurance segment remained approximately constant (down 0.46%).
Figure 8 The evolution of the gross claims paid including maturities and redemptions for general and life
insurance (million RON)
Table 8 The dynamics of the gross claims paid, including maturities and redemptions for general and life
insurance, during 2012-2016
Period GI + LI (RON)
Pace of change
compared to the
previous period (%)
GCP GI (RON)
Pace of change
compared to the
previous period (%)
GCP LI, Maturities,
Total and partial
redemptions (RON)
Pace of change
compared to the
previous period (%)
Q1 2012 1,265,310,041 1,090,692,799 174,617,242
Q1 2013 1,304,686,631 3.11% 1,108,771,758 1.66% 195,914,873 12.20%
Q1 2014 1,317,736,628 1.00% 1,134,608,598 2.33% 183,128,030 -6.53%
Q1 2015 1,226,117,960 -6.95% 1,044,934,928 -7.90% 181,183,032 -1.06%
Q1 2016 1,099,395,039 -10.34% 913,410,298 -12.59% 185,984,741 2.65%
Gross claims paid related to general insurance
Of total gross claims paid in Q1 2016 for general insurance, the value related to damages in previous
years was RON 747,467,789, representing 81.83% of the total (84.70% in the same period last year).
This share decreases towards the end of the year, as claim files are instrumented and liquidated for
damages happened in the current year.
In total, gross claims paid by 10 insurance companies accounted for 97.63% of total claims paid at
the level of the general insurance segment.
0
200
400
600
800
1.000
1.200
1.400
TI 2012 TI 2013 TI 2014 TI 2015 TI 2016
1.091 1.109 1.135 1.045913
175 196 183 181
186
mil
. le
i
Indemnizații brute plătite pentru asigurări de viata, Maturitati, Rascumparari totale si partiale (lei)
Indemnizații brute plătite pentru asigurări generale (lei)
14
Table 9 Insurance companies with the largest volume of gross claims paid for general insurance
No. Company GCP GI (RON) Market share (%)
1 OMNIASIG VIG 144,894,850 15.86
2 CARPATICA ASIG 126,048,279 13.80
3 EUROINS ROMANIA ASIGURARE REASIGURARE 120,376,078 13.18
4 ALLIANZ - TIRIAC ASIGURĂRI 107,526,969 11.77
TOTAL (1-4) 498,846,176 54.61
5 GROUPAMA ASIGURARI 105,180,881 11.52
6 ASIROM VIENNA INSURANCE GROUP 92,083,638 10.08
7 CITY INSURANCE 69,555,876 7.62
8 UNIQA ASIGURARI 66,491,843 7.28
9 GENERALI ROMANIA 51,274,363 5.61
10 GOTHAER ASIGURARI - REASIGURARI 8,341,462 0.91
TOTAL (1-10) 891,774,239 97.63
Other companies 21,636,059 2.37
TOTAL 913,410,298 100.00
Significant shares of gross claims paid by insurance companies were recorded in the following
insurance classes (94.38% of the total):
- Class A10. Motor vehicle liability insurance with a volume of gross claims paid of RON 521,550,867,
accounting for 57.10% of total gross claims paid for general insurance, decreasing by 12.51%
compared to the first quarter of 2015;
- Class A3. Land vehicles insurance (Casco), with a volume of gross claims paid of RON 299,076,137,
accounting for 32.74% of total gross claims paid for general insurance, decreasing by 8.16%
compared to the first quarter of 2015;
- Class A8. Insurance against fire and other natural disasters, with a volume of gross claims paid of
RON 41,421,117, accounting for 4.54% of total gross claims paid for general insurance, decreasing by
14.06% compared to the first quarter of 2015.
Gross claims paid for the other classes account for 5.62% of total payments related to general
insurance, which in absolute size meant an amount of RON 51,362,177.
15
Figure 9 Structure dynamics on classes of gross claims paid for the general insurance category
Figure 10 Evolution of the volume of GI gross claims paid (million RON)
43,446%33,620% 31,163% 32,743%
4,589%
4,886%4,613% 4,535%
46,186%
47,121%57,038% 57,099%
5,779%14,373%
7,186% 5,623%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
T1 2013 T1 2014 T1 2015 T1 2016
A3 A8 A10 Alte clase
381
326299
55 48 41
535
596
522
163
7551
0
100
200
300
400
500
600
700
TI 2014 TI 2015 TI 2016
A3 A8 A10 alte clase
16
Situation of amounts paid for gross claims, maturities and redemptions related to life
insurance
The value of gross claims, maturities and redemptions related to life insurance was, in Q1 2016, RON
185,984,741, recording a nominal growth of 2.65% over the same period last year.
Cumulative gross payments (indemnities, maturities and redemptions) of 10 insurance companies
accounted for 96.10% of total gross amounts paid at the level of the life insurance segment.
Table 10 Insurance companies with the largest amount of gross claims paid, maturities and redemptions for
life insurance
No. Company
GCP, Maturities, Total
redemptions, Partial
redemptions
Share in
total
1 NN ASIGURARI DE VIATA SA 77,723,293 41.79
2 METROPOLITAN LIFE ASIGURARI S.A. (FORMER AVIVA ASIGURARI DE
VIATA S.A.) 29,551,773 15.89
TOTAL (1-2) 107,275,066 57.68
3 ALLIANZ - TIRIAC ASIGURARI S.A. 18,097,993 9.73
4 ASIROM VIENNA INSURANCE GROUP S.A. 15,635,345 8.41
5 BCR ASIGURARI DE VIATA VIENNA INSURANCE GROUP S.A. 11,787,626 6.34
6 GENERALI ROMANIA ASIGURARE REASIGURARE S.A. 9,647,041 5.19
7 GRAWE ROMANIA ASIGURARE S.A. 5,092,631 2.74
8 SIGNAL IDUNA ASIGURARE REASIGURARE S.A. 4,245,173 2.28
9 GROUPAMA ASIGURARI S.A. 3,531,974 1.90
10 ERGO ASIGURARI DE VIATA S.A. 3,412,844 1.83
TOTAL (1-10) 178,725,693 96.10
Other companies 7,259,048 3.90
TOTAL 185,984,741 100.00
In 2016, the most significant shares in gross claims paid were held by the following insurance classes:
- class C1 Life insurance, annuities and supplemental life insurance, accounting for 63.20%
(RON 30,531,415) of total payments made (RON 31,945,808 in Q1 2015);
- class C3 Life insurance and annuities related to investment funds, accounting for 10.34%
(RON 4,620,592) of the total (RON 3,597,425 in Q1 2015);
- Payments for the other classes were in the amount of RON 7,236,188 and accounted for
14.42% of total payments related to life insurance (RON 8,172,610 in Q1 2015).
17
I.3. Claims and expense ratio
Figure 11 Quarterly evolution of claims ratio and combined claims ratio for the main general insurance
classes during 2014-2016 (Q1 of each year)
In Q1 2016 the claims ratio combined at the level of the entire market improved for insurance
classes with significant share, continuing the trend of the previous year. For CASCO and MTPL+CLI
insurances, the combined claims ratio is for the first time around 100%. However, it is likely that this
situation is intermediary, given that an important factor of the claims ratio is the variation of
technical reserves for claims that happened but haven't been approved yet, which is estimated in
general annually. Consequently, the impact of this variation is not included entirely in analyzes for
the quarter depending on policies of establishing technical reserves related to each insurance
company.
For a more thorough analysis of the claims ratio, we included in the table below the quarterly ratios
calculated on aggregate data. It is noticed that in the last quarter of 2015, especially for the class
A10, the combined claims ratio had a significant growth compared to the quarterly values. It was
due to adjustments made on technical reserves, especially following the audit of the annual financial
statements.
0
20
40
60
80
100
120
140
Ra
ta d
au
ne
i
Ra
ta c
he
ltu
ieli
lor
Ra
ta c
om
bin
ata
Ra
ta d
au
ne
i
Ra
ta c
he
ltu
ieli
lor
Ra
ta c
om
bin
ata
Ra
ta d
au
ne
i
Ra
ta c
he
ltu
ieli
lor
Ra
ta c
om
bin
ata
clasa A3 clasa A8 clasa A10
T1 2014
T1 2015
T1 2016
18
Table 11 Quarterly evolution of claims ratio and combined claims ratio for the main general insurance
classes
Class A3 Class A8 Class A10
Period Claims
ratio
The rate of
acquisition
and
administration
expenses
Combined
claims ratio Claims ratio
The rate of
acquisition
and
administration
expenses
Combined
claims ratio Claims ratio
The rate of
acquisition
and
administration
expenses
Combined
claims ratio
Q1 2014 80.65 33.21 113.86 18.28 40.90 59.18 86.8 40.69 127.49
Q2 2014 79.22 34.86 114.08 23.05 42.41 65.46 82.98 40.86 123.83
Q3 2014 79.89 35.82 115.72 32.10 42.86 74.96 80.71 39.52 120.23
Q4 2014 79.78 36.36 116.14 26.41 42.33 68.74 87.05 39.33 126.38
Q1 2015 75.98 32.62 108.60 10.78 40.35 51.13 82.02 39.31 121.33
Q2 2015 76.59 35.12 111.72 14.15 37.82 51.97 89.08 38.00 127.08
Q3 2015 75.63 35.74 111.37 16.06 37.27 53.34 82.67 35.35 118.02
Q4 2015 74.95 36.67 111.62 21.27 37.66 58.93 101.76 37.37 139.12
Q1 2016 66.18 31.37 97.55 22.85 34.23 57.08 69.79 31.87 101.66
Table 12 Quarterly evolution of the value of acquisition and administration expenses and expenses with
commissions during 2014 - 2016 (first quarter)
Period Indicator class A3 class A8 class A10
Q1 2014
acquisition and
administration expenses
154,622,705 101,053,843 250,774,764
of which expenses with
commissions
53,928,457 52,342,366 127,570,192
Q1 2015
acquisition and
administration expenses
140,607,612 97,773,962 283,104,986
of which expenses with
commissions
49,909,060 52,282,828 143,950,388
Q1 2016
acquisition and
administration expenses
133,523,005 81,011,155 268,679,448
of which expenses with
commissions
42,508,018 32,652,031 157,722,786
Figure 12 Quarterly evolution of the value of acquisition and administration expenses and expenses with
commissions during 2014 - 2016 (first quarter)
0
50.000.000
100.000.000
150.000.000
200.000.000
250.000.000
300.000.000
cheltuieli de achizitie si
administrare
din care cheltuieli cu
comisioanele
cheltuieli de achizitie si
administrare
din care cheltuieli cu
comisioanele
cheltuieli de achizitie si
administrare
din care cheltuieli cu
comisioanele
T1 2014 T1 2015 T1 2016
clasa A3 clasa A8 clasa A10
19
Table 13 Evolution of expenses with commissions in gross premiums written in the period 2014 - 2016 (first
quarter)
Period class A3 (%) class A8 (%) class A10 (%)
Q1 2014 12.46 21.06 17.27
Q1 2015 12.42 19.95 16.37
Q1 2016 10.50 13.01 14.13
Figure 13 Evolution of expenses with commissions in gross premiums written
It is noticed that the share of expenses with commissions in gross premiums written fell following
the efforts of insurance companies to reduce the combined claims ratio and thus improve the
profitability and financial stability indicators.
The average at market level on all general insurance classes fell from 16.67% in Q1 2014 to 13.49%
in Q1 2016 (Q1/2015: 16.57%).
I.4. Technical reserves
On 31 March 2016, insurance companies had established gross technical reserves for the general
and life insurance business worth a total of RON 14,772,738,663, up compared to the end of 2015
(RON 14,477,264,812). Gross technical reserves established for general insurance recorded a volume
of RON 8,155,815,078 (31 December 2015: RON 7,867,467), thus holding a share of 55.21% of the
total. For life insurance, companies established reserves worth RON 6,616,923,585 (31 December
2015: RON 6,609,799,708), level related to a share of 44.79% of the total.
-
5,000
10,000
15,000
20,000
25,000
clasa A3 clasa A8 clasa A10
T1 2014 T1 2015 T1 2016
20
Technical reserves established for general insurance
For the general insurance business, on 31 March 2016, insurance companies had established gross
technical reserves worth RON 8,155,815,078, increasing compared to 31 December 2015, which can
also be correlated with the decrease in gross claims paid. Corroborating the two indicators, basically
the value and/or number of claims incurred but not yet settled increased. This growth is generated
mainly by the increase in technical reserves for class A10, which is mainly MTPL.
The structure of gross technical reserves for the general insurance category, the share of significant
classes of the total, on 31 December 2016, was the following:
premium reserves, in gross value of RON 3,322,543,527, represents 40.74% of the total
value of gross technical reserves relating to general insurance.
claims reserves approved, worth RON 3,137,973,069, represented 38.48% of the value of
gross technical reserves established for general insurance.
gross claims reserves unapproved, worth RON 1,375,361,115, represented 16.86% of the
value of gross technical reserves established for general insurance.
Table 14 Structure of gross technical reserves for general insurance on 31 March 2016 compared to 31
December 2015
31 March 2016
Share in
total Class A3 Class A8 Class A10
Share of
significant
classes
RON (%) RON RON RON (%)
Premium reserve 3,322,543,527 40.74% 856,203,707 475,489,549 1,508,080,972 85.47%
Claim reserve approved 3,137,973,069 38.48% 360,386,601 279,316,178 2,000,470,267 84.14%
Claim reserve unapproved 1,375,367,750 16.86% 111,524,867 48,860,903 1,113,155,667 92.60%
Other technical reserves 319,930,732 3.92% 94,901,818 127,898,593 44,539,325 83.56%
Total reserves 8,155,815,078 100.00% 1,423,016,993 931,565,223 4,666,246,231 86.08%
31 December
2015
Share in
total Class A3 Class A8 Class A10
Share of
significant
classes
RON (%) RON RON RON (%)
Premium reserve 3,062,384,525 38.92% 876,989,042 461,242,448 1,235,337,609 84.04%
Claim reserve approved 3,090,414,463 39.28% 383,125,730 275,213,626 1,944,754,600 84.23%
Claim reserve unapproved 1,345,973,851 17.11% 106,213,188 40,309,623 1,101,957,433 92.76%
Other technical reserves 368,692,265 4.69% 94,693,415 132,049,123 44,616,307 73.60%
Total reserves 7,867,465,104 100.00% 1,461,021,375 908,814,820 4,326,665,949 85.12%
Technical reserves established for life insurance
For life insurance, the technical reserves maintained relatively constant compared to the end of
2015, reaching the level of RON 6,616,923,585.
21
Of these, reserves related to class C1 Life insurance, annuities and supplemental life insurance, and
those related to class C3 Life insurance and annuities account together for approximately 99% of the
total.
The increase in the value of technical reserves in life insurance is both the effect of underwriting new
risks and fluctuation of the calculated value of reserves following the change in the parameters
included in the technical base (e.g. risk-free yield used to calculate the present value of future flows
of receipts and payments, the rate of annual bonuses included in the insured amount etc.).
Unlike general insurance, where insurance policies have in general a duration of 1 year or less
(reserves established following to be released either upon claim payment or at the end of the
contract), life insurance contracts have a long time horizon, which makes reserves be kept for long
periods of time and accumulate gradually.
In the two tables below, this particularity of the life insurance business is noticed, in the current
context of evolution of the insurance market in Romania, respectively the fact that most of the
increase in gross technical reserves was determined by the increase in the value of the mathematical
reserve.
Table 15 Structure of gross technical reserves for the life insurance category, on 31 March 2016
31 March 2016 (RON) Share in total (%)
Premium reserve 460,642,758 6.96%
Mathematical reserves 5,873,680,524 88.77%
Reserve of benefits and rebates 124,859,110 1.89%
Other technical reserves 157,741,193 2.38%
Total technical reserves related to life insurance 6,616,923,585 100.00%
Table 16 Structure of gross technical reserves for the life insurance category, on 31 December 2015
31 December 2015 (RON) Share in total (%)
Premium reserve 473,673,990 7.17%
Mathematical reserves 5,842,371,891 88.39%
Reserve of benefits and rebates 133,360,953 2.02%
Other technical reserves 160,392,874 2.42%
Total technical reserves related to life insurance 6,609,799,708 100.00%
I.6. Liquidity of insurance companies
The liquidity ratio is determined as ratio between liquid assets provided by rules and short-term
liabilities of insurers to policyholders and, according to prudential requirements, has to be above
par. On 31 March 2016, the liquidity ratio for each of the insurance categories, as well as elements
contributing to its formation recorded the following sizes:
Table 17 Liquidity ratio for each of the insurance categories on 31 March 2016
Government
Bonds
(mln RON)
Municipal
bonds (mln
RON)
Securities traded
(mln RON)
Deposits
(mln
RON)
Current
account and
Cash (mln
RON)
Short-term
bonds (mln
RON)
Liquidity
ratio
GI 4.089 47 234 539 214 2.504 2.05
22
LI 3.287 64 1.244 346 60 908 5.51
Table 18 Liquidity ratio for each of the insurance categories on 31 December 2015
Governmen
t Bonds
(mln RON)
Municipal
bonds (mln
RON)
Securities traded
(mln RON)
Deposits
(mln
RON)
Current
account and
Cash (mln
RON)
Short-term
bonds (mln
RON)
Liquidity
ratio
GI 3.564 47 246 667 323 2.438 2.00
LI 3.124 64 1.257 360 55 881 5.46
Compared to 2015, it is noticed a slight increase in the level of the liquidity ratio for both general
insurance and life insurance.
I.7. Reinsurance
The rate of transfer for reinsurance has increased significantly over recent years for life insurance
activities and for the first time for life insurance activities a significant increase in gross premiums
written is noticed here.
For the general insurance category
Approximately 34% of gross premiums written in the 1st quarter of 2016 in the general insurance
segment were transferred for reinsurance, the level being the highest in the last 5 years and also in
significant increase compared to the same period of 2015, when it amounted to only about 31%.
Table 19 The evolution of GPW and net reinsurance premiums during 2012-2016 (first quarter) for GI
Period GPW (RON) Net reinsurance premiums
(RON) Rate of retention (%)
Rate of transfer for
reinsurance (%)
Q1 2012 1,733,727,436 1,287,774,923 74.28 25.72
Q1 2013 1,707,087,760 1,182,445,754 69.27 30.73
Q1 2014 1,698,546,602 1,157,417,152 68.14 31.86
Q1 2015 1,815,170,223 1,257,509,794 69.28 30.72
Q1 2016 1,992,030,603 1,386,304,452 66.53 33.47
Related to gross claims paid in the first quarter of 2016, about 75% was represented by the financial
effort of insurance companies, the remaining being amounts recovered from reinsurers, share
declining compared to the same period of 2015.
Table 20 The evolution of GCP and net reinsurance GCP during 2012-2016 (first quarter) for GI
Period GCP (RON) Net reinsurance GCP (RON) Rate of retention
(%)
Rate of transfer
for reinsurance
(%)
Q1 2012 1,090,692,799 949,457,721 87.05 12.95
Q1 2013 1,108,771,758 874,692,456 78.89 21.11
Q1 2014 1,134,608,598 659,896,255 58.16 41.84
Q1 2015 1,044,934,928 737,261,798 70.56 29.44
Q1 2016 913,410,298 696,731,534 76.28 23.72
23
From the gross technical reserves existing at the end of the first quarter of 2016, about 34% were
related to transfers for reinsurance, the share being the highest in the last 5 years and being
corroborated with the highest share of transfers for reinsurance related to gross premiums written
in this quarter (the table above).
Table 21 The evolution of gross technical reserves and net technical reserves in reinsurance during 2012-
2016 (first quarter) for GI
Period Gross technical
reserves (RON)
Net technical reserves in
reinsurance (%)
Rate of retention
(%)
Rate of transfer for
reinsurance (%)
Q1 2012 7,307,368,338 5,276,908,100 72.21 27.79
Q1 2013 6,957,220,269 4,905,250,497 70.51 29.49
Q1 2014 7,297,736,309 5,450,238,078 74.68 25.32
Q1 2015 7,794,436,538 5,598,323,126 71.82 28.18
Q1 2016 8,155,815,078 5,425,406,011 66.52 33.48
Traditionally, there are important differences in terms of reinsurance policy between the life
insurance business and the general insurance business. For an important part of the general
insurance products (e.g. catastrophe insurance, liability insurance), as part of the own risk
management strategy, insurers often resort to various forms of contracts of transfer for reinsurance,
thus limiting the maximum damage incurred in case of insured evens with significant financial
impact.
For the life insurance category
In the case of life insurance, in general insurance companies take a much larger share of the
underwritten risk. Due to the fact that insurance premiums are in general expected and
compensation in case of occurrence of the insured event is set under contract for each event, so
more predictable, life insurance companies don't resort as frequently as general insurance
companies to the transfer for reinsurance. In the last 5 years, the rate of transfer for reinsurance
was below 4% of gross premiums written and no more 2% of gross technical reserves, fluctuations
from year to another not being significant, except for the first quarter of 2016.
Table 22 The evolution of GPW and net reinsurance premiums during 2012-2016 (first quarter) for LI
Period Gross premiums
written (RON) Net reinsurance premiums (RON)
Rate of retention
(%)
Rate of transfer
for reinsurance (%)
Q1 2012 431,871,167 418,134,645 96.82 3.18
Q1 2013 419,662,147 404,663,812 96.43 3.57
Q1 2014 382,283,829 368,791,710 96.47 3.53
Q1 2015 411,103,369 395,395,018 96.18 3.82
Q1 2016 438,267,120 388,565,961 88.66 11.34
24
Table 23 The evolution of GCP and net reinsurance GCP during 2012-2016 (first quarter) for LI
Period GCP
(RON) Net reinsurance GCP (RON)
Rate of retention
(%)
Rate of transfer
for reinsurance
(%)
Q1 2012 32,801,363 28,616,564 87.24% 12.76%
Q1 2013 31,946,430 29,455,080 92.20% 7.80%
Q1 2014 36,683,740 32,772,931 89.34% 10.66%
Q1 2015 43,685,843 37,387,050 85.58% 14.42%
Q1 2016 42,388,195 37,794,323 89.16% 11.34%
Table 24 The evolution of gross technical reserves and net technical reserves in reinsurance during 2012-
2016 (first quarter) for LI
Period Gross technical
reserves (RON)
Net technical reserves in
reinsurance (%)
Rate of retention
(%)
Rate of transfer
for reinsurance
(%)
Q1 2012 4,991,821,240 4,901,654,068 98.19% 1.81%
Q1 2013 5,584,699,095 5,491,700,234 98.33% 1.67%
Q1 2014 5,943,881,236 5,869,018,309 98.74% 1.26%
Q1 2015 6,290,008,894 6,250,732,255 99.38% 0.62%
Q1 2016 6,616,923,585 6,586,679,218 99.54% 0.46%
I.8. Statistical data under the new solvency regime
Entry into force of Solvency II Directive as of 1 January 2016 required insurance companies to align
with new rules and standards. The Directive enhances consumer protection by introducing
prudential financial requirements (Pillar I) suitable for securing the guarantee of payments to
owners and/or beneficiaries of insurance policies.
32 insurance companies became subject to this regime on 1 January 2016.
Being a prudential regime based on risks, Solvency II uses specific models of evaluation of assets,
liabilities and capital requirement for insurance activities. By applying them, significant differences
Technical reserves
Minimum capital requirement
(MCR)
Solveny capital requirement (SCR) Total liabilities
=
Total Assets
Other obligations
Prudential financial requirements according to Solvency II
25
result compared to the values calculated according to statutory regulations (Solvency I regime),
especially in terms of reserves and prudential financial requirements (capital requirement).
Figure 14 Additional requirement of capitalization following the move to SII
According to Solvency II, capital requirements for insurance companies are higher, being based on
risks actually taken by them (both from an investment perspective and in terms of underwritings). A
comparative analysis between capital requirements imposed by Solvency II and Solvency I indicates
for the insurance sector in Romania an additional requirement of capitalization worth RON 1.26bn at
market level, which accounts for approximately 16% of the volume of gross premiums written in
2015.
The additional requirement of financing appeared with the move to the Solvency II regime is
partially covered by the surplus of own funds resulting from the change of the asset and reserve
evaluation method (especially for life insurance). Thus, on 1 January 2016 companies had eligible
own funds to cover capital requirements increasing by RON 1.14bn (about 40%) compared to the
available solvency margin on 31 December 2015, according to the previous prudential regime.
Figure 15 Additional capitalization resulting from the move to Solvency II
During Q1 2016, both the value of assets and that of liabilities of insurance companies (measured
according to the principles of Solvency II regime) increased marginally. Thus, total assets of
003
001
001
,00
,500
1,00
1,500
2,00
2,500
3,00
Cerință de capital SII Cerință de capital SI Cerință suplimentară ca urmare a trecerii la SII
Mil
iard
e le
i
3,97
2,83
1,14
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
Fonduri proprii eligibile Marja disponibilă Diferență fonduri proprii
Mil
iard
e le
i
26
insurance companies increased by 3.5% in the first quarter of 2016 compared to the value posted on
1 January 2016.
Figure 16 The evolution of total assets and liabilities of insurance companies
During the first quarter, assets of insurance companies increased faster than liabilities (according to
evaluations based on Solvency II), which is the expression of a viable activity in the market as a
whole. Thus, the surplus of assets compared to liabilities was RON 3.92bn on 31 March 2016, up
compared to RON 3.78bn on 1 January 2016.
Figure 17 The evolution of Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR)
Following the increase in the underwriting activity, the level of prudential financial requirements
(expressed in the Solvency II regime by SCR and MCR) also increased during Q1 2016.
A comparative analysis between the situation recorded on Day 1 and that existing at the end of the
first quarter of 2016 indicates an increase in the solvency capital requirement (SCR) by RON 27mln,
i.e. a nominal increase by over 1%. This indicator has a meaning equivalent to the maximum
between the safety fund and the minimum solvency margin that was calculated in the Solvency I
regime.
016017
013 013
0
2
4
6
8
10
12
14
16
18
Day 1 Trim. I 2016
Mil
iard
e le
i
Total active Total datorii
2.599 2.626
1.104 1.134
,0
500,0
1000,0
1500,0
2000,0
2500,0
3000,0
Day 1 Trim. I 2016
Mil
ioa
ne
le
i
SCR MCR
27
Regarding the minimum capital requirement, which replaces with the entry into force of Solvency II
regime the safety fund, an increase is noticed during Q1, by 2.7% (about RON 30mln).
Eligible own funds to cover the solvency capital requirement was at the end of Q1 2016 RON 4.02bn,
up 1.5% compared to Day 1.
Figure 18 The evolution of eligible own funds to cover the solvency capital requirement
The aggregate value of eligible own funds to cover SCR is formed by totaling the own funds of the
company classified on the 3 tiers defined by the Solvency 2 regime depending on quality criteria.
Figure 19 The structure of eligible own funds to cover SCR (D1)
On 1 January 2016 (the first day of applicability of the Solvency II regime), eligible own funds were
worth RON 3.9bn at the level of the entire system, consisting mainly of Tier 1 items without
restrictions (93.11%) and Tier 2 items (4.77%).
During the first quarter, eligible own funds had an upward evolution, reaching the value of RON 4bn.
In terms of components, there were no significant changes, Tier 1 items without restrictions still
having the largest share (93.51%).
004 004
000
001
001
002
002
003
003
004
004
005
Day 1 Trim. I 2016
Mil
iard
e le
i
Rang 1 fără restricții
93%
Rang 1 cu
restricții 1%
Rang 2
5%
Rang 3
1%
Altele
7%
28
Figure 20 The structure of eligible own funds to cover SCR (31 March 2016)
The significant share of Tier 1 items in total eligible own funds indicates that, at market level, the
capital held by insurance companies in Romania is of very good quality (mainly equity).
SCR and MCR rates represent the ratio between the eligible own funds to cover capital requirements
and their actual value. In the first quarter of 2016, there are 6 companies that fail to fulfill the
Solvency Capital Requirement (SCR), of 32 that report in the Solvency 2 regime, and 4 that fail to
fulfill the Minimum Capital Requirement (MCR), of which 3 don't fulfill the Solvency Capital
Requirement either.
Figure 21 The distribution of insurance companies depending on SCR/MCR rate on 31 March 2016
Rang 1 fără restricții
94%
Rang 1 cu
restricții 0%
Rang 2
5%
Rang 3
1%
Altele
6%
29
It can be noticed that for most companies the value of eligible own funds increased marginally
during Q1 2016. Also, the degree of coverage of SCR improved both for the entire market (as it result
from data presented above) and at individual level, for most of the companies. Also, it is noticed that
on 31 March 2016 for most companies the level of eligible own funds was positive and the SCR rate
was above par.
I.9. The evolution of the motor vehicle liability insurance market (MTPL) in 2016
In early 2016, the following nine insurers authorized by ASF for MTPL activities were active in the
insurance market: Allianz-Ţiriac Asigurări S.A., Asigurarea Românească - Asirom Vienna Insurance
Group S.A., Societatea de Asigurare - Reasigurare City Insurance S.A., Carpatica SA, Euroins România
Asigurare - Reasigurare S.A., Generali Romania Asigurare Reasigurare S.A., Groupama Asigurări S.A.,
Omniasig Vienna Insurance Group S.A. and Uniqa S.A. On 27 July 2016, the operating authorization
was withdrawn for Carpatica SA, the bankruptcy proceedings being triggered in its case.
Table 25 The evolution of gross premiums written for class A10 (MTPL+CLI)
Period GPW class A10
(MTPL + CLI) (RON) Pace of change GPW (%)
Q 1 2011 667,874,341 -
Q 1 2012 618,068,014 7.46%
Q 1 2013 676,508,834 9.46%
Q 1 2014 738,580,212 9.18%
Q 1 2015 879,117,632 19.03%
Q 1 2016 1,115,884,713 26.93%
The total amount of insurance premiums underwritten for MTPL during the first quarter of 2016
amounted to RON 1,078,284,954, the remainder to the total of the A10 class representing the
carrier liability insurance.
The MTPL segment was one of the most dynamic during 2015, with an increase in gross premiums
written much more extensive compared to the market average. Thus, the total amount of insurance
premiums written for MTPL at the end of 2015 reached the value of RON 3,115 thousand, compared
to 2014 recording an increase by 16.6%. This growth continued in the first quarter of 2016, with an
increase in gross premiums written by 31.6% compared to the same period of the previous year.
30
Figure 22 The evolution of gross premiums written for MTPL during 2010-2015
Figure 23 The evolution of gross premiums written for MTPL quarterly during 2015-2016
Table 26 The pace of change of MTPL market indicators from quarter to quarter during 2015-2016
Period
GPW MTPL
(thousand
RON)
Pace of change
(%)
Average
premium
(RON)
Pace of change
(%)
No. of
contracts
(annual units)
Pace of change
(%)
Q1/2015 819,416
592 1,384,486
Q2/2015 745,994 -8.96% 629 6.24% 1,186,430 -14.31%
Q3/2015 638,534 -14.40% 678 7.86% 941,515 -20.64%
Q4/2015 911,149 42.69% 740 9.17% 1,230,662 30.71%
Q1/2016 1,078,285 18.34% 747 0.86% 1,444,059 17.34%
Expressed in annual units (to take into account the various duration of policies), the number of
contracts concluded for MTPL in the first quarter of 2016 was 1,444,059, which means an increase
by 4.30% compared to the similar period of the previous year and by 17.34% compared to the fourth
quarter of 2015.
2010 2011 2012 2013 2014 2015
PBS (mii lei) 2.464.451 1.874.886 2.055.110 2.367.108 2.671.700 3.115.092
Nr contracte încheiate 6.539.783 6.400.066 6.779.620 6.901.857 7.141.794 7.314.551
Nr contracte (unități anuale) 4.064.523 4.184.632 4.325.404 4.399.068 4.602.825 4.743.093
01.000.0002.000.0003.000.0004.000.0005.000.0006.000.0007.000.0008.000.000
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
3.500.000
PBS (mii lei) Nr contracte încheiate Nr contracte (unități anuale)
Q12015 Q22015 Q32015 Q42015 Q12016
PBS (mii lei) 819.416 745.994 638.534 911.149 1.078.285
Nr contracte încheiate 1.986.031 1.877.921 1.554.967 1.895.632 2.050.417
Nr contracte (unități anuale) 1.384.486 1.186.430 941.515 1.230.662 1.444.059
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
PBS (mii lei) Nr contracte încheiate Nr contracte (unități anuale)
31
This increase in the number of MTPL contracts (both as a total and especially expressed in annual
units) was accompanied by an improvement in the contracts' structure on maturities. Thus,
compared to Q1 2015 it is noticed a significant growth of the number of MTPL contracts concluded
with a duration of 12 months (+7.7%) and a decrease in the number of contracts for 6 months (-
1.92%), while the number of contracts for 1 month was maintained very low (only 6.46% of the
total).
At the same time, data below show that the total number of MTPL policies in force at the end of Q1
2016 was 4,652,631, up approximately 3% compared to the same period of the previous year.
Table 27 Number of contracts on natural and legal persons
Name of the indicator
3/31/2016 3/31/2015
Natural
persons
Legal
persons Total
Natural
persons
Legal
persons Total
Number of contracts in force
at the end of the reporting
quarter (1), of which
3,527,480 1,125,151 4,652,631 3,425,001 1,093,427 4,518,428
With validity for 6 months or
12 months 3,488,306 1,115,961 4,604,267 3,389,518 1,087,648 4,477,166
With validity for 1 month 39,174 9,190 48,364 35,483 5,779 41,262
Number of contracts
concluded in the reporting
financial year (2), of which:
1,586,031 464,386 2,050,417 1,544,028 442,003 1,986,031
With validity for 12 months 701,433 246,602 948,035 641,931 238,339 880,270
With validity for 6 months 767,322 202,659 969,981 800,110 188,857 988,967
With validity for 1 month 117,276 15,125 132,401 101,987 14,807 116,794
Gross premiums collected (3): -
RON - 502,199,585 452,538,026 954,737,611 429,817,523 352,447,911 782,265,434
Gross premiums written (4), of
which: - RON - 521,879,258 556,405,696 1,078,284,954 431,323,004 388,092,613 819,415,617
With validity for 12 months 269,507,457 324,457,579 593,965,036 222,212,417 255,157,009 477,369,426
With validity for 6 months 243,737,647 229,973,771 473,711,418 202,946,997 131,405,055 334,352,052
With validity for 1 month 8,634,154 1,974,346 10,608,500 6,163,590 1,530,549 7,694,139
Table 28 The share of the number of contracts concluded in the period in total contracts depending on the
contracted period - quarterly 2015-2016
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
For a period of 12 months 44.32% 32.62% 29.64% 36.90% 46.24%
For a period of 6 months 49.80% 59.87% 60.11% 54.63% 47.31%
For a period of 1 month 5.88% 7.52% 10.25% 8.47% 6.46%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
In terms of distribution of contracts depending on the contracted period of the policy (12 months/6
months/1 month), the evolution in the last 5 years indicates a slight trend of consolidation of the
market, in the sense of increase in the share of MTPL policies concluded for a period of 1 year.
32
Table 29 The share of the number of contracts concluded in total contracts depending on the contractor
(natural or legal person) -quarterly 2015-2016
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
Natural persons 77.74% 79.45% 79.13% 78.99% 77.35%
Legal persons 22.26% 20.55% 20.87% 21.01% 22.65%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
In the last year, there were no significant changes in the structure of customer portfolios, so at the
level of the entire market the share of contracts concluded with natural persons remained constant,
around 78-79%.
Market share
After Asirom bankruptcy (exit from the market of a top 3 competitor), it was noticed that market
redistribution was made among a small group of companies, respectively Asirom, Carpatica, Euroins
and City, noticing the strong growth of Asirom, to approximately 26% of the MTPL market (Asirom
has basically doubled its market share in the first 3 months of 2016).
Table 30 Ranking of insurance companies based on gross premiums written for MTPL in the first quarter of
2016:
No. Company GPW MTPL (RON) Share (%)
1 ASIROM VIG 278,608,851 25.84
2 CARPATICA ASIG 206,971,941 19.19
3 EUROINS ROMANIA 200,533,238 18.60
4 CITY INSURANCE 125,162,012 11.61
5 ALLIANZ - TIRIAC ASIGURĂRI 74,810,033 6.94
Total (1-5) 886,086,075 82.18
6 OMNIASIG VIG 60,797,198 5.64
7 GROUPAMA ASIGURĂRI 55,322,671 5.13
8 UNIQA ASIGURĂRI 49,321,297 4.57
9 GENERALI ROMANIA 26,757,713 2.48
TOTAL 1,078,284,954 100.00
Also, a significant concentration is noticed to the first insurers of the top, reaching the situation
where the top 4 insurers hold over 75% of the MTPL portfolio in Romania.
Regarding the history of competition in the MTPL market and the battle for winning higher market
share, statistics for 2011-2015 indicate that traditionally the MTPL market in Romania has been
dominated by 3-4 large insurers, while the shares of the other players were much lower or even
insignificant. For example, at the end of 2015 the companies with the largest share in the MTPL
market were Euroins, Carpatica and Asirom, which held together over half the market (51.18%).
33
Table 31 Evolution of market shares recorded on MTPL for 2011-2015:
Year 2011 Year 2012 Year 2013 Year 2014 Year 2015
1 Euroins 12.8% 18.8% 19.5% 16.6% 22.0%
2 Carpatica Asig 9.2% 12.7% 17.3% 18.0% 16.4%
3 Asirom VIG 15.6% 10.8% 8.6% 9.4% 12.7%
4 City Insurance 0.3% 2.3% 7.5% 10.7% 10.4%
5 Omniasig VIG*) 20.4% 10.2% 7.9% 9.9% 10.2%
6 ASTRA***) 20.3% 16.7% 15.1% 15.4% 8.7%
7 Allianz Țiriac 8.0% 8.3% 8.7% 8.3% 8.2%
8 Groupama 4.3% 9.3% 5.2% 4.3% 5.6%
9 Uniqa 4.3% 7.1% 8.2% 5.5% 3.8%
10 Generali**) 4.6% 3.6% 1.7% 1.7% 1.9%
11 ABC 0.1% 0.1% 0.3% 0.3% 0.0%
Total 100% 100% 100% 100% 100%
*) For the years before the merger, Omniasig and BCR Asigurari Generale figures were compiled
**) For the years before the merger, Generali and Ardaf figures were compiled
***) Data on 30 June 2015 for 2015
ASIROM VIG ranks the first in terms of the volume of gross premiums written for MTPL, holding a
market share of approximately 26%. Insurance companies Carpatica, Euroins, City Insurance and
Allianz Țiriac hold significant shares in the MTPL market, being in the top 5 companies in this
segment by gross premiums written.
According to the main indicators used by the Competition Council, the concentration risk in the MTPL
market is medium to high, the top 5 players holding a total market share of over 82%.
The Herfindahl-Hirschman index (HH) is calculated by summing the squares of the individual market
shares of all firms in the market. Thresholds used in this analysis consider a high concentration for an
index higher than 0.2, a moderate concentration for HH between 0.1 and 0.2 and a low concentration
for HH less than 0.1.
34
Figure 24 Degree of concentration of the MTPL market
Evolution of damages
At the level of the entire market, the value of gross damage paid was RON 513,798,063, down 12%
from the same quarter of 2015. The number of claim files paid recorded a decrease by
approximately 15%, from 85,209 to 74,743 files. Thus, the average claim paid for the market as a
whole was approximately RON 6.874. This decrease is mainly generated by the exit in 2015 of an
important player from the market (Astra), claims for MTPL contracts related to this company
currently being paid by the Policyholders Guarantee Fund.
The number of claim files for bodily injuries for the entire market in Q1 2016 was 2,510 files, up
0.5%, the value of gross compensation paid amounting to RON 98,060,033, down over 9% compared
to the same period of the previous year. It results an average compensation for bodily injuries of
RON 39,068. While during 2010-2015 there was an increase by 4 times in the volume of
compensation paid for bodily injuries, in the first quarter of 2016 the trend seems to have reversed.
Figure 25 The quarterly evolution of MTPL claims paid on bodily injuries (in thousand RON)
06
4%
08
2%
09
3%
,164,997
-
,020,000
,040,000
,060,000
,080,000
,100,000
,120,000
,140,000
,160,000
,180,000
000%
010%
020%
030%
040%
050%
060%
070%
080%
090%
100%
CR3 CR5 CR7 HHI
Q12015 Q22015 Q32015 Q42015 Q12016
Vatamari corporale 108.104 118.588 91.396 121.091 98.060
Numar dosare 2.498 1.601 1.288 1.406 2.510
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
0
500
1.000
1.500
2.000
2.500
3.000
35
For material damages, gross compensations of RON 415,738,030 were paid, resulting an average of
RON 5,756, up around 2.9% compared to Q1 2015.
Figure 26 The quarterly evolution of MTPL material damages (in thousand RON)
Table 32 The evolution of technical reserves quarterly during 2015 - Q1 2016 (thousand RON)
Table 33 The situation on companies of claim files paid in Q I 2016 (the current year and the previous years)
COMPANY
Number of claim files
paid (pieces)
Share in
total
Gross compensation paid
(RON)
Share in
total
VC DM Total % VC DM Total %
1 ABC2 2 13 15 0.02% 54,000 31,181 85,181 0.02%
2 ALLIANZ 136 5,274 5,410 7.24% 4,320,852 23,863,331 28,184,183 5.49%
3 ASIROM 625 8,309 8,934 11.95% 10,386,802 55,247,536 65,634,338 12.77%
2 the MTPL authorization of ABC Asigurări was withdrawn upon demand in 2015
Q12015 Q22015 Q32015 Q42015 Q12016
Daune materiale 476.812 363.548 312.206 358.044 415.738
Numar dosare 85.209 66.331 55.973 60.267 72.233
0
100.000
200.000
300.000
400.000
500.000
600.000
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
90.000
Q12015 Q22015 Q32015 Q42015 Q12016
Total 2.649.845 2.752.071 2.324.281 2.756.322 2.987.479
IBNR 877.460 854.233 747.750 941.051 1.059.143
RBNS 1.772.385 1.897.838 1.576.531 1.815.271 1.928.336
0
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
7.000.000
36
4 CARPATICA 476 14,837 15,313 20.49% 26,163,535 93,830,651 119,994,186 23.35%
5 CITY 85 8,762 8,847 11.84% 3,036,544 52,148,208 55,184,752 10.74%
6 EUROINS 358 19,951 20,309 27.17% 19,523,230 98,657,237 118,180,467 23.00%
7 GENERALI 110 1,395 1,505 2.01% 3,788,480 6,037,328 9,825,808 1.91%
8 GROUPAMA 190 3,331 3,521 4.71% 4,061,932 17,698,704 21,760,636 4.24%
9 OMNIASIG 382 6,634 7,016 9.39% 19,395,848 43,600,190 62,996,038 12.26%
10 UNIQA 146 3,727 3,873 5.18% 7,328,810 24,623,664 31,952,474 6.22%
TOTAL 2,510 72,233 74,743 100.00% 98,060,033 415,738,030 513,798,063 100.00%
Figure 27 The evolution of the average premium and average claim during 2010-2015
The comparative analysis between the evolution of the average MTPL premium and the volume of
the average claim paid by insurers indicates a similar evolution in 2010-2015, respectively a constant
increase in the value of the average claim, which was inherently felt in the MTPL premium.
Figure 28 The evolution of the average premium and average claim during 2015-2016 - quarterly
For the entire market, the average annualized MTPL premium increased in the first quarter of 2016
by only 0.86% compared to the last quarter of 2015, respectively by 26.16% compared to the same
period of the previous year.
2010 2011 2012 2013 2014 2015
Prima medie RCA 606 448 475 538 580 657
Dauna medie RCA 4.854 5.311 6.010 6.284 6.901 7.101
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
0
100
200
300
400
500
600
700
Prima medie RCA Dauna medie RCA
Q12015 Q22015 Q32015 Q42015 Q12016
Prima medie RCA 592 629 678 740 747
Dauna medie RCA 6.669 7.097 7.048 7.769 6.874
0
100
200
300
400
500
600
700
800
6.000
6.200
6.400
6.600
6.800
7.000
7.200
7.400
7.600
7.800
8.000
37
Table 34 The average premium annualized in RON at market level in the last consecutive 5 quarters
The average premium annualized in RON at market level 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1
Total market 592 629 678 740 747
Natural persons 411 439 476 502 477
Legal persons 1,162 1,267 1,319 1,517 1,593
- For contracts for 12 months 542 597 663 704 627
- For contracts for 6 months 676 660 689 784 977
- For contracts for 1 month 791 829 832 954 961
The average MTPL damage paid in the first quarter of 2016 fell compared to the fourth quarter of
2015, but increased compared to the first quarter of 2015. Given that technical reserves increased
significantly in the first quarter of 2016, this decrease in the average claim depending on claims paid
may be overestimated. However, if the decrease in the level of the average claim in Q1 2016 is
confirmed by the evolution of this indicator in the following quarters, it creates prerequisites for
capping the growth of MTPL tariffs in the coming period, given that the claim is the main cost
influencing the MTPL price.
Table 35 Detailing the method of calculation of the average premium for Q1 2016
Total Natural Persons Legal Persons
Number of contracts concluded for the period, of which 2,050,417 1,586,031 464,386
For a period of 12 months 948,035 701,433 246,602
For a period of 6 months 969,981 767,322 202,659
For a period of 1 month 132,401 117,276 15,125
MTPL premiums written - RON of which: 1,078,284,954 521,879,258 556,405,696
With validity for 12 months 593,965,036 269,507,457 324,457,579
With validity for 6 months 473,711,418 243,737,647 229,973,771
With validity for 1 month 10,608,500 8,634,154 1,974,346
The average MTPL premium for 12-month contracts
(calculated as ratio between the volume of premiums
written for contracts with a validity of 12 months and the
number of MTPL contracts with a validity of 12 months) -
RON
626.52 384.22 1,315.71
The average annualized MTPL premium for 6-month
contracts (calculated as ratio between the volume of
premiums written for contracts with a validity of 6 months
and the number of MTPL contracts with a validity of 6
months multiplied by 2) - RON
976.74 635.29 2,269.56
The average annualized MTPL premium for 1-month
contracts (calculated as ratio between the volume of
premiums written for contracts with a validity of 1 month
and the number of MTPL contracts with a validity of 1
month multiplied by 12) - RON
961.49 883.47 1,566.42
Annual exposure units (number of 12-month
contracts + number of 6-month contracts divided by
2 + number of 1-month contracts divided by 12)
1,444,059 1,094,867 349,192
Average annualized MTPL premium - RON (Weighted
average of average annualized premiums for each
category with the number of annual exposure units in
each category)
746.70 476.66 1,593.41
38
Table 36 The evolution of average claim for natural persons during 2015-2016
Quarter
Individuals
Bodily injuries Material damages Total
Q1/2015
Number of claim files paid: 1,632 52,484 54,116
Gross claims paid: - RON - 68,589,662 271,143,740 339,733,402
Average claim 42,028 5,166 6,278
Q2/2015
Number of claim files paid: 1,009 39,323 40,332
Gross claims paid: - RON - 65,989,681 194,198,539 260,188,220
Average claim 65,401 4,939 6,451
Q3/2015
Number of claim files paid: 793 33,086 33,879
Gross claims paid: - RON - 52,041,183 178,884,723 230,925,906
Average claim 65,626 5,407 6,816
Q4/2015
Number of claim files paid: 837 35,778 36,615
Gross claims paid: - RON - 69,954,986 182,708,411 252,663,397
Average claim 83,578 5,107 6,901
Q1/2016
Number of claim files paid: 1,544 44,835 46,379
Gross claims paid: - RON - 56,216,290 231,004,383 287,220,673
Average claim 36,410 5,152 6,193
Table 37 The evolution of average claim during 2015-2016
Quarter
Legal entities
Bodily injuries Material damages Total
Q1/2015
Number of claim files paid: 866 32,725 33,591
Gross claims paid: - RON - 39,514,694 205,668,176 245,182,870
Average claim 45,629 6,285 7,299
Q2/2015
Number of claim files paid: 592 27,008 27,600
Gross claims paid: - RON - 52,598,756 169,349,729 221,948,485
Average claim 88,849 6,270 8,042
Q3/2015
Number of claim files paid: 495 22,887 23,382
Gross claims paid: - RON - 39,354,345 133,321,646 172,675,991
Average claim 79,504 5,825 7,385
Q4/2015
Number of claim files paid: 569 24,489 25,058
Gross claims paid: - RON - 51,135,764 175,336,059 226,471,823
Average claim 89,870 7,160 9,038
Q1/2016
Number of claim files paid: 966 27,398 28,364
Gross claims paid: - RON - 41,843,743 184,733,647 226,577,390
Average claim 43,317 6,743 7,988
39
Table 38 The evolution of average claim per total during 2015-2016
Quarter
Total
Bodily injuries Material damages Total
Q1/2015
Number of claim files paid: 2,498 85,209 87,707
Gross claims paid: - RON - 108,104,356 476,811,916 584,916,272
Average claim 43,276 5,596 6,669
Q2/2015
Number of claim files paid: 1,601 66,331 67,932
Gross claims paid: - RON - 118,588,437 363,548,268 482,136,705
Average claim 74,071 5,481 7,097
Q3/2015
Number of claim files paid: 1,288 55,973 57,261
Gross claims paid: - RON - 91,395,528 312,206,369 403,601,897
Average claim 70,959 5,578 7,048
Q4/2015
Number of claim files paid: 1,406 60,267 61,673
Gross claims paid: - RON - 121,090,750 358,044,470 479,135,220
Average claim 86,124 5,941 7,769
Q1/2016
Number of claim files paid: 2,510 72,233 74,743
Gross claims paid: - RON - 98,060,033 415,738,030 513,798,063
Average claim 39,068 5,756 6,874
40
Monitoring of MTPL insurance premiums for vans and passenger vehicles January - June
2016
ASF has constantly monitored the evolution of MTPL tariffs in the segment of vans/trucks
and passenger vehicles, requesting aggregate information from each insurer on the number of MTPL
policies and the actual value of gross premiums written in these categories of vehicles.
Starting with the month of January 2016, the monitoring and statistical analyzes on the
evolution of MTPL tariffs for vans/trucks and passenger vehicles were made systematically, on a
monthly basis, by ASF.
The aggregate results at the level of the entire market were made public by press releases,
the statistical data being still available on the website of the institution
(http://asfromania.ro/ro/informatii-publice/statistici/statistici-asigurari).
Thus, according to reports sent by insurance companies within the monitoring process of
MTPL tariff evolution handled by ASF, in January 2016 (the moment of initiating the comparative
analyzes on MTPL tariffs), the average premium for policies concluded for 12 months, calculated
cumulatively for the vans/trucks and passenger transport segments, recorded an increase of 42%
compared to June 2015. Separately, in the vans/trucks segment, the average premium climbed by
46%, while for passenger transport vehicles the increase was 61%. In particular, if only the group of
vehicles falling with B0 bonus class is analyzed, the reports of insurers show that the average
premium increased by 43% for the two segments cumulatively, respectively by 47% for the
vans/trucks segment and by 36% for passenger transport vehicles.
Moreover, statistical data centralized in the following months have not indicated significant
increases in the MTPL tariffs, usually recording only slight adjustments upwards or downwards,
depending on the evolution of the type and/or volume of contracts concluded, respectively on the
categories of policyholders and insured vehicles in the respective period.
According to the latest statistics available at ASF, at the level of both categories of vehicles
included in monitoring (vans/trucks and means of passenger transport), on all bonus-malus classes,
the average increase in MTPL premiums in the period of June 2015 - June 2016 was 52.73%, within
the 50% ceiling set under the Protocol concluded by ASF with carriers in December 2015. In June
2016, the average premium for the two categories decreased by 4.3% compared to May, registering
a correction after the 6.1% rise in May compared to April.
The average premium related to Compulsory Civil Liability Insurance for Motor Vehicles
(MTPL) concluded for vehicles in the category of means of passenger transport, on all bonus-malus
classes, for 12 months, fell in June 2016 by 26% compared to the level recorded in the previous
month, after in May it had recorded a decrease by 10.8% vs. April. Thus, for the first time since ASF
started the monthly monitoring of MTPL tariffs evolution on the main segments of vehicles, the
average MTPL premium for the group of carriers of passengers marks two consecutive months of
decline, indicating a significant move for regulating the market and reshaping the portfolio structure.
The data are even more relevant as in June 2016 2,218 policies were concluded for this group of
vehicles, up 40% compared to sales in April and May. Thus, the average premium for means of
passenger transport in June was RON 3,458, by 14.24% higher than in June 2015. Evolution of
premiums differs from one vehicle segment to another, depending on risk data, but reports to ASF
show, for example, a decrease of over 10% of the average MTPL premium for means of passenger
41
transport with up to 18 seats in June 2016 vs. June 2015. For the segment with 18-40 seats, the
average MTPL premium increased in the last year by 11.16%.
The MTPL market remained tense in the category of vans/trucks, where the average
premium related to policies for twelve months fell by 2.4% in June compared to May, while in May it
had climbed by 8% compared to April. Compared to June 2015, the average premium for this
category of vehicles registered a growth of 61.55%, amounting to RON 3,016. For the segment
between 7.5 and 16 tons, the average MTPL premium was in June RON 2,207, 11.85% higher than in
June 2015, while for commercial vehicles weighing up to 3.5 tons the annual average premium
increase was 15.4%.
ASF will continue the process of monitoring of actual tariffs charged for both categories of vehicles
included in monitoring (vans/trucks and means of passenger transport), the results following to be
made public each time.
Figure 29 The evolution of the average monthly premium (RON) for vans/trucks for the bonus/malus
category B0
Iunie 2015Ianuarie
2016
Februarie
2016
Martie
2016
Aprilie
2016Mai 2016 Iunie 2016
pana la 3500 1.343 1.526 1.550 1.554 1.582 1.610 1.713
intre 3500 si 7500 2.285 2.048 1.871 1.767 2.375 2.391 2.376
intre 7500 si 16000 2.804 2.624 2.604 2.519 2.823 4.224 2.913
>16000 6.058 9.965 10.002 10.426 10.699 10.679 10.790
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
11.000
pana la 3500 intre 3500 si 7500 intre 7500 si 16000 >16000
42
Figure 30 The evolution of the average monthly premium (RON) for vans/trucks for the bonus/malus
category BM
Figure 31 The evolution of the average monthly premium (RON) for passenger transport vehicles for the
bonus/malus category B0
Iunie 2015Ianuarie
2016
Februarie
2016
Martie
2016
Aprilie
2016Mai 2016 Iunie 2016
pana la 3500 968 1.050 1.123 1.096 1.127 1.073 1.117
intre 3500 si 7500 1.700 1.625 1.567 1.276 1.764 1.947 1.966
intre 7500 si 16000 1.973 2.354 1.826 2.417 2.161 2.735 2.207
>16000 4.701 7.856 8.356 8.095 8.391 8.704 8.489
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
11.000
pana la 3500 intre 3500 si 7500 intre 7500 si 16000 >16000
Iunie 2015Ianuarie
2016
Februarie
2016
Martie
2016
Aprilie
2016Mai 2016 Iunie 2016
Total 4.240 5.785 5.824 6.537 6.234 6.155 6.229
pana la 18 locuri 3.256 4.161 4.318 3.896 4.023 4.354 4.135
intre 18 si 40 locuri 4.590 5.831 5.071 6.777 8.061 5.639 5.933
>40 locuri 5.798 6.953 6.817 7.465 5.257 7.344 7.806
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
11.000
Total pana la 18 locuri intre 18 si 40 locuri >40 locuri
43
Figure 32 The evolution of the average monthly premium (RON) for passenger transport vehicles for the
bonus/malus category BM
I.10. Home insurance
For voluntary home insurance, 2016 continued the downward trend. This reflects a lower activity in
terms of underwriting risks, the number of contracts newly concluded and gross premiums written,
recording in the first quarter of 2016 significant declines compared to the same period last year,
while gross claims paid have not fallen at the same pace.
Table 39 The dynamics of contracts and the volume of gross premiums written for voluntary home insurance
during 2012-2016 (quarterly)
Period
Number of
contracts in force
(pieces)
Number of contracts concluded
in the reporting period (pieces)
Gross premiums
written (RON)
Gross claims paid
(RON)
Q1 2012 4,061,395 629,138 119,088,708 14,580,222
Q1 2013 3,352,152 630,311 131,306,239 16,980,317
Q1 2014 2,285,812 468,916 87,733,256 12,987,067
Q1 2015 1,824,118 853,066 120,411,927 13,618,911
Q1 2016 1,304,663 319,397 72,591,841 11,871,399
Iunie 2015Ianuarie
2016
Februarie
2016
Martie
2016
Aprilie
2016Mai 2016 Iunie 2016
Total 3.027 4.638 4.614 4.848 5.237 4.671 3.458
pana la 18 locuri 2.648 5.424 5.552 5.930 5.981 5.409 3.017
intre 18 si 40 locuri 3.927 6.013 5.417 5.686 6.496 5.060 4.366
>40 locuri 3.571 3.112 2.972 3.162 3.123 3.066 3.210
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
11.000
Total pana la 18 locuri intre 18 si 40 locuri >40 locuri
44
Figure 33 Evolution of the number of contracts and the volume of gross premiums written for
Voluntary home insurance during 2012-2016 (quarterly)
Compulsory home insurance is illustrated by the activity results of the Insurance Pool Against
Disasters PAID. They show a slight improvement for most indicators: the number of contracts in
force at the end of the period increased by about 7.6% and gross premiums written grew by 16.34%.
Table 40 Evolution of compulsory home insurance
Period
Number of contracts in force
at the end of the reporting
period (pieces)
Number of new contracts,
concluded in the reporting
period (pieces)
Gross premiums
written (RON)
Gross claims paid
(RON)
Q1 2012 496,270 34,298 2,237,967 73,827
Q1 2013 333,860 37,042 2,493,767 36,904
Q1 2014 1,085,078 386,408 32,822,850 234,934
Q1 2015 1,524,491 419,937 34,599,272 1,324,975
Q1 2016 1,640,783 469,927 40,254,018 326,490
0
20.000.000
40.000.000
60.000.000
80.000.000
100.000.000
120.000.000
140.000.000
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
3.500.000
4.000.000
4.500.000
T1 2012 T1 2013 T1 2014 T1 2015 T1 2016
Prime brute subscrise (lei)
Indemnizatii brute platite (lei)
Numar contracte in vigoare (buc.)
Numar contracte incheiate in perioada raportare (buc.)
45
Figure 34 Evolution of compulsory home insurance
For the home insurance market as a whole (compulsory and voluntary), the first quarter of 2016 saw
a decline in gross premiums written (approximately -27.20%) and in the number of new contracts,
while the number of contracts in force decreased by about 38%.
Table 41 Evolution of home insurance (compulsory and voluntary)
Period
Number of contracts in force at
the end of the reporting period
(pieces)
Number of new contracts,
concluded in the reporting
period (pieces)
Gross
premiums
written
(RON)
Gross claims
paid (RON)
Q1 2012 4,557,665 663,436 121,326,675 14,654,049
Q1 2013 3,686,012 667,353 133,800,006 17,017,221
Q1 2014 3,370,890 855,324 120,556,106 13,222,001
Q1 2015 3,348,609 1,273,003 155,011,199 14,943,886
Q1 2016 2,945,446 789,324 112,845,859 12,197,889
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
30.000.000
35.000.000
40.000.000
45.000.000
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
1.800.000
T1 2012 T1 2013 T1 2014 T1 2015 T1 2016
Prime brute subscrise (lei)Indemnizatii brute platite (lei)Numar contracte in vigoare (buc.)Numar contracte incheiate in perioada raportare (buc.)
46
Figure 35 Evolution of home insurance (compulsory and voluntary)
0
20.000.000
40.000.000
60.000.000
80.000.000
100.000.000
120.000.000
140.000.000
160.000.000
180.000.000
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
3.500.000
4.000.000
4.500.000
5.000.000
T1 2012 T1 2013 T1 2014 T1 2015 T1 2016
Prime brute subscrise (lei)Indemnizatii brute platite (lei)Numar contracte in vigoare (buc.)Numar contracte incheiate in perioada raportare (buc.)
47
II. INSURANCE AND/OR REINSURANCE BROKERS
According to data centralized on 31 March 2016, a total of 331 insurance and/or reinsurance brokers
conducted the activity of intermediation in insurance and/or damage settlement.
II.1. Insurance intermediation business
In the first three months of 2016, the premiums intermediated by insurance brokers (RON
1,539,935,313) accounted for 65.05% of gross premiums written by insurers. Compared to the
similar period of 2015, there was an increase by 19.26% in premiums intermediated for both
categories of insurance.
Premiums intermediated for general insurance amounted to RON 1,501,201,350, accounted
for 97.48% of total premiums intermediated and the intermediation degree was 75.36%.
Premiums intermediated for life insurance, in the amount of RON 38,733,963, had an
intermediation degree of 10.32%.
Table 42 Insurance intermediation degree
Period Intermediated premiums (RON) Intermediation degree (%)
Total GI LI Total GI LI
31.03.2012 829,147,579 802,588,157 26,559,422 38.29 46.29 6.150
31.03.2013 965,271,666 934,164,565 31,107,101 45.39 54.72 7.41
31.03.2014 1,120,775,625 1,092,584,190 28,191,435 53.86 64.32 7.37
31.03.2015 1,287,316,779 1,255,418,013 31,898,766 57.82 69.16 7.76
31.03.2016 1,539,935,313 1,501,201,350 38,733,963 65.05 75.36 10.32
Analyzing the structure of premiums intermediated by insurance brokers on classes of general
insurance, it is noticed that, in the first quarter of 2016, a significant share in total premiums
intermediated for general insurance (RON 1,539,935,313), was held by the following classes:
1. class A10. Motor vehicle liability insurance (MTPL+CLI) accounts for 58.95% (RON 884,953,283);
2. class A3. Land vehicles insurance (Casco) accounts for 19.45% (RON 291,988,986);
3. class A8. Insurance against fire and other natural disasters accounts for 9.12% (RON 136,873,343);
4. other classes held a share of 12.48% (RON 187,385,738) of total general insurance premiums
intermediated.
48
Figure 36 Structure on general insurance classes of premiums intermediated on 31 March 2016 (%)
Figure 37 Structure on general insurance classes of premiums intermediated on 31 March 2015 (%)
Analyzing the structure of premiums intermediated by insurance brokers on classes of life
insurance, it is noticed that, in the first quarter of 2016, the largest share is held by the following
classes:
1. class C1 "Life insurance, annuities and supplemental life insurance", amounting to RON
32,881,975, respectively 84.89% of total premiums intermediated for the life insurance
category;
2. class C3 "Life insurance and annuities related to investment funds (unit-linked): RON
3,488,846, respectively 9.01% of total premiums intermediated for the life insurance
category;
The other life insurance classes accounted for 6.01% of total premiums intermediated.
49
Figure 38 Structure on life insurance classes of premiums intermediated on 31 March 2016 (%)
Figure 39 Structure on life insurance classes of premiums intermediated on 31 March 2015 (%)
087
006007
Clasa C1 Clasa C3 Altele
50
Table 43 Top 10 insurance brokers, depending on premiums intermediated
No. Broker
name TOTAL LI TOTAL GI
TOTAL
LI + GI
Market
share (%)
1 SAFETY BROKER DE ASIGURARE S.R.L. 266,629 123,333,729 123,600,358 8.03%
2 MARSH - BROKER DE ASIGURARE-REASIGURARE S.R.L. 3,188,758 109,793,823 112,982,581 7.34%
3 TRANSILVANIA BROKER DE ASIGURARE S.R.L. 143,355 91,467,652 91,611,007 5.95%
4 DESTINE BROKER DE ASIGURARE-REASIGURARE S.R.L. 1,042,478 72,034,020 73,076,498 4.75%
5 INTER BROKER DE ASIGURARE S.R.L. 130,801 70,172,641 70,303,442 4.57%
6 DAW MANAGEMENT - BROKER DE ASIGURARE S.R.L. 8,782 62,222,585 62,231,367 4.04%
7 CAMPION BROKER DE ASIGURARE S.R.L. 1,387,937 50,154,056 51,541,993 3.35%
8 UNICREDIT INSURANCE BROKER S.R.L. 228,775 40,785,897 41,014,672 2.66%
9 AON ROMANIA BROKER DE ASIGURARE - REASIGURARE
S.R.L 709,497 33,490,703 34,200,200 2.22%
10 PORSCHE BROKER DE ASIGURARE S.R.L.
33,871,868 33,871,868 2.20%
Total (1-10) 7,107,012 687,326,974 694,433,986 45.10%
Total 38,733,963 1,501,201,350 1,539,935,313 100.00%
II.2. Revenues obtained from the insurance intermediation business
Revenues obtained from the insurance intermediation business, according to quarterly reports sent by
350 insurance brokers for 31 March 2016, recorded a value of RON 262,554,773, in nominal growth by
9.37% compared to the same period of 2015 (RON 240,063,726).
Table 44 The evolution of intermediation revenues
Period
GP
W
(R
ON
)
Int
er
me
dia
ted
pre
mi
um
s
(R
ON
)
Re
ve
nu
es
fro
m
the
int
er
me
dia
tio
n
bus
ine
ss
(R
ON
)
Int
er
me
dia
ted
pre
miu
ms
/GP
W
(%)
31.03.2015
2,2
26,
27
3,5
92
1,2
87,
31
6,7
79
24
0,0
63,
72
6
57.
82
%
51
31.03.2016
2,3
67,
38
7,5
50
1,5
39,
93
5,3
13
26
2,5
54,
77
3
65.
05
%
The structure of revenues obtained from the insurance intermediation business, according to
reports sent by insurance brokers, for 31 March 2016:
a) revenues from the negotiation of insurance contracts, recorded a value of RON 257,095,843,
increasing compared to the similar period of 2015 by 9.55%;
b) revenues from risk inspections, amounting to RON 5,028, up 100% compared to the previous
period of 2015;
c) revenues from damage settlement, amounting to RON 3,918,646, down 0.08% compared to the
similar period of 2015;
d) revenues from damage inspections, amounting to RON 47,019, down 77.33%, compared to the
same period of 2015;
e) revenues from other activities in relation to the line of business, amounting to RON 1,493,265, up
19.97% compared to the same period of 2015.
52
List of figures
Figure 1 The evolution of gross premiums written in 2012 – 2016 ................................................................... 4
Figure 2 GPW distribution for general insurance in the 8 regions of development of Romania ........................ 6
Figure 3 GPW distribution for life insurance in the 8 regions of development of Romania .............................. 6
Figure 4 Evolution of the volume of gross premiums written on general insurance classes (million RON) ....... 9
Figure 5 Structure dynamics on general insurance classes ............................................................................. 10
Figure 6 Structure dynamics on life insurance classes .................................................................................... 11
Figure 7 Evolution of the volume of gross premiums written on life insurance classes (million RON) ............ 12
Figure 8 The evolution of the gross claims paid including maturities and redemptions for general and life
insurance (million RON) ......................................................................................................................... 13
Figure 9 Structure dynamics on classes of gross claims paid for the general insurance category ................... 15
Figure 10 Evolution of the volume of GI gross claims paid (million RON) ....................................................... 15
Figure 11 Quarterly evolution of claims ratio and combined claims ratio for the main general insurance
classes during 2014-2016 (Q1 of each year) ........................................................................................... 17
Figure 12 Quarterly evolution of the value of acquisition and administration expenses and expenses with
commissions during 2014 - 2016 (first quarter) ..................................................................................... 18
Figure 13 Evolution of expenses with commissions in gross premiums written ............................................. 19
Figure 14 Additional requirement of capitalization following the move to SII ............................................... 25
Figure 15 Additional capitalization resulting from the move to Solvency II .................................................... 25
Figure 16 The evolution of total assets and liabilities of insurance companies .............................................. 26
Figure 17 The evolution of Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR) . 26
Figure 18 The evolution of eligible own funds to cover the solvency capital requirement ............................. 27
Figure 19 The structure of eligible own funds to cover SCR (D1) .................................................................... 27
Figure 20 The structure of eligible own funds to cover SCR (31 March 2016) ................................................. 28
Figure 21 The distribution of insurance companies depending on SCR/MCR rate on 31 March 2016 ............. 28
Figure 22 The evolution of gross premiums written for MTPL during 2010-2015 ........................................... 30
Figure 23 The evolution of gross premiums written for MTPL quarterly during 2015-2016 ............................ 30
Figure 24 Degree of concentration of the MTPL market ................................................................................. 34
Figure 25 The quarterly evolution of MTPL claims paid on bodily injuries (in thousand RON) ........................ 34
Figure 26 The quarterly evolution of MTPL material damages (in thousand RON) ......................................... 35
Figure 27 The evolution of the average premium and average claim during 2010-2015 ................................. 36
Figure 28 The evolution of the average premium and average claim during 2015-2016 - quarterly ............... 36
Figure 29 The evolution of the average monthly premium (RON) for vans/trucks for the bonus/malus
category B0 ........................................................................................................................................... 41
Figure 30 The evolution of the average monthly premium (RON) for vans/trucks for the bonus/malus
category BM .......................................................................................................................................... 42
Figure 31 The evolution of the average monthly premium (RON) for passenger transport vehicles for the
bonus/malus category B0 ...................................................................................................................... 42
Figure 32 The evolution of the average monthly premium (RON) for passenger transport vehicles for the
bonus/malus category BM .................................................................................................................... 43
Figure 33 Evolution of the number of contracts and the volume of gross premiums written for voluntary
home insurance during 2012-2016 (quarterly) ....................................................................................... 44
Figure 34 Evolution of compulsory home insurance ....................................................................................... 45
Figure 35 Evolution of home insurance (compulsory and voluntary) ............................................................. 46
Figure 36 Structure on general insurance classes of premiums intermediated on 31 March 2016 (%) ........... 48
Figure 37 Structure on general insurance classes of premiums intermediated on 31 March 2015 (%) ........... 48
Figure 38 Structure on life insurance classes of premiums intermediated on 31 March 2016 (%) .................. 49
Figure 39 Structure on life insurance classes of premiums intermediated on 31 March 2015 (%) .................. 49
53
List of tables
Table 1 Dynamics of allocation on insurance segments during 2012 - 2016 ..................................................... 4
Table 2 Dynamics of gross premiums written on insurance classes in the period 2012 - 2016 ......................... 4
Table 3 The companies with the largest volumes of gross premiums written and their share in total market
(general and life insurance) ..................................................................................................................... 7
Table 4 Ranking of insurance companies based on gross premiums written for general insurance in the first
quarter of 2016 ....................................................................................................................................... 8
Table 5 Structure on general insurance classes ................................................................................................ 9
Table 6 Ranking of insurance companies based on gross premiums written for life insurance in 2016 .......... 10
Table 7 Structure on life insurance classes ..................................................................................................... 12
Table 8 The dynamics of the gross claims paid, including maturities and redemptions for general and life
insurance, during 2012-2016 ................................................................................................................. 13
Table 9 Insurance companies with the largest volume of gross claims paid for general insurance ................. 14
Table 10 Insurance companies with the largest amount of gross claims paid, maturities and redemptions for
life insurance ......................................................................................................................................... 16
Table 11 Quarterly evolution of claims ratio and combined claims ratio for the main general insurance
classes ................................................................................................................................................... 18
Table 12 Quarterly evolution of the value of acquisition and administration expenses and expenses with
commissions during 2014 - 2016 (first quarter) ..................................................................................... 18
Table 13 Evolution of expenses with commissions in gross premiums written in the period 2014 - 2016 (first
quarter) ................................................................................................................................................. 19
Table 14 Structure of gross technical reserves for general insurance on 31 March 2016 compared to 31
December 2015 ..................................................................................................................................... 20
Table 15 Structure of gross technical reserves for the life insurance category, on 31 March 2016 ................. 21
Table 16 Structure of gross technical reserves for the life insurance category, on 31 December 2015 ........... 21
Table 17 Liquidity ratio for each of the insurance categories on 31 March 2016 ............................................ 21
Table 18 Liquidity ratio for each of the insurance categories on 31 December 2015 ...................................... 22
Table 19 The evolution of GPW and net reinsurance premiums during 2012-2016 (first quarter) for GI ........ 22
Table 20 The evolution of GCP and net reinsurance GCP during 2012-2016 (first quarter) for GI ................... 22
Table 21 The evolution of gross technical reserves and net technical reserves in reinsurance during 2012-
2016 (first quarter) for GI ...................................................................................................................... 23
Table 22 The evolution of GPW and net reinsurance premiums during 2012-2016 (first quarter) for LI ......... 23
Table 23 The evolution of GCP and net reinsurance GCP during 2012-2016 (first quarter) for LI .................... 24
Table 24 The evolution of gross technical reserves and net technical reserves in reinsurance during 2012-
2016 (first quarter) for LI ....................................................................................................................... 24
Table 25 The evolution of gross premiums written for class A10 (MTPL+CLI) ................................................. 29
Table 26 The pace of change of MTPL market indicators from quarter to quarter during 2015-2016 ............. 30
Table 27 Number of contracts on natural and legal persons .......................................................................... 31
Table 28 The share of the number of contracts concluded in the period in total contracts depending on the
contracted period - quarterly 2015-2016 ............................................................................................... 31
Table 29 The share of the number of contracts concluded in total contracts depending on the contractor
(natural or legal person) -quarterly 2015-2016 ...................................................................................... 32
Table 30 Ranking of insurance companies based on gross premiums written for MTPL in the first quarter of
2016: ..................................................................................................................................................... 32
Table 31 Evolution of market shares recorded on MTPL for 2011-2015: ........................................................ 33
Table 32 The evolution of technical reserves quarterly during 2015 - Q1 2016 (thousand RON) ................... 35
54
Table 33 The situation on companies of claim files paid in Q I 2016 (the current year and the previous years)
.............................................................................................................................................................. 35
Table 34 The average premium annualized in RON at market level in the last consecutive 5 quarters .......... 37
Table 35 Detailing the method of calculation of the average premium for Q1 2016 ...................................... 37
Table 36 The evolution of average claim for natural persons during 2015-2016 ............................................ 38
Table 37 The evolution of average claim during 2015-2016 ........................................................................... 38
Table 38 The evolution of average claim per total during 2015-2016 ............................................................. 39
Table 39 The dynamics of contracts and the volume of gross premiums written for voluntary home insurance
during 2012-2016 (quarterly) ................................................................................................................. 43
Table 40 Evolution of compulsory home insurance ........................................................................................ 44
Table 41 Evolution of home insurance (compulsory and voluntary) ............................................................... 45
Table 42 Insurance intermediation degree .................................................................................................... 47
Table 43 Top 10 insurance brokers, depending on premiums intermediated ................................................. 50
Table 44 The evolution of intermediation revenues ...................................................................................... 50