UNSAR: Romanian Life Insurance Market Seen Up 5% This Year

04.28.2011 By Gavrila Oana

Romania’s life insurance market could grow as much as 5% this year, after a 2.3% increase in 2010, as insurers join efforts to educate clients and create new products and services adapted to economic realities, Thursday said Cornelia Coman, vice-president of the Romanian insurers association UNSAR.

Romania's life insurance market could grow as much as 5% this year, after a 2.3% increase in 2010, as insurers join efforts to educate clients and create new products and services adapted to the new economic realities, Thursday said Cornelia Coman, vice-president of the Romanian insurers association UNSAR.

"Under the UNSAR umbrella, insurers join efforts to inform and educate clients given the new market realities and expectations," said Coman during an insurance seminar, adding she expects the life insurance market to grow 5% this year.

According to data from the insurance watchdog CSA, the Romanian insurance market declined 5.7% in 2010, to 8.36 billion lei (EUR2.05 billion), as the general insurance segment declined 7.5%, to RON6.69 billion and the life insurance segment grew 2.3%, to RON1.67 billion.

The top three life insurers in Romania are ING Asigurari de Viata, BCR Asigurari de Viata and Alico Romania.

Coman, who is also the head of ING Asigurari de Viata, said few Romanians are financially protected or save money using life insurance policies.

"Romania has one of the lowest penetration rates for life insurance in Europe, of just 0.3% of gross domestic product. Also, only one third of Romanians have life insurance, compared to a global average of 54%," she said.

UNSAR was founded in 1994 and currently has 23 members who make up 95% of the local insurance market. (EUR1=RON4.076)