3.

ROMANIAN
INSURANCE MARKET
 GENERAL TRENDS 2017 / Q1- Q3
• continued its growth trend in the first nine months of this year
• total gross written premiums (GWP) of 7.32 billion lei, 6% more than in the
same period of the previous year.
 SEGMENTATION EVOLUTIONS 2017
• GROSS WRITTEN PREMIUMS 2017 / Q1-Q3
• general/non-life insurance reached 5.78 billion lei in the first nine months of the
year, up by 1% over the same period of the previous year
• life insurance reached 1.52 billion lei, 30% more than in the same period of the
previous year.
• Romanian insurance market is still dominated by general/non-life insurance -
mainly motor vehicle insurance - unlike the European insurance market,
which is dominated by the life insurance segment.
• Increase of the life insurance segment, according to data reported by the
insurance companies. In Romania it accounted for only about 21% of the
gross written premiums.
 DISTRIBUTION DYNAMICS BY INSURANCE
SEGMENTS DURING THE PERIOD 2013/2017
 MARKET TRENDS 2017
• From the geographical distribution of underwritings, both non-life insurance
and life insurance contracts have the most important aggregate value in
Bucharest and Ilfov, followed at a significant distance by North-West and
Centre regions.
• The discrepancy between Bucharest and Ilfov region and the other regions
of the country is more pronounced in respect of life insurance.
 GPW
DISTRIBUTION
FOR NON-LIFE
INSURANCE IN
THE 8
DEVELOPMENT
REGIONS IN
ROMANIA
 GPW
DISTRIBUTION
FOR LIFE
INSURANCE IN
THE 8
DEVELOPMENT
REGIONS IN
ROMANIA
 MARKET TRENDS 2017
• High concentration - 88% of the total gross written premiums were made by
10 insurance companies out of the 31 companies carrying out insurance /
reinsurance activities on 30 September 2017.
COMPANIES WITH THE HIGHEST VOLUMES OF GROSS WRITTEN PREMIUMS
TOTAL MARKET: NON-LIFE AND LIFE INSURANCE
 A3 -
insurance of
land
vehicles
other than C3 - life
railway insurance and
annuities
related to funds
investment

A10 – MTPL

A8 - fire and
natural disaster C1 - Life
for goods other insurance,
than those annuities and
provided in supplementary
classes A3 - A7 life insurance
 GENERAL/NON-LIFE INSURANCE MARKET 2017
• During the first half of 2017, the total volume of gross premiums written for non-
life insurance was Lei 3,972,468,844, recording a growth by 2% as compared to
the first half of the previous year.
• The top 10 insurance companies to have underwritten premiums relating to
non-life insurance amounted to a cumulated value of Lei 3,835,511,546, i.e. 97%
of the total line of business.
• Of the total gross premiums written for non-life insurance, the largest shares are
held by classes:
• A10: Motor third party liability for use of land vehicles
• A3 Land vehicles, exclusively railway rolling stock
• A8 Insurance against fire and other natural disasters (for other assets than those
which can be insured via classes A3-A7).
RANKING OF INSURANCE COMPANIES ACCORDING TO THE GROSS PREMIUMS
WRITTEN FOR NON-LIFE INSURANCE DURING THE FIRST HALF OF 2017
 THE MTPL MARKET 2017
• Still the most important insurance class for the Romanian Insurance Market.
Unfortunately!
• A significant concentration was noticed in the first half of 2017, i.e. the first two
insurers totaled 58% (compared to 38% in 2016) of the total gross written
premiums pertaining to MTPL insurance in Romania.
• MTPL (compulsory motor insurance) in the first nine months of 2017 reached
2.86 billion lei. The remainder of 94.93 million lei, up to the total of 2.96 billion lei
for the category, was the carrier's insurance for goods transported as a carrier
and RCA insurances subscribed on the territory of other EU Member States
under the right of free provision of services.
• Licensed in 2017 by A.S.F. for MTPL activities: Allianz-Ţiriac, Asirom VIG, City
Insurance, Euroins România, Generali, Grawe, Groupama, Omniasig VIG and
Uniqa.
MARKET SHARE PERTAINING TO MTPL INSURANCE
DURING THE FIRST SEMESTER OF 2017
THE EVOLUTION OF MARKET SHARES REGISTERED BY MTPL INSURANCE 2012- S1 2017
 LIFE INSURANCE MARKET 2017
• The gross premiums written by insurance companies with respect to life
insurance recorded an increase by 36% during the first half of 2017, as
compared to the same period of last year.
• A high concentration level was maintained in 2017 too, so 10 companies held a
share of 95% of the volume of total premiums written in this segment, with total
underwritings amounting to Lei 1,021,860,314.
• Of the total gross written premiums for life insurance (1.52 billion lei), the highest
shares are held by the:
• C1 class: Life insurance, annuities and supplementary life insurance and
• C3 class: life insurance and annuities related to funds investment
which together accumulate 96% of the total GWP for life assurance.
RANKING OF INSURANCE COMPANIES ACCORDING TO THE GROSS PREMIUMS
WRITTEN FOR LIFE INSURANCE DURING THE FIRST HALF OF 2017
 INSURANCE CONTRACTS 2017 / Q1-Q3

• 14,066,477 insurance contracts in force at the end of the first nine months of
2017 at the level of the entire Romanian insurance market
• up by 15% compared to the same period of the previous year.
• The number of insurance contracts in force at the end of the third quarter of
2017 for non-life insurance represents 88% of the total number of contracts.
 GROSS PAID INDEMNITIES 2017 / Q1-Q3
• A total of 3.07 billion lei, cumulated for the two categories of insurance
(excluding partial and total maturities and redemptions)
• 2.95 billion lei - related to non-life insurance contracts (96%), registering an
increase of 12% compared to the similar period of 2016;
• 115.1 million lei are amounts paid for life insurance gross claims, registering
an increase of 3% compared to the similar period of 2016.
• The gross indemnities related to life insurance are supplemented by partial or
total maturities and redemptions, amounting to 662.52 million lei, an increase
of 69% compared to the same period of the previous year.
 GROSS PAID INDEMNITIES 2017

• The damages pertaining to the insurance portfolio of the four companies

whose operating license was withdrawn: Astra (in 2015), Carpatica, Forte
and LIG (in 2016), were taken over by the Policyholder Guarantee Fund,
which is to make payments under the limit of the ceiling of Lei 450,000 lei per
insurance creditor.
• The Policyholders Guarantee Fund has, during the first half of 2017, awarded
damages amounting to Lei 90.1 million, further to Astra and Carpatica
insurance companies going bankrupt; about 87% was paid for MTPL claims,
and the damage reserve employed on 30 June 2017 amounts to Lei 640.6
million, 75% out of which is the damage reserve employed for MTPL
insurance.
INSURANCE COMPANIES HAVING REPORTED THE HIGHEST VOLUME
OF GROSS CLAIMS PAID FOR NON-LIFE INSURANCE 2017/Q1-Q2
 INSURANCE COMPANIES TO HAVE REPORTED THE HIGHEST VOLUME OF
GROSS CLAIMS PAID, MATURITIES AND REDEMPTIONS IN LIFE INSURANCE
2017/Q1-Q2
 SOLVENCY II 2017 / Q1-Q3
• Under Solvency II, capital requirements for insurance companies are higher,
being effectively based on the risks undertaken by them (both from the
investment and underwriting point of view).
• The own funds eligible to cover the Solvency Capital Requirement amounted
at the end of the third quarter of 2017 to 5.03 billion lei, up by 8% compared to
the end of the third quarter of 2016.
• The coverage ratios of the SCR (Solvency Capital Requirement) and the MCR
(Minimum Capital Requirement) at market level, calculated as the weighted
average of the coverage ratio of the individual SCRs / MCRs of the insurance
companies, amounted at the end of the third quarter of 2017 to 1.78 and 4
respectively, which denotes the financial soundness of insurers.
 BRANCHES 2017 / Q1-Q3

• Companies with headquarters in another EU Member State are carrying out

their activity in the Romanian market, based on European passport.
• They are authorized and supervised by the competent authorities in the state
of origin (e.g., in the second quarter of 2016, Metropolitan Life changed its
legal form from insurance company into branch)
• In the first nine months of 2017, the branches cumulated gross written
premiums amounting to 549 million lei, up by 13% compared to the same
period of the previous year.
• On September 30, 2017, 11 branches were active in the insurance market,
out of which 8 carried out non-life insurance and 3 life insurance activities.
 INSURANCE BROKERS 2017 / Q1-Q3
• 4.62 billion lei is the value of the premiums for general and life insurance, a
nominal increase compared to the same period of 2016 of 1.25%.
• Compared to the total volume of gross premiums written by insurers for the
two categories of insurance, the premiums brokered by agents represent
63.2%, down by 3.17% compared to the same period of the previous year.
 TOP 10 INSURANCE AND/ OR REINSURANCE BROKERS
- DEPENDING ON THE AMOUNT OF MEDIATED PREMIUMS DURING THE FIRST HALF OF 2017
 MAIN 10 INSURANCE
AND/OR REINSURANCE
UNDERTAKINGS FOR
WHICH INSURANCE
AND/ OR REINSURANCE
BROKERS MEDIATED
INSURANCE PREMIUMS
DURING THE FIRST HALF
OF 2017
 PRIMARY LEGISLATION
• Law no. 136/1995 on insurance and reinsurance in Romania
• Law no. 32/2000 on the activity and supervision of insurance and reinsurance
intermediaries - consolidated version
• Law no. 503/2004 on the financial recovery and bankruptcy of insurance undertakings
• Law no. 260/2008 on compulsory home insurance against earthquakes, landslides and
floods
• Law no. 213/2015 on Policyholder Guarantee Fund
• Law no. 237/2015 on the authorisation and supervision of the business of insurance
and reinsurance
• Law no. 246/ 2015 on the insurers’ recovery and resolution
• Emergency Ordinance no. 54/2016 on compulsory motor liability insurance for
damages caused to third parties by motor vehicle accidents and trams
• Law no. 132 / 2017 on the compulsory insurance against civil liability for the damage
to third parties caused by vehicle and tram accidents
THANK YOU!