Transcript 10 ani de activitate UNSAR

Romanian Life Insurance Market
Trends for 2008
Bram Boon
Head of Life Insurance Working Group, UNSAR
February 11th 2007
CFA Forecast Dinner Bucharest
Last Year in Numbers
42 Insurance Companies registered by the Insurance
Supervisory Commission (end of 2007)

23 Ins. Co. members of UNSAR (~ 95% of the market)
~ 400 Romanian Insurance Brokers
Foreign capital of the Insurance Companies ~ 90% (big
international players)
Total GWP ~ 2 Billion Euro (estimation for 2007)

Non-life insurance ~ 81%
 motor insurance more than 50% from total GWP & increasing the loss ratio

Life insurance ~ 19%
Penetration % GDP ~ 1.75 %
Insurance density ~ 92 Euro/capita
The Life Insurance Market Marked by the Launch
of the Pension System
Substantial differentiation of product range as
result of private pension launch
Life insurance market reported a good increase,
but nevertheless under the evolution of non-life
market
First year of the EU accession: 10 companies
notified CSA of their intention to conduct life
insurance activities in Romania, based on the
free circulation of services
Life Insurance Market Consolidation in 2007
In 2007 it became more clear the consolidation of the life
insurance market

4 important acquisitions took place:
 Vienna Insurance Group acquired 98.5% of Asirom
 Groupama acquired BT Asigurari
 PPF Investments acquired Ardaf and RAI Asigurari
 Uniqa took control of the majority share capital from Astra
Life percentage in total insurance market decreased from 23% in
2005 to 19% in 2007
The life insurance market registered a growth below the growth
pace of the non-life insurance => life insurance was sold with less
effort, but focus was on P2
Competition increased; lower differences in market share between
competitors as all life insurance companies took advantage of the
Pension reform
General Trends for Life Insurance in 2008
Demand for life insurance will be fuelled by



Economic performance and capital inflow
EU accession impact
Changes in the legal, social and corporate sphere: begin of
development of the employee benefits market
Gradually evolution from consumption driven society to
savings oriented


Life insurance to reach close to 3 billion lei by the end of 2010
Life insurance share on the insurance market to reach 25% by
2010
2008 – The Year of Life Insurance and Voluntary
Pensions
2008 will be the year of the Voluntary
Pensions and Life Insurance



Growth in income and development of middle
class
Beginning of transfer of social responsibility in
the private sector: private pensions, health
system, education
Private pensions to increase awareness on life
insurance
Next step: retirement services
Traditional
Unit
life
linked
Pension
funds
Mutual
Term
Single
funds
life
premium
Romania
Global life and pension assets growth
2002-2015
Benefits of the Multi-pillar System
Helps individuals to become self-reliant
in old age
Reduces financial liability for
governments
Relieves financial obligations for younger
generations
Shifts responsibility from the state to
employers and employees
Acceleration of economic growth
Boost of the local capital market
70
USD trillion
10
6
Inflow
workers
Outflow
retired
60
3
57
Growth
due to
extra
funding
Assets
2015
28
50
40
30
22
20
10
0
Assets
2002
Regular
asset
growth
Source: BCG Research & ING
Customer Trends for 2008
Increase education and awareness
Change of mentality as result of increasing level of debt amounts
Exodus of the workforce to put pressure on the social system and
determine people to become more responsible for financial planning
People will learn not to rely anymore on the moral and financial
support of their families
Parents more open-minded and willing to invest in the future of their
children
Thank you!