Romanian Insurance Market Overview

Septembrie 2008

CODRUŢ PASCU - Managing Partner ROLAND BERGER STRATEGY CONSULTANTS

Compared to Western Europe or even emerging CEE, the Romanian insurance market is still under-developed. The low level of insurance penetration and the high growth rates it has been enjoying for years nevertheless highlight its immense potential. In the last two years especially, this market has drawn several European insurance giants and is considered one of the most attractive in CEE.

 

Market development

Insurance gross written premiums have been growing on average by 29% per year, in the period 2002-2007, and reached a penetration level of 1.8% of GDP last year, from 1.3% in 2002.

The level of gross written premiums was EUR 2.1 bn in 2007, an increase of 32% as compared to the 2006 level of EUR 1.6 bn. The market is clearly dominated by the non-life segment, which accounted for almost 80% of total premium (EUR 1.7 bn) in 2007; the non-life segment has registered a CAGR (compound annual growth rate) of 30% between 2002 and 2007.

The life insurance segment grew by an average annual rate of 25% in the same time span, reaching EUR 421 mn in 2007. The year-on-year increase for 2007 was nearly 34%.

The insurance penetration rate (share of gross written premiums in GDP) of 1.8% in 2007 (1.7% in 2006) and the insurance density (premiums per capita) of less than EUR 100 are considerably below the level of other CEE countries. Insurance premiums per capita in Romania, for instance, are merely one third of the value in Slovakia, Poland or Hungary.

These discrepancies reveal solid growth potential for the local insurance market.

 

Product portfolio

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