Coman, ING: Life Insurance, Still “Exotic Realm” For Romanians

05.25.2011 By Tudor Ioana Raluca

Life insurance is an “exotic realm” for Romanians due to their low income and job insecurity, although people realize the importance of this type of insurance and of saving money for retirement, insurer ING Asigurari de Viata general manager Cornelia Coman said Wednesday.

When it comes to signing a life insurance contract Romanians are dissuaded by the amount of money available to pay contributions, considering salaries are lower and inflation is high, said Coman, adding that job insecurity is another reason for their hesitation.

Nonetheless, an ING research reveals that over 90% of Romanians want to improve their financial power and 40% of respondents feel they need help in this respect, said Coman during an economic seminar.

ING Asigurari de Viata is leader on the local life insurance market.

The Romanian general and life insurance market dropped 6.4% in 2010, to 8.31 billion lei (about EUR2 billion).

On the general insurance segment, underwritten premiums decreased by 8.31%, to RON6.64 billion, while life insurance underwritten premiums increased by 2.3% to RON1.67 billion. (EUR1=RON4.1290)