evolution of the insurance market in the 1st quarter of 2016

Transcription

EVOLUTION OF THE INSURANCE MARKET
IN THE 1ST QUARTER OF 2016
1
TABLE OF CONTENTS
EVOLUTION OF THE INSURANCE MARKET IN Q1 2016................................................................ 3
I. INSURANCE COMPANIES........................................................................................................ 3
I.1. Gross premiums written (GI and LI) .............................................................................................. 3
Gross premiums written for general insurance .............................................................................. 8
Gross premiums written for life insurance ................................................................................... 10
I.2. Gross claims paid by insurers (GCP) ............................................................................................ 12
Gross claims paid related to general insurance ............................................................................ 13
Situation of amounts paid for gross claims, maturities and redemptions related to life insurance
...................................................................................................................................................... 16
I.3. Claims and expense ratio ............................................................................................................ 17
I.4. Technical reserves ....................................................................................................................... 19
Technical reserves established for general insurance .................................................................. 20
Technical reserves established for life insurance ......................................................................... 20
I.6. Liquidity of insurance companies ............................................................................................... 21
I.7. Reinsurance................................................................................................................................. 22
For the general insurance category .............................................................................................. 22
For the life insurance category ..................................................................................................... 23
I.8. Statistical data under the new solvency regime ......................................................................... 24
I.9. The evolution of the motor vehicle liability insurance market (MTPL) in 2016 ......................... 29
Market share ................................................................................................................................. 32
Evolution of damages.................................................................................................................... 34
Monitoring of MTPL insurance premiums for vans and passenger vehicles January - June 201640
I.10. Home insurance ........................................................................................................................ 43
II. INSURANCE AND/OR REINSURANCE BROKERS..................................................................... 47
II.1. Insurance intermediation business ............................................................................................ 47
II.2. Revenues obtained from the insurance intermediation business ............................................. 50
List of figures ..................................................................................................................................... 52
List of tables ...................................................................................................................................... 53
2
THE INSURANCE MARKET
The insurance market in Romania last year reversed the downward trend from the period 2013 - 2014
and ended 2015 with a volume of gross premiums written of RON 8.75 billion, up 8.2% compared to
the previous year. This trend continued in the first quarter of 2016, insurers accumulating in the first
quarter of 2016 gross premiums written of RON 2,430,297,723, up 9.16% over the same period last
year.
The positive development in 2016 was influenced by the contribution of general insurance segment,
which recorded an increase of 9.74% over the same period last year, while the life insurance
segment registered a growth of 6.61%.
The insurance sector remains dependent on auto insurance, gross premiums written for class A3
(Insurance of land vehicles other than railway) and class A10 (Motor vehicle liability insurance)
representing 76.34% of total gross premiums written related to the general insurance category in Q1
2016, increasing compared to the same period last year. The underwritings for the two classes of
general insurance increased in 2016, particularly for Class A10, which registered an advance of about
27% over the same period last year.
This report is based on the accounting reports submitted by insurance companies, except the
chapter on the transition to Solvency II, which is based on the reports submitted by insurance
companies falling under this regime.
I. INSURANCE COMPANIES
On 31 March 2016 there were active in the insurance market 35 insurance companies of which 20
have only practiced general insurance activity ("GI"), 8 practiced only life insurance activity ("LI") and
7 practiced composite activity.
In January 2016 the Board of the Financial Supervisory Authority (ASF) decided to apply the
measures of resolution in the case of Carpatica Asig S.A. On 27 July 2016 ASF decided to withdraw
the authorization of Carpatica Asig and trigger the bankruptcy proceedings. This does not affect data
on 31 March 2016, which include the accounting reports of Carpatica Asig.
I.1. Gross premiums written (GI and LI)
Insurers have accumulated in the first quarter (Q1) of 2016 gross premiums written worth RON
2,430,297,723, up 9.16% compared to Q1 2015:
- gross premiums written (GPW) related to general insurance (GI) amounting to RON 1,992,030,603,
up compared to first quarter of the previous year by 9.74%;
- gross premiums written related to life insurance (LI) amounting to RON 438,267,120, up compared
to the similar period of the previous year by 6.61%.
3
mil. lei
Figure 1 The evolution of gross premiums written in 2012 – 2016
3.000
2.500
438
2.000
432
420
382
411
AV
1.500
AG
1.000
1.734
1.707
1.699
1.815
TI 2012
T1 2013
TI 2014
T1 2015
1.992
500
0
T1 2016
Unlike the European insurance market, which is dominated by life insurance segment (about 61%
according to Insurance Europe1 for 2014), in Romania it accounted for only about 18% of gross
premiums written, the market being dominated by life insurance or auto insurance.
Table 1 Dynamics of allocation on insurance segments during 2012 - 2016
GI
Q1 2012
1,733,727,436
Q1 2013
1,707,087,760
Q1 2014
1,698,546,602
Q1 2015
1,815,170,223
Q1 2016
1,992,030,603
LI
431,871,167
419,662,147
382,283,829
411,103,369
438,267,120
2,165,598,603
2,126,749,907
2,080,830,431
2,226,273,592
2,430,297,723
GI Share (%)
80.06%
80.27%
81.63%
81.53%
81.97%
LI Share (%)
19.94%
19.73%
18.37%
18.47%
18.03%
TOTAL
Table 2 Dynamics of gross premiums written on insurance classes in the period 2012 - 2016
Category
GI
1
Insurance
Class
A1
A2
A3
A4
A5
A6
A7
A8
A9
Q1 2012
17,598,444
16,653,951
453,490,765
434,819
1,909,677
4,558,213
13,980,833
260,211,348
25,533,510
Q1 2013
47,916,906
20,310,848
422,824,877
610,781
2,998,097
8,158,378
10,950,591
270,104,694
24,399,973
GPW (RON)
Q1 2014
23,478,583
11,176,085
432,850,965
267,493
1,595,751
8,644,513
10,380,251
248,561,260
25,880,842
Q1 2015
31,617,673
13,695,281
401,837,072
939,988
3,355,232
11,815,498
10,074,131
262,123,350
27,369,201
Q1 2016
19,798,605
18,516,038
404,817,878
1,048,271
6,136,720
5,729,841
10,485,193
250,904,550
25,158,719
www.insuranceeurope.eu
4
Category
LI
Insurance
Class
A10
A11
A12
A13
A14
A15
A16
A17
A18
TOTAL
C1
C2
C3
C4
C5
C6
C7
A1
A2
TOTAL
Q1 2012
618,068,014
2,687,389
3,511,232
216,814,889
25,494,747
55,802,277
4,255,019
61,886
12,660,421
1,733,727,436
257,057,991
412,568
156,342,701
711,699
7,585,761
9,760,447
431,871,167
Q1 2013
676,508,834
2,624,215
4,477,237
131,332,757
10,228,243
54,779,055
5,352,773
5,317
13,504,184
1,707,087,760
271,624,314
363,620
134,459,348
681,820
8,019,100
4,513,945
419,662,147
TOTAL
2,165,598,603
2,126,749,907
GPW (RON)
Q1 2014
738,580,212
3,277,724
3,282,501
130,029,952
7,037,615
30,686,067
6,964,619
4,425
15,847,744
1,698,546,602
254,835,232
310,210
112,103,245
918,253
8,461,688
5,655,201
382,283,829
Q1 2015
879,117,632
2,865,581
3,606,202
102,735,588
1,382,938
35,847,303
8,586,255
59,310
18,141,988
1,815,170,223
265,637,618
296,242
127,641,991
688,187
8,520,286
8,319,045
411,103,369
Q1 2016
1,115,884,713
1,801,112
1,124,443
71,856,285
1,701,061
33,858,814
4,689,089
6,920
18,512,351
1,992,030,603
298,911,233
261,014
116,446,901
0
0
0
0
11,295,280
11,352,692
438,267,120
2,080,830,431
2,226,273,592
2,430,297,723
Regarding geographical distribution of underwritings, it is noticed that in the case of both general
insurance and life insurance, contracts with the most important aggregate value are concluded in
Bucharest and Ilfov, followed at a significant distance by North-West and Center regions. In the case
of life insurance, the discrepancy between the region of Bucharest and Ilfov and other regions of the
country is much more pronounced.
5
Figure 2 GPW distribution for general insurance in the 8 regions of development of Romania
7.94%
12.18%
9.61%
6.26%
8.11%
5.30%
9.42%
41.17%
Figure 3 GPW distribution for life insurance in the 8 regions of development of Romania
2.98%
2.54%
3.18%
2.66%
2.84%
1.87%
1.77%
82.16%
6
The insurance market in Romania is characterized by a high degree of concentration. In 2015, 79.25%
of the total volume of gross premiums written was covered by 10 insurance companies out of 35
companies that carried out on 31 December 2015 insurance/reinsurance activity, situation similar to
previous years and the first quarter of 2016.
Table 3 The companies with the largest volumes of gross premiums written and their share in total market
(general and life insurance)
No.
Company
ASIROM VIENNA INSURANCE GROUP
ALLIANZ - TIRIAC ASIGURARI
OMNIASIG VIG
CARPATICA ASIG
EUROINS ROMANIA ASIGURARE REASIGURARE
Total (1-5)
6 GROUPAMA ASIGURARI
7 CITY INSURANCE
8 NN ASIGURARI DE VIATA
9 GENERALI ROMANIA ASIGURARE REASIGURARE
10 UNIQA ASIGURARI
Total (1-10)
Other companies
TOTAL
1
2
3
4
5
Total premiums written
Total market
share (%)
(RON)
374,771,392
297,247,063
225,736,834
224,679,657
209,586,753
1,332,021,699
199,842,136
165,297,552
157,431,265
131,100,249
115,413,610
2,101,106,511
329,191,212
2,430,297,723
15.42
12.23
9.29
9.25
8.62
54.81
8.22
6.80
6.48
5.39
4.75
86.45
13.55
100.00
7
Gross premiums written for general insurance
The total volume of gross premiums written for general insurance, in Q1 2016, was RON 1,992,030,603,
recording a growth of 9.74% compared to the same period of the previous year.
The top 10 insurance companies that underwrote general insurance premiums accumulated a value
of RON 1,897,813,206, which accounts for 95.27% of this business segment.
Table 4 Ranking of insurance companies based on gross premiums written for general insurance in the first
quarter of 2016
No.
Company
ASIROM VIENNA INSURANCE GROUP S.A.
ALLIANZ - TIRIAC ASIGURARI S.A.
OMNIASIG VIG (former BCR ASIGURARI VIG)
CARPATICA ASIG S.A.
EUROINS ROMANIA ASIGURARE REASIGURARE S.A.
Total (1-5)
6 GROUPAMA ASIGURARI S.A.
7 CITY INSURANCE S.A.
8 UNIQA ASIGURARI S.A.
9 GENERALI ROMANIA ASIGURARE REASIGURARE S.A.
10 P.A.I.D. INSURANCE POOL
Total (1-10)
Other companies
TOTAL
1
2
3
4
5
Total premiums written
Total market
share (%)
(RON)
345,217,678
270,238,907
225,736,834
224,679,657
209,586,753
1,275,459,829
189,354,781
165,297,552
115,413,610
112,033,416
40,254,018
1,897,813,206
94,217,397
1,992,030,603
17.33
13.57
11.33
11.28
10.52
64.03
9.51
8.30
5.79
5.62
2.02
95.27
4.73
100.00
Of the total gross premiums written for general insurance, the largest shares are held by classes A3
Insurance of land vehicles other than railway, A8 Insurance against fire and other natural disasters
and A10 Motor vehicle liability insurance, the share of these three classes being 88.95% of total
gross premiums written for the general insurance activity:
 Class A10. Motor vehicle liability insurance (MTPL + CLI), with a volume of gross premiums
written of RON 1,115,884,713, accounting for 56.02% of total underwritings for general
insurance, recorded in the first quarter of 2016 an increase by 26.93% compared to the
same period of 2015;

Class A3. Insurance of land vehicles (CASCO), with a volume of gross premiums written of
RON 404,817,878, representing 20.32% of total general insurance, recorded in the analyzed
period a nominal growth of 0.74% compared to the same period of 2015;

Class A8. Insurance against fire and other natural disasters, with a volume of gross premiums
written of RON 250,904,550, accounting for 12.60% of total underwritings for general
insurance, recorded in the first quarter of 2016 a nominal growth of 4.28% compared to the
same period of 2015.
8
Table 5 Structure on general insurance classes
GPW (RON)
422,824,877
432,850,965
401,837,072
404,817,878
Percentage
change
2016/2015 (%)
20.32%
0.74
A8
270,104,694
248,561,260
262,123,350
250,904,550
12.60%
-4.28
A10
Other
classes
676,508,834
738,580,212
879,117,632
1,115,884,713
56.01%
26.93
278,554,165
272,092,169
220,423,462
11.07%
-18.99
1,698,546,602
1,815,170,223
1,992,030,603
100.00%
9.74
Class
A3
TOTAL
Q1 2013
Q1 2014
337,649,355
1,707,087,760
Q1 2015
Q1 2016
Share
2016
Figure 4 Evolution of the volume of gross premiums written on general insurance classes (million RON)
1200,0
1.116
1000,0
879
800,0
739
677
600,0
433
423
400,0
270
405
402
338
279
249
262
272
251
220
200,0
T1 2013
T1 2014
T1 2015
T1 2016
PBS (lei)
A3
A8
A10
Alte clase
In dynamics it is noticed that in the last 4 years the share of gross premiums written for class X has
grown consistently from year to year, to the detriment of other important classes of general
insurance, which shows that the dependence of the overall market on MTPL insurance has increased
(MTPL risk being predominantly in class X).
9
Figure 5 Structure dynamics on general insurance classes
100%
90%
19,789%
16,412%
14,986%
11,044%
39,637%
43,471%
48,430%
56,024%
15,808%
14,647%
80%
70%
60%
50%
40%
30%
14,435%
12,600%
20%
10%
24,766%
25,471%
22,149%
20,331%
T1 2013
T1 2014
T1 2015
T1 2016
0%
A3
A8
A10
Alte clase
Gross premiums written for life insurance
The life insurance segment recorded an increase by 6.61% in the first quarter of 2016 compared to
the same period of the last year.
Also, a high degree of concentration was maintained in 2016, so 10 companies held a share of
92.63% of the total volume of premiums written in this segment, with total underwritings of RON
438,267,120.
Table 6 Ranking of insurance companies based on gross premiums written for life insurance in 2016
No.
Company
1 NN ASIGURARI DE VIATA SA
2 METROPOLTAN
TOTAL (1-2)
3 BCR ASIGURARI DE VIATA VIENNA INSURANCE GROUP S.A.
4 ASIROM VIENNA INSURANCE GROUP S.A.
5 ALLIANZ - TIRIAC ASIGURARI S.A.
6 BRD ASIGURARI DE VIATA S.A.
7 GENERALI ROMANIA ASIGURARE REASIGURARE S.A.
8 ERGO ASIGURARI DE VIATA S.A.
9 UNIQA ASIGURARI DE VIATA SA
10 GRAWE ROMANIA ASIGURARE S.A.
TOTAL (1-10)
Other companies*)
TOTAL
GPW LI (RON)
157,431,265
62,910,173
220,341,438
43,628,529
29,553,714
27,008,156
25,431,957
19,066,833
17,344,173
12,595,968
11,005,845
405,976,613
32,290,507
438,267,120
Market share
(%)
35.92
14.36
50.28
9.96
6.74
6.16
5.80
4.35
3.96
2.87
2.51
92.63
7.37
100.00
10
Of total gross premiums written for life insurance, the highest shares are held by classes C1 life
insurance, annuities and supplemental life insurance and, respectively, C3 Life insurance and
annuities related to investment funds, which together accumulate 94.77% of total gross premiums
written for the life insurance business.
Figure 6 Structure dynamics on life insurance classes
100%
3,236%
4,014%
4,336%
5,227%
32,040%
29,325%
31,049%
26,570%
64,725%
66,661%
64,616%
68,203%
T1 2013
T1 2014
T1 2015
T1 2016
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
C1
C3
Alte clase
Dynamics analysis leads to the following conclusions:
- Class C1 “Life insurance, annuities and supplemental life insurance” increased in absolute size by
RON 33,273,615 in Q1 2016, respectively by 12.53% compared to the first quarter of 2015;
- Class C3 “Life insurance and annuities related to investment funds” increased in absolute size by
RON 11,195,090 in Q1 2016, respectively by 8.77% compared to the first quarter of 2015;
The category "other classes" had a growth pace of 28.53% compared to Q1 2015, which, in absolute
size, mean an increase in the volume of gross premiums written by RON 5,085,226. This category
mainly includes the following classes:
o class A1 Accidents with gross premiums written of RON 11,295,280, up 32.57%
compared to the first quarter of 2015;
o
class A2 Health insurance with gross premiums written of RON 11,352,692, up
19.36% compared to the first quarter of 2015;
11
Table 7 Structure on life insurance classes
GPW life (RON)
Class
C1
C3
Other classes
TOTAL
Q1 2013
Q1 2014
Q1 2015
271,624,314
134,459,348
13,578,485
419,662,147
254,835,232
112,103,245
15,345,352
382,283,829
Q1 2016
265,637,618
127,641,991
17,823,760
411,103,369
Class share in
Q1 2016
298,911,233
116,446,901
22,908,986
438,267,120
68.20%
26.57%
5.23%
100.00%
Pace of
change
(%)
12.53%
-8.77%
28.53%
6.61%
Figure 7 Evolution of the volume of gross premiums written on life insurance classes (million RON)
350
299
300
272
266
255
250
200
150
134
128
112
116
100
50
23
18
15
14
0
T1 2013
T1 2014
T1 2015
T1 2016
PBS (lei)
C1
C3
Alte clase
I.2. Gross claims paid by insurers (GCP)
At the end of the first quarter of 2016, insurance companies reported gross claims paid (excluding
partial and total maturities and redemptions), aggregate for the two insurance categories,
amounting to RON 955,798,493, as follows:
- RON 913,410,298 related to general insurance contracts (95.57%), down 12.59% compared
to the similar period of 2015 (RON 1,044,934,928);
- RON 42,388,195 are amounts paid for gross claims, related to life insurance, down 2.97%
compared to the similar period of 2015 (RON 43,685,843).
Gross claims for life insurance are added to partial or total maturities and redemptions worth a total
of RON 185,984,741, value increasing by 2.65% compared to the same period of the previous year.
Gross claims paid by insurers in the general insurance segment fell in the first quarter of 2016 mainly
due to bankruptcy in the second half of 2015 of Astra, one of the most important players in the
general insurance market. Astra paid in Q1 2015 gross claims of RON 127,306,850. In 2016, the
Policyholders Guarantee Fund paid damages related to insurance contracts of the company in force
12
at the time of bankruptcy. Eliminating Astra's impact, gross claims paid by insurers in the general
insurance segment remained approximately constant (down 0.46%).
mil. lei
Figure 8 The evolution of the gross claims paid including maturities and redemptions for general and life
insurance (million RON)
1.400
175
1.200
196
183
181
186
1.000
800
600
1.091
1.109
1.135
1.045
913
400
200
0
TI 2012
TI 2013
TI 2014
TI 2015
TI 2016
Indemnizații brute plătite pentru asigurări de viata, Maturitati, Rascumparari totale si partiale (lei)
Indemnizații brute plătite pentru asigurări generale (lei)
Table 8 The dynamics of the gross claims paid, including maturities and redemptions for general and life
insurance, during 2012-2016
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
GI + LI (RON)
1,265,310,041
1,304,686,631
1,317,736,628
1,226,117,960
1,099,395,039
Pace of change
compared to the
previous period (%)
3.11%
1.00%
-6.95%
-10.34%
GCP GI (RON)
1,090,692,799
1,108,771,758
1,134,608,598
1,044,934,928
913,410,298
Pace of change
compared to the
previous period (%)
1.66%
2.33%
-7.90%
-12.59%
GCP LI, Maturities,
Pace of change
Total and partial
compared to the
redemptions (RON) previous period (%)
174,617,242
195,914,873
12.20%
183,128,030
-6.53%
181,183,032
-1.06%
185,984,741
2.65%
Gross claims paid related to general insurance
Of total gross claims paid in Q1 2016 for general insurance, the value related to damages in previous
years was RON 747,467,789, representing 81.83% of the total (84.70% in the same period last year).
This share decreases towards the end of the year, as claim files are instrumented and liquidated for
damages happened in the current year.
In total, gross claims paid by 10 insurance companies accounted for 97.63% of total claims paid at
the level of the general insurance segment.
13
Table 9 Insurance companies with the largest volume of gross claims paid for general insurance
No.
Company
1
OMNIASIG VIG
2
CARPATICA ASIG
3
EUROINS ROMANIA ASIGURARE REASIGURARE
4
ALLIANZ - TIRIAC ASIGURĂRI
TOTAL (1-4)
5
GROUPAMA ASIGURARI
6
ASIROM VIENNA INSURANCE GROUP
7
CITY INSURANCE
8
UNIQA ASIGURARI
9
GENERALI ROMANIA
10
GOTHAER ASIGURARI - REASIGURARI
TOTAL (1-10)
Other companies
TOTAL
GCP GI (RON) Market share (%)
144,894,850
15.86
126,048,279
13.80
120,376,078
13.18
107,526,969
11.77
498,846,176
54.61
105,180,881
11.52
92,083,638
10.08
69,555,876
7.62
66,491,843
7.28
51,274,363
5.61
8,341,462
0.91
891,774,239
97.63
21,636,059
2.37
913,410,298
100.00
Significant shares of gross claims paid by insurance companies were recorded in the following
insurance classes (94.38% of the total):
- Class A10. Motor vehicle liability insurance with a volume of gross claims paid of RON 521,550,867,
accounting for 57.10% of total gross claims paid for general insurance, decreasing by 12.51%
- Class A3. Land vehicles insurance (Casco), with a volume of gross claims paid of RON 299,076,137,
accounting for 32.74% of total gross claims paid for general insurance, decreasing by 8.16%
- Class A8. Insurance against fire and other natural disasters, with a volume of gross claims paid of
RON 41,421,117, accounting for 4.54% of total gross claims paid for general insurance, decreasing by
14.06% compared to the first quarter of 2015.
Gross claims paid for the other classes account for 5.62% of total payments related to general
insurance, which in absolute size meant an amount of RON 51,362,177.
14
Figure 9 Structure dynamics on classes of gross claims paid for the general insurance category
100%
5,779%
7,186%
5,623%
57,038%
57,099%
4,613%
4,535%
33,620%
31,163%
32,743%
T1 2014
T1 2015
T1 2016
14,373%
90%
80%
46,186%
70%
47,121%
60%
50%
4,589%
40%
4,886%
30%
43,446%
20%
10%
0%
T1 2013
A3
A8
A10
Alte clase
Figure 10 Evolution of the volume of GI gross claims paid (million RON)
700
596
600
535
522
500
400
381
326
299
300
200
100
163
55
48
75
41
51
0
TI 2014
TI 2015
A3
A8
A10
TI 2016
alte clase
15
Situation of amounts paid for gross claims, maturities and redemptions related to life
insurance
The value of gross claims, maturities and redemptions related to life insurance was, in Q1 2016, RON
185,984,741, recording a nominal growth of 2.65% over the same period last year.
Cumulative gross payments (indemnities, maturities and redemptions) of 10 insurance companies
accounted for 96.10% of total gross amounts paid at the level of the life insurance segment.
Table 10 Insurance companies with the largest amount of gross claims paid, maturities and redemptions for
life insurance
No.
Company
1
NN ASIGURARI DE VIATA SA
2
METROPOLITAN LIFE ASIGURARI S.A. (FORMER AVIVA ASIGURARI DE
VIATA S.A.)
TOTAL (1-2)
3
4
5
6
7
8
9
10
ALLIANZ - TIRIAC ASIGURARI S.A.
ASIROM VIENNA INSURANCE GROUP S.A.
BCR ASIGURARI DE VIATA VIENNA INSURANCE GROUP S.A.
GENERALI ROMANIA ASIGURARE REASIGURARE S.A.
GRAWE ROMANIA ASIGURARE S.A.
SIGNAL IDUNA ASIGURARE REASIGURARE S.A.
GROUPAMA ASIGURARI S.A.
ERGO ASIGURARI DE VIATA S.A.
TOTAL (1-10)
Other companies
TOTAL
GCP, Maturities, Total
Share in
redemptions, Partial
total
redemptions
77,723,293
41.79
29,551,773
15.89
107,275,066
18,097,993
15,635,345
11,787,626
9,647,041
5,092,631
4,245,173
3,531,974
3,412,844
178,725,693
7,259,048
185,984,741
57.68
9.73
8.41
6.34
5.19
2.74
2.28
1.90
1.83
96.10
3.90
100.00
In 2016, the most significant shares in gross claims paid were held by the following insurance classes:
-
class C1 Life insurance, annuities and supplemental life insurance, accounting for 63.20%
(RON 30,531,415) of total payments made (RON 31,945,808 in Q1 2015);
-
class C3 Life insurance and annuities related to investment funds, accounting for 10.34%
(RON 4,620,592) of the total (RON 3,597,425 in Q1 2015);
-
Payments for the other classes were in the amount of RON 7,236,188 and accounted for
14.42% of total payments related to life insurance (RON 8,172,610 in Q1 2015).
16
I.3. Claims and expense ratio
Figure 11 Quarterly evolution of claims ratio and combined claims ratio for the main general insurance
classes during 2014-2016 (Q1 of each year)
140
120
100
80
60
T1 2014
T1 2015
40
T1 2016
20
clasa A3
clasa A8
Rata combinata
Rata cheltuielilor
Rata daunei
Rata combinata
Rata cheltuielilor
Rata daunei
Rata combinata
Rata cheltuielilor
Rata daunei
0
clasa A10
In Q1 2016 the claims ratio combined at the level of the entire market improved for insurance
classes with significant share, continuing the trend of the previous year. For CASCO and MTPL+CLI
insurances, the combined claims ratio is for the first time around 100%. However, it is likely that this
situation is intermediary, given that an important factor of the claims ratio is the variation of
technical reserves for claims that happened but haven't been approved yet, which is estimated in
general annually. Consequently, the impact of this variation is not included entirely in analyzes for
the quarter depending on policies of establishing technical reserves related to each insurance
company.
For a more thorough analysis of the claims ratio, we included in the table below the quarterly ratios
calculated on aggregate data. It is noticed that in the last quarter of 2015, especially for the class
A10, the combined claims ratio had a significant growth compared to the quarterly values. It was
due to adjustments made on technical reserves, especially following the audit of the annual financial
statements.
17
Table 11 Quarterly evolution of claims ratio and combined claims ratio for the main general insurance
classes
Claims
ratio
Period
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
80.65
79.22
79.89
79.78
75.98
76.59
75.63
74.95
66.18
Class A3
Class A8
Class A10
The rate of
The rate of
The rate of
acquisition
acquisition
acquisition
Combined
Combined
Combined
and
Claims ratio
and
Claims ratio
and
claims ratio
claims ratio
claims ratio
administration
administration
administration
expenses
expenses
expenses
33.21
113.86
18.28
40.90
59.18
86.8
40.69
127.49
34.86
114.08
23.05
42.41
65.46
82.98
40.86
123.83
35.82
115.72
32.10
42.86
74.96
80.71
39.52
120.23
36.36
116.14
26.41
42.33
68.74
87.05
39.33
126.38
32.62
108.60
10.78
40.35
51.13
82.02
39.31
121.33
35.12
111.72
14.15
37.82
51.97
89.08
38.00
127.08
35.74
111.37
16.06
37.27
53.34
82.67
35.35
118.02
36.67
111.62
21.27
37.66
58.93
101.76
37.37
139.12
31.37
97.55
22.85
34.23
57.08
69.79
31.87
101.66
Table 12 Quarterly evolution of the value of acquisition and administration expenses and expenses with
commissions during 2014 - 2016 (first quarter)
Period
Indicator
acquisition and
administration expenses
of which expenses with
commissions
acquisition and
commissions
acquisition and
commissions
Q1 2014
Q1 2015
Q1 2016
class A3
154,622,705
class A8
101,053,843
class A10
250,774,764
53,928,457
52,342,366
127,570,192
140,607,612
97,773,962
283,104,986
49,909,060
52,282,828
143,950,388
133,523,005
81,011,155
268,679,448
42,508,018
32,652,031
157,722,786
Figure 12 Quarterly evolution of the value of acquisition and administration expenses and expenses with
commissions during 2014 - 2016 (first quarter)
300.000.000
250.000.000
200.000.000
150.000.000
100.000.000
50.000.000
0
cheltuieli de achizitie si din care cheltuieli cu cheltuieli de achizitie si din care cheltuieli cu cheltuieli de achizitie si din care cheltuieli cu
administrare
comisioanele
administrare
T1 2014
comisioanele
T1 2015
clasa A3
clasa A8
administrare
comisioanele
T1 2016
clasa A10
18
Table 13 Evolution of expenses with commissions in gross premiums written in the period 2014 - 2016 (first
quarter)
Period
Q1 2014
Q1 2015
Q1 2016
class A3 (%)
class A8 (%)
12.46
12.42
10.50
class A10 (%)
21.06
19.95
13.01
17.27
16.37
14.13
Figure 13 Evolution of expenses with commissions in gross premiums written
25,000
20,000
15,000
10,000
5,000
clasa A3
clasa A8
T1 2014
T1 2015
clasa A10
T1 2016
It is noticed that the share of expenses with commissions in gross premiums written fell following
the efforts of insurance companies to reduce the combined claims ratio and thus improve the
profitability and financial stability indicators.
The average at market level on all general insurance classes fell from 16.67% in Q1 2014 to 13.49%
in Q1 2016 (Q1/2015: 16.57%).
I.4. Technical reserves
On 31 March 2016, insurance companies had established gross technical reserves for the general
and life insurance business worth a total of RON 14,772,738,663, up compared to the end of 2015
(RON 14,477,264,812). Gross technical reserves established for general insurance recorded a volume
of RON 8,155,815,078 (31 December 2015: RON 7,867,467), thus holding a share of 55.21% of the
total. For life insurance, companies established reserves worth RON 6,616,923,585 (31 December
2015: RON 6,609,799,708), level related to a share of 44.79% of the total.
19
Technical reserves established for general insurance
For the general insurance business, on 31 March 2016, insurance companies had established gross
technical reserves worth RON 8,155,815,078, increasing compared to 31 December 2015, which can
also be correlated with the decrease in gross claims paid. Corroborating the two indicators, basically
the value and/or number of claims incurred but not yet settled increased. This growth is generated
mainly by the increase in technical reserves for class A10, which is mainly MTPL.
The structure of gross technical reserves for the general insurance category, the share of significant
classes of the total, on 31 December 2016, was the following:
 premium reserves, in gross value of RON 3,322,543,527, represents 40.74% of the total
value of gross technical reserves relating to general insurance.
 claims reserves approved, worth RON 3,137,973,069, represented 38.48% of the value of
gross technical reserves established for general insurance.
 gross claims reserves unapproved, worth RON 1,375,361,115, represented 16.86% of the
value of gross technical reserves established for general insurance.
Table 14 Structure of gross technical reserves for general insurance on 31 March 2016 compared to 31
December 2015
Share in
31 March 2016
total
Premium reserve
Claim reserve approved
Claim reserve unapproved
Other technical reserves
Total reserves
RON
3,322,543,527
3,137,973,069
1,375,367,750
319,930,732
8,155,815,078
31 December
2015
Premium reserve
Claim reserve approved
Claim reserve unapproved
Total reserves
RON
3,062,384,525
3,090,414,463
1,345,973,851
368,692,265
7,867,465,104
Class A3
(%)
RON
40.74%
856,203,707
38.48%
360,386,601
16.86%
111,524,867
3.92%
94,901,818
100.00% 1,423,016,993
Share in
total
Class A3
(%)
RON
38.92%
876,989,042
39.28%
383,125,730
17.11%
106,213,188
4.69%
94,693,415
100.00% 1,461,021,375
Class A8
RON
475,489,549
279,316,178
48,860,903
127,898,593
931,565,223
Class A8
RON
461,242,448
275,213,626
40,309,623
132,049,123
908,814,820
Class A10
RON
1,508,080,972
2,000,470,267
1,113,155,667
44,539,325
4,666,246,231
Class A10
RON
1,235,337,609
1,944,754,600
1,101,957,433
44,616,307
4,326,665,949
Share of
significant
classes
(%)
85.47%
84.14%
92.60%
83.56%
86.08%
Share of
significant
classes
(%)
84.04%
84.23%
92.76%
73.60%
85.12%
Technical reserves established for life insurance
For life insurance, the technical reserves maintained relatively constant compared to the end of
2015, reaching the level of RON 6,616,923,585.
20
Of these, reserves related to class C1 Life insurance, annuities and supplemental life insurance, and
those related to class C3 Life insurance and annuities account together for approximately 99% of the
total.
The increase in the value of technical reserves in life insurance is both the effect of underwriting new
risks and fluctuation of the calculated value of reserves following the change in the parameters
included in the technical base (e.g. risk-free yield used to calculate the present value of future flows
of receipts and payments, the rate of annual bonuses included in the insured amount etc.).
Unlike general insurance, where insurance policies have in general a duration of 1 year or less
(reserves established following to be released either upon claim payment or at the end of the
contract), life insurance contracts have a long time horizon, which makes reserves be kept for long
periods of time and accumulate gradually.
In the two tables below, this particularity of the life insurance business is noticed, in the current
context of evolution of the insurance market in Romania, respectively the fact that most of the
increase in gross technical reserves was determined by the increase in the value of the mathematical
reserve.
Table 15 Structure of gross technical reserves for the life insurance category, on 31 March 2016
Premium reserve
Mathematical reserves
Reserve of benefits and rebates
Total technical reserves related to life insurance
31 March 2016 (RON)
Share in total (%)
460,642,758
5,873,680,524
124,859,110
157,741,193
6,616,923,585
6.96%
88.77%
1.89%
2.38%
100.00%
Table 16 Structure of gross technical reserves for the life insurance category, on 31 December 2015
Premium reserve
Mathematical reserves
Reserve of benefits and rebates
Total technical reserves related to life insurance
31 December 2015 (RON)
Share in total (%)
473,673,990
5,842,371,891
133,360,953
160,392,874
6,609,799,708
7.17%
88.39%
2.02%
2.42%
100.00%
I.6. Liquidity of insurance companies
The liquidity ratio is determined as ratio between liquid assets provided by rules and short-term
liabilities of insurers to policyholders and, according to prudential requirements, has to be above
par. On 31 March 2016, the liquidity ratio for each of the insurance categories, as well as elements
contributing to its formation recorded the following sizes:
Table 17 Liquidity ratio for each of the insurance categories on 31 March 2016
Government
Bonds
(mln RON)
GI
4.089
Current
Deposits
Securities traded
account and
(mln
(mln RON)
Cash (mln
RON)
RON)
47
234
539
214
Municipal
bonds (mln
RON)
Short-term
bonds (mln
RON)
2.504
Liquidity
ratio
2.05
21
LI
3.287
64
1.244
346
60
908
5.51
Table 18 Liquidity ratio for each of the insurance categories on 31 December 2015
Governmen
t Bonds
(mln RON)
GI
LI
Municipal
bonds (mln
RON)
3.564
3.124
Current
Deposits
account and
(mln
Cash (mln
RON)
RON)
246
667
323
1.257
360
55
Securities traded
(mln RON)
47
64
Short-term
bonds (mln
RON)
Liquidity
ratio
2.438
881
2.00
5.46
Compared to 2015, it is noticed a slight increase in the level of the liquidity ratio for both general
insurance and life insurance.
I.7. Reinsurance
The rate of transfer for reinsurance has increased significantly over recent years for life insurance
activities and for the first time for life insurance activities a significant increase in gross premiums
written is noticed here.
For the general insurance category
Approximately 34% of gross premiums written in the 1st quarter of 2016 in the general insurance
segment were transferred for reinsurance, the level being the highest in the last 5 years and also in
significant increase compared to the same period of 2015, when it amounted to only about 31%.
Table 19 The evolution of GPW and net reinsurance premiums during 2012-2016 (first quarter) for GI
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
GPW (RON)
1,733,727,436
1,707,087,760
1,698,546,602
1,815,170,223
1,992,030,603
Net reinsurance premiums
Rate of retention (%)
(RON)
1,287,774,923
74.28
1,182,445,754
69.27
1,157,417,152
68.14
1,257,509,794
69.28
1,386,304,452
66.53
Rate of transfer for
reinsurance (%)
25.72
30.73
31.86
30.72
33.47
Related to gross claims paid in the first quarter of 2016, about 75% was represented by the financial
effort of insurance companies, the remaining being amounts recovered from reinsurers, share
declining compared to the same period of 2015.
Table 20 The evolution of GCP and net reinsurance GCP during 2012-2016 (first quarter) for GI
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
GCP (RON)
1,090,692,799
1,108,771,758
1,134,608,598
1,044,934,928
913,410,298
Net reinsurance GCP (RON)
949,457,721
874,692,456
659,896,255
737,261,798
696,731,534
Rate of retention
(%)
87.05
78.89
58.16
70.56
76.28
Rate of transfer
for reinsurance
(%)
12.95
21.11
41.84
29.44
23.72
22
From the gross technical reserves existing at the end of the first quarter of 2016, about 34% were
related to transfers for reinsurance, the share being the highest in the last 5 years and being
corroborated with the highest share of transfers for reinsurance related to gross premiums written
in this quarter (the table above).
Table 21 The evolution of gross technical reserves and net technical reserves in reinsurance during 20122016 (first quarter) for GI
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
Gross technical
reserves (RON)
7,307,368,338
6,957,220,269
7,297,736,309
7,794,436,538
8,155,815,078
Net technical reserves in
Rate of retention Rate of transfer for
reinsurance (%)
(%)
reinsurance (%)
5,276,908,100
72.21
27.79
4,905,250,497
70.51
29.49
5,450,238,078
74.68
25.32
5,598,323,126
71.82
28.18
66.52
33.48
5,425,406,011
Traditionally, there are important differences in terms of reinsurance policy between the life
insurance business and the general insurance business. For an important part of the general
insurance products (e.g. catastrophe insurance, liability insurance), as part of the own risk
management strategy, insurers often resort to various forms of contracts of transfer for reinsurance,
thus limiting the maximum damage incurred in case of insured evens with significant financial
impact.
For the life insurance category
In the case of life insurance, in general insurance companies take a much larger share of the
underwritten risk. Due to the fact that insurance premiums are in general expected and
compensation in case of occurrence of the insured event is set under contract for each event, so
more predictable, life insurance companies don't resort as frequently as general insurance
companies to the transfer for reinsurance. In the last 5 years, the rate of transfer for reinsurance
was below 4% of gross premiums written and no more 2% of gross technical reserves, fluctuations
from year to another not being significant, except for the first quarter of 2016.
Table 22 The evolution of GPW and net reinsurance premiums during 2012-2016 (first quarter) for LI
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
Gross premiums
Rate of retention
Rate of transfer
Net reinsurance premiums (RON)
written (RON)
(%)
for reinsurance (%)
431,871,167
418,134,645
96.82
3.18
419,662,147
404,663,812
96.43
3.57
382,283,829
368,791,710
96.47
3.53
411,103,369
395,395,018
96.18
3.82
438,267,120
388,565,961
88.66
11.34
23
Table 23 The evolution of GCP and net reinsurance GCP during 2012-2016 (first quarter) for LI
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
32,801,363
31,946,430
36,683,740
43,685,843
28,616,564
29,455,080
32,772,931
37,387,050
87.24%
92.20%
89.34%
85.58%
Rate of transfer
for reinsurance
(%)
12.76%
7.80%
10.66%
14.42%
42,388,195
37,794,323
89.16%
11.34%
GCP
(RON)
Net reinsurance GCP (RON)
Rate of retention
(%)
Table 24 The evolution of gross technical reserves and net technical reserves in reinsurance during 20122016 (first quarter) for LI
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
4,991,821,240
5,584,699,095
5,943,881,236
6,290,008,894
4,901,654,068
5,491,700,234
5,869,018,309
6,250,732,255
98.19%
98.33%
98.74%
99.38%
Rate of transfer
for reinsurance
(%)
1.81%
1.67%
1.26%
0.62%
6,616,923,585
6,586,679,218
99.54%
0.46%
Gross technical
reserves (RON)
Net technical reserves in
reinsurance (%)
Rate of retention
(%)
I.8. Statistical data under the new solvency regime
Entry into force of Solvency II Directive as of 1 January 2016 required insurance companies to align
with new rules and standards. The Directive enhances consumer protection by introducing
prudential financial requirements (Pillar I) suitable for securing the guarantee of payments to
owners and/or beneficiaries of insurance policies.
32 insurance companies became subject to this regime on 1 January 2016.
Prudential financial requirements according to Solvency II
Solveny capital
requirement (SCR)
Technical reserves
Total liabilities
=
Other obligations
Total Assets
Minimum capital
requirement
(MCR)
Being a prudential regime based on risks, Solvency II uses specific models of evaluation of assets,
liabilities and capital requirement for insurance activities. By applying them, significant differences
24
result compared to the values calculated according to statutory regulations (Solvency I regime),
especially in terms of reserves and prudential financial requirements (capital requirement).
Figure 14 Additional requirement of capitalization following the move to SII
3,00
003
2,500
Miliarde lei
2,00
001
1,500
001
1,00
,500
,00
Cerință de capital SII
Cerință de capital SI
Cerință suplimentară ca
urmare a trecerii la SII
According to Solvency II, capital requirements for insurance companies are higher, being based on
risks actually taken by them (both from an investment perspective and in terms of underwritings). A
comparative analysis between capital requirements imposed by Solvency II and Solvency I indicates
for the insurance sector in Romania an additional requirement of capitalization worth RON 1.26bn at
market level, which accounts for approximately 16% of the volume of gross premiums written in
2015.
The additional requirement of financing appeared with the move to the Solvency II regime is
partially covered by the surplus of own funds resulting from the change of the asset and reserve
evaluation method (especially for life insurance). Thus, on 1 January 2016 companies had eligible
own funds to cover capital requirements increasing by RON 1.14bn (about 40%) compared to the
available solvency margin on 31 December 2015, according to the previous prudential regime.
Figure 15 Additional capitalization resulting from the move to Solvency II
4,5
3,97
4
Miliarde lei
3,5
2,83
3
2,5
2
1,5
1,14
1
0,5
0
Fonduri proprii eligibile
Marja disponibilă
Diferență fonduri proprii
During Q1 2016, both the value of assets and that of liabilities of insurance companies (measured
according to the principles of Solvency II regime) increased marginally. Thus, total assets of
25
insurance companies increased by 3.5% in the first quarter of 2016 compared to the value posted on
1 January 2016.
Figure 16 The evolution of total assets and liabilities of insurance companies
Miliarde lei
18
017
016
16
14
013
013
12
10
8
6
4
2
0
Day 1
Trim. I 2016
Total active
Total datorii
During the first quarter, assets of insurance companies increased faster than liabilities (according to
evaluations based on Solvency II), which is the expression of a viable activity in the market as a
whole. Thus, the surplus of assets compared to liabilities was RON 3.92bn on 31 March 2016, up
compared to RON 3.78bn on 1 January 2016.
Milioane lei
Figure 17 The evolution of Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR)
3000,0
2.626
2.599
2500,0
2000,0
1500,0
1.134
1.104
1000,0
500,0
,0
Day 1
SCR
Trim. I 2016
MCR
Following the increase in the underwriting activity, the level of prudential financial requirements
(expressed in the Solvency II regime by SCR and MCR) also increased during Q1 2016.
A comparative analysis between the situation recorded on Day 1 and that existing at the end of the
first quarter of 2016 indicates an increase in the solvency capital requirement (SCR) by RON 27mln,
i.e. a nominal increase by over 1%. This indicator has a meaning equivalent to the maximum
between the safety fund and the minimum solvency margin that was calculated in the Solvency I
regime.
26
Regarding the minimum capital requirement, which replaces with the entry into force of Solvency II
regime the safety fund, an increase is noticed during Q1, by 2.7% (about RON 30mln).
Eligible own funds to cover the solvency capital requirement was at the end of Q1 2016 RON 4.02bn,
up 1.5% compared to Day 1.
Figure 18 The evolution of eligible own funds to cover the solvency capital requirement
005
004
004
004
004
Miliarde lei
003
003
002
002
001
001
000
Day 1
Trim. I 2016
The aggregate value of eligible own funds to cover SCR is formed by totaling the own funds of the
company classified on the 3 tiers defined by the Solvency 2 regime depending on quality criteria.
Figure 19 The structure of eligible own funds to cover SCR (D1)
Rang 1 cu
restricții 1%
Rang 1 fără
restricții
93%
Altele
7%
Rang 2
5%
Rang 3
1%
On 1 January 2016 (the first day of applicability of the Solvency II regime), eligible own funds were
worth RON 3.9bn at the level of the entire system, consisting mainly of Tier 1 items without
restrictions (93.11%) and Tier 2 items (4.77%).
During the first quarter, eligible own funds had an upward evolution, reaching the value of RON 4bn.
In terms of components, there were no significant changes, Tier 1 items without restrictions still
having the largest share (93.51%).
27
Figure 20 The structure of eligible own funds to cover SCR (31 March 2016)
Rang 1 cu
restricții 0%
Rang 1 fără
restricții
94%
Altele
6%
Rang 2
5%
Rang 3
1%
The significant share of Tier 1 items in total eligible own funds indicates that, at market level, the
capital held by insurance companies in Romania is of very good quality (mainly equity).
SCR and MCR rates represent the ratio between the eligible own funds to cover capital requirements
and their actual value. In the first quarter of 2016, there are 6 companies that fail to fulfill the
Solvency Capital Requirement (SCR), of 32 that report in the Solvency 2 regime, and 4 that fail to
fulfill the Minimum Capital Requirement (MCR), of which 3 don't fulfill the Solvency Capital
Requirement either.
Figure 21 The distribution of insurance companies depending on SCR/MCR rate on 31 March 2016
28
It can be noticed that for most companies the value of eligible own funds increased marginally
during Q1 2016. Also, the degree of coverage of SCR improved both for the entire market (as it result
from data presented above) and at individual level, for most of the companies. Also, it is noticed that
on 31 March 2016 for most companies the level of eligible own funds was positive and the SCR rate
was above par.
I.9. The evolution of the motor vehicle liability insurance market (MTPL) in 2016
In early 2016, the following nine insurers authorized by ASF for MTPL activities were active in the
insurance market: Allianz-Ţiriac Asigurări S.A., Asigurarea Românească - Asirom Vienna Insurance
Group S.A., Societatea de Asigurare - Reasigurare City Insurance S.A., Carpatica SA, Euroins România
Asigurare - Reasigurare S.A., Generali Romania Asigurare Reasigurare S.A., Groupama Asigurări S.A.,
Omniasig Vienna Insurance Group S.A. and Uniqa S.A. On 27 July 2016, the operating authorization
was withdrawn for Carpatica SA, the bankruptcy proceedings being triggered in its case.
Table 25 The evolution of gross premiums written for class A10 (MTPL+CLI)
Period
Q 1 2011
Q 1 2012
Q 1 2013
Q 1 2014
Q 1 2015
Q 1 2016
GPW class A10
(MTPL + CLI) (RON)
667,874,341
618,068,014
676,508,834
738,580,212
879,117,632
1,115,884,713
Pace of change GPW (%)
7.46%
9.46%
9.18%
19.03%
26.93%
The total amount of insurance premiums underwritten for MTPL during the first quarter of 2016
amounted to RON 1,078,284,954, the remainder to the total of the A10 class representing the
carrier liability insurance.
The MTPL segment was one of the most dynamic during 2015, with an increase in gross premiums
written much more extensive compared to the market average. Thus, the total amount of insurance
premiums written for MTPL at the end of 2015 reached the value of RON 3,115 thousand, compared
to 2014 recording an increase by 16.6%. This growth continued in the first quarter of 2016, with an
increase in gross premiums written by 31.6% compared to the same period of the previous year.
29
Figure 22 The evolution of gross premiums written for MTPL during 2010-2015
3.500.000
3.000.000
2.500.000
2.000.000
1.500.000
1.000.000
500.000
0
2010
2011
2012
2013
2014
2015
PBS (mii lei)
2.464.451
1.874.886
2.055.110
2.367.108
2.671.700
3.115.092
Nr contracte încheiate
6.539.783
6.400.066
6.779.620
6.901.857
7.141.794
7.314.551
Nr contracte (unități anuale)
4.064.523
4.184.632
4.325.404
4.399.068
4.602.825
4.743.093
PBS (mii lei)
8.000.000
7.000.000
6.000.000
5.000.000
4.000.000
3.000.000
2.000.000
1.000.000
0
Figure 23 The evolution of gross premiums written for MTPL quarterly during 2015-2016
1.200.000
2.500.000
1.000.000
2.000.000
800.000
1.500.000
600.000
1.000.000
400.000
500.000
200.000
0
Q12015
Q22015
Q32015
Q42015
Q12016
819.416
745.994
638.534
911.149
1.078.285
1.986.031
1.877.921
1.554.967
1.895.632
2.050.417
Nr contracte (unități anuale) 1.384.486
1.186.430
941.515
1.230.662
1.444.059
PBS (mii lei)
PBS (mii lei)
0
Table 26 The pace of change of MTPL market indicators from quarter to quarter during 2015-2016
Period
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
GPW MTPL
Pace of change
(thousand
(%)
RON)
819,416
745,994
-8.96%
638,534
-14.40%
911,149
42.69%
1,078,285
18.34%
Average
No. of
Pace of change
Pace of change
premium
contracts
(%)
(%)
(RON)
(annual units)
592
1,384,486
629
6.24%
1,186,430
-14.31%
678
7.86%
941,515
-20.64%
740
9.17%
1,230,662
30.71%
747
0.86%
1,444,059
17.34%
Expressed in annual units (to take into account the various duration of policies), the number of
contracts concluded for MTPL in the first quarter of 2016 was 1,444,059, which means an increase
by 4.30% compared to the similar period of the previous year and by 17.34% compared to the fourth
quarter of 2015.
30
This increase in the number of MTPL contracts (both as a total and especially expressed in annual
units) was accompanied by an improvement in the contracts' structure on maturities. Thus,
compared to Q1 2015 it is noticed a significant growth of the number of MTPL contracts concluded
with a duration of 12 months (+7.7%) and a decrease in the number of contracts for 6 months (1.92%), while the number of contracts for 1 month was maintained very low (only 6.46% of the
total).
At the same time, data below show that the total number of MTPL policies in force at the end of Q1
2016 was 4,652,631, up approximately 3% compared to the same period of the previous year.
Table 27 Number of contracts on natural and legal persons
Name of the indicator
Number of contracts in force
at the end of the reporting
quarter (1), of which
With validity for 6 months or
12 months
3/31/2016
Legal
persons
Natural
persons
Total
Natural
persons
3/31/2015
Legal
persons
Total
3,527,480
1,125,151
4,652,631
3,425,001
1,093,427
4,518,428
3,488,306
1,115,961
4,604,267
3,389,518
1,087,648
4,477,166
39,174
9,190
48,364
35,483
5,779
41,262
Number of contracts
concluded in the reporting
financial year (2), of which:
1,586,031
464,386
2,050,417
1,544,028
442,003
1,986,031
With validity for 12 months
701,433
246,602
948,035
641,931
238,339
880,270
767,322
202,659
969,981
800,110
188,857
988,967
With validity for 1 month
117,276
15,125
132,401
101,987
14,807
116,794
502,199,585
452,538,026
954,737,611
429,817,523
352,447,911
782,265,434
521,879,258
556,405,696
1,078,284,954
431,323,004
388,092,613
819,415,617
269,507,457
324,457,579
593,965,036
222,212,417
255,157,009
477,369,426
243,737,647
229,973,771
473,711,418
202,946,997
131,405,055
334,352,052
8,634,154
1,974,346
10,608,500
6,163,590
1,530,549
7,694,139
Gross premiums collected (3): RON Gross premiums written (4), of
which: - RON -
Table 28 The share of the number of contracts concluded in the period in total contracts depending on the
contracted period - quarterly 2015-2016
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
For a period of 12 months
44.32%
32.62%
29.64%
36.90%
46.24%
For a period of 6 months
49.80%
59.87%
60.11%
54.63%
47.31%
For a period of 1 month
5.88%
7.52%
10.25%
8.47%
6.46%
100.00%
100.00%
100.00%
100.00%
100.00%
Total
In terms of distribution of contracts depending on the contracted period of the policy (12 months/6
months/1 month), the evolution in the last 5 years indicates a slight trend of consolidation of the
market, in the sense of increase in the share of MTPL policies concluded for a period of 1 year.
31
Table 29 The share of the number of contracts concluded in total contracts depending on the contractor
(natural or legal person) -quarterly 2015-2016
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Natural persons
77.74%
79.45%
79.13%
78.99%
77.35%
Legal persons
22.26%
20.55%
20.87%
21.01%
22.65%
100.00%
100.00%
100.00%
100.00%
100.00%
Total
In the last year, there were no significant changes in the structure of customer portfolios, so at the
level of the entire market the share of contracts concluded with natural persons remained constant,
around 78-79%.
Market share
After Asirom bankruptcy (exit from the market of a top 3 competitor), it was noticed that market
redistribution was made among a small group of companies, respectively Asirom, Carpatica, Euroins
and City, noticing the strong growth of Asirom, to approximately 26% of the MTPL market (Asirom
has basically doubled its market share in the first 3 months of 2016).
Table 30 Ranking of insurance companies based on gross premiums written for MTPL in the first quarter of
2016:
No.
Company
GPW MTPL (RON) Share (%)
1
ASIROM VIG
278,608,851
25.84
2
CARPATICA ASIG
206,971,941
19.19
3
EUROINS ROMANIA
200,533,238
18.60
4
CITY INSURANCE
125,162,012
11.61
5
ALLIANZ - TIRIAC ASIGURĂRI
74,810,033
6.94
886,086,075
82.18
Total (1-5)
6
OMNIASIG VIG
60,797,198
5.64
7
GROUPAMA ASIGURĂRI
55,322,671
5.13
8
UNIQA ASIGURĂRI
49,321,297
4.57
9
GENERALI ROMANIA
26,757,713
2.48
1,078,284,954
100.00
TOTAL
Also, a significant concentration is noticed to the first insurers of the top, reaching the situation
where the top 4 insurers hold over 75% of the MTPL portfolio in Romania.
Regarding the history of competition in the MTPL market and the battle for winning higher market
share, statistics for 2011-2015 indicate that traditionally the MTPL market in Romania has been
dominated by 3-4 large insurers, while the shares of the other players were much lower or even
insignificant. For example, at the end of 2015 the companies with the largest share in the MTPL
market were Euroins, Carpatica and Asirom, which held together over half the market (51.18%).
32
Table 31 Evolution of market shares recorded on MTPL for 2011-2015:
1
2
3
4
5
6
7
8
9
10
11
Year 2011
Year 2012
Year 2013
Year 2014
Year 2015
Euroins
12.8%
18.8%
19.5%
16.6%
22.0%
Carpatica Asig
9.2%
12.7%
17.3%
18.0%
16.4%
Asirom VIG
15.6%
10.8%
8.6%
9.4%
12.7%
City Insurance
0.3%
2.3%
7.5%
10.7%
10.4%
Omniasig VIG*)
20.4%
10.2%
7.9%
9.9%
10.2%
ASTRA***)
20.3%
16.7%
15.1%
15.4%
8.7%
Allianz Țiriac
8.0%
8.3%
8.7%
8.3%
8.2%
Groupama
4.3%
9.3%
5.2%
4.3%
5.6%
Uniqa
4.3%
7.1%
8.2%
5.5%
3.8%
Generali**)
4.6%
3.6%
1.7%
1.7%
1.9%
ABC
0.1%
0.1%
0.3%
0.3%
0.0%
Total
100%
100%
100%
100%
100%
*) For the years before the merger, Omniasig and BCR Asigurari Generale figures were compiled
**) For the years before the merger, Generali and Ardaf figures were compiled
***) Data on 30 June 2015 for 2015
ASIROM VIG ranks the first in terms of the volume of gross premiums written for MTPL, holding a
market share of approximately 26%. Insurance companies Carpatica, Euroins, City Insurance and
Allianz Țiriac hold significant shares in the MTPL market, being in the top 5 companies in this
segment by gross premiums written.
According to the main indicators used by the Competition Council, the concentration risk in the MTPL
market is medium to high, the top 5 players holding a total market share of over 82%.
The Herfindahl-Hirschman index (HH) is calculated by summing the squares of the individual market
shares of all firms in the market. Thresholds used in this analysis consider a high concentration for an
index higher than 0.2, a moderate concentration for HH between 0.1 and 0.2 and a low concentration
for HH less than 0.1.
33
Figure 24 Degree of concentration of the MTPL market
100%
,180,000
,164,997
090%
,160,000
080%
,140,000
070%
,120,000
060%
,100,000
050%
,080,000
040%
,060,000
030%
,040,000
093%
010%
082%
064%
020%
,020,000
000%
CR3
CR5
CR7
HHI
Evolution of damages
At the level of the entire market, the value of gross damage paid was RON 513,798,063, down 12%
from the same quarter of 2015. The number of claim files paid recorded a decrease by
approximately 15%, from 85,209 to 74,743 files. Thus, the average claim paid for the market as a
whole was approximately RON 6.874. This decrease is mainly generated by the exit in 2015 of an
important player from the market (Astra), claims for MTPL contracts related to this company
currently being paid by the Policyholders Guarantee Fund.
The number of claim files for bodily injuries for the entire market in Q1 2016 was 2,510 files, up
0.5%, the value of gross compensation paid amounting to RON 98,060,033, down over 9% compared
to the same period of the previous year. It results an average compensation for bodily injuries of
RON 39,068. While during 2010-2015 there was an increase by 4 times in the volume of
compensation paid for bodily injuries, in the first quarter of 2016 the trend seems to have reversed.
Figure 25 The quarterly evolution of MTPL claims paid on bodily injuries (in thousand RON)
140.000
3.000
120.000
2.500
100.000
2.000
80.000
1.500
60.000
1.000
40.000
500
20.000
0
Vatamari corporale
Numar dosare
Q12015
Q22015
Q32015
Q42015
Q12016
108.104
118.588
91.396
121.091
98.060
2.498
1.601
1.288
1.406
2.510
0
34
For material damages, gross compensations of RON 415,738,030 were paid, resulting an average of
RON 5,756, up around 2.9% compared to Q1 2015.
Figure 26 The quarterly evolution of MTPL material damages (in thousand RON)
600.000
500.000
400.000
300.000
200.000
100.000
0
Q12015
Q22015
Q32015
Q42015
Q12016
Daune materiale
476.812
363.548
312.206
358.044
415.738
Numar dosare
85.209
66.331
55.973
60.267
72.233
90.000
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0
Table 32 The evolution of technical reserves quarterly during 2015 - Q1 2016 (thousand RON)
7.000.000
6.000.000
5.000.000
4.000.000
3.000.000
2.000.000
1.000.000
0
Total
Q12015
Q22015
Q32015
Q42015
Q12016
2.649.845
2.752.071
2.324.281
2.756.322
2.987.479
IBNR
877.460
854.233
747.750
941.051
1.059.143
RBNS
1.772.385
1.897.838
1.576.531
1.815.271
1.928.336
Table 33 The situation on companies of claim files paid in Q I 2016 (the current year and the previous years)
COMPANY
1
2
3
ABC2
ALLIANZ
ASIROM
Number of claim files
paid (pieces)
VC
DM
Total
2
136
625
13
5,274
8,309
15
5,410
8,934
Share in
total
%
0.02%
7.24%
11.95%
Gross compensation paid
(RON)
VC
DM
Total
54,000
4,320,852
10,386,802
31,181
23,863,331
55,247,536
85,181
28,184,183
65,634,338
Share in
total
%
0.02%
5.49%
12.77%
2 the MTPL authorization of ABC Asigurări was withdrawn upon demand in 2015
35
4
5
6
7
8
9
10
CARPATICA
CITY
EUROINS
GENERALI
GROUPAMA
OMNIASIG
UNIQA
TOTAL
476
85
358
110
190
382
146
2,510
14,837
8,762
19,951
1,395
3,331
6,634
3,727
72,233
15,313
8,847
20,309
1,505
3,521
7,016
3,873
74,743
20.49%
11.84%
27.17%
2.01%
4.71%
9.39%
5.18%
100.00%
26,163,535
3,036,544
19,523,230
3,788,480
4,061,932
19,395,848
7,328,810
98,060,033
93,830,651
52,148,208
98,657,237
6,037,328
17,698,704
43,600,190
24,623,664
415,738,030
119,994,186
55,184,752
118,180,467
9,825,808
21,760,636
62,996,038
31,952,474
513,798,063
23.35%
10.74%
23.00%
1.91%
4.24%
12.26%
6.22%
100.00%
Figure 27 The evolution of the average premium and average claim during 2010-2015
700
600
500
400
300
200
100
0
2010
2011
2012
2013
2014
2015
Prima medie RCA
606
448
475
538
580
657
Dauna medie RCA
4.854
5.311
6.010
6.284
6.901
7.101
Prima medie RCA
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
Dauna medie RCA
The comparative analysis between the evolution of the average MTPL premium and the volume of
the average claim paid by insurers indicates a similar evolution in 2010-2015, respectively a constant
increase in the value of the average claim, which was inherently felt in the MTPL premium.
Figure 28 The evolution of the average premium and average claim during 2015-2016 - quarterly
800
700
600
500
400
300
200
100
0
Q12015
Q22015
Q32015
Q42015
Q12016
Prima medie RCA
592
629
678
740
747
Dauna medie RCA
6.669
7.097
7.048
7.769
6.874
8.000
7.800
7.600
7.400
7.200
7.000
6.800
6.600
6.400
6.200
6.000
For the entire market, the average annualized MTPL premium increased in the first quarter of 2016
by only 0.86% compared to the last quarter of 2015, respectively by 26.16% compared to the same
period of the previous year.
36
Table 34 The average premium annualized in RON at market level in the last consecutive 5 quarters
The average premium annualized in RON at market level 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1
Total market
592
629
678
740
747
Natural persons
411
439
476
502
477
Legal persons
1,162
1,267
1,319
1,517
1,593
- For contracts for 12 months
542
597
663
704
627
- For contracts for 6 months
676
660
689
784
977
- For contracts for 1 month
791
829
832
954
961
The average MTPL damage paid in the first quarter of 2016 fell compared to the fourth quarter of
2015, but increased compared to the first quarter of 2015. Given that technical reserves increased
significantly in the first quarter of 2016, this decrease in the average claim depending on claims paid
may be overestimated. However, if the decrease in the level of the average claim in Q1 2016 is
confirmed by the evolution of this indicator in the following quarters, it creates prerequisites for
capping the growth of MTPL tariffs in the coming period, given that the claim is the main cost
influencing the MTPL price.
Table 35 Detailing the method of calculation of the average premium for Q1 2016
Total
Natural Persons
Legal Persons
2,050,417
1,586,031
464,386
 For a period of 12 months
948,035
701,433
246,602
 For a period of 6 months
969,981
767,322
202,659
 For a period of 1 month
132,401
117,276
15,125
1,078,284,954
521,879,258
556,405,696
 With validity for 12 months
593,965,036
269,507,457
324,457,579
 With validity for 6 months
473,711,418
243,737,647
229,973,771
10,608,500
8,634,154
1,974,346
626.52
384.22
1,315.71
976.74
635.29
2,269.56
961.49
883.47
1,566.42
1,444,059
1,094,867
349,192
746.70
476.66
1,593.41
Number of contracts concluded for the period, of which
MTPL premiums written - RON of which:
 With validity for 1 month
The average MTPL premium for 12-month contracts
(calculated as ratio between the volume of premiums
written for contracts with a validity of 12 months and the
number of MTPL contracts with a validity of 12 months) RON
The average annualized MTPL premium for 6-month
contracts (calculated as ratio between the volume of
premiums written for contracts with a validity of 6 months
and the number of MTPL contracts with a validity of 6
months multiplied by 2) - RON
The average annualized MTPL premium for 1-month
contracts (calculated as ratio between the volume of
premiums written for contracts with a validity of 1 month
and the number of MTPL contracts with a validity of 1
month multiplied by 12) - RON
Annual exposure units (number of 12-month
contracts + number of 6-month contracts divided by
2 + number of 1-month contracts divided by 12)
Average annualized MTPL premium - RON (Weighted
average of average annualized premiums for each
category with the number of annual exposure units in
each category)
37
Table 36 The evolution of average claim for natural persons during 2015-2016
Quarter
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
Number of claim files paid:
Gross claims paid: - RON Average claim
Bodily injuries
1,632
68,589,662
42,028
1,009
65,989,681
65,401
793
52,041,183
65,626
837
69,954,986
83,578
1,544
56,216,290
36,410
Individuals
Material damages
52,484
271,143,740
5,166
39,323
194,198,539
4,939
33,086
178,884,723
5,407
35,778
182,708,411
5,107
44,835
231,004,383
5,152
Total
54,116
339,733,402
6,278
40,332
260,188,220
6,451
33,879
230,925,906
6,816
36,615
252,663,397
6,901
46,379
287,220,673
6,193
Table 37 The evolution of average claim during 2015-2016
Quarter
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
Bodily injuries
866
39,514,694
45,629
592
52,598,756
88,849
495
39,354,345
79,504
569
51,135,764
89,870
966
41,843,743
43,317
Legal entities
Material damages
32,725
205,668,176
6,285
27,008
169,349,729
6,270
22,887
133,321,646
5,825
24,489
175,336,059
7,160
27,398
184,733,647
6,743
Total
33,591
245,182,870
7,299
27,600
221,948,485
8,042
23,382
172,675,991
7,385
25,058
226,471,823
9,038
28,364
226,577,390
7,988
38
Table 38 The evolution of average claim per total during 2015-2016
Quarter
Q1/2015
Q2/2015
Q3/2015
Q4/2015
Q1/2016
Bodily injuries
2,498
108,104,356
43,276
1,601
118,588,437
74,071
1,288
91,395,528
70,959
1,406
121,090,750
86,124
2,510
98,060,033
39,068
Total
Material damages
85,209
476,811,916
5,596
66,331
363,548,268
5,481
55,973
312,206,369
5,578
60,267
358,044,470
5,941
72,233
415,738,030
5,756
Total
87,707
584,916,272
6,669
67,932
482,136,705
7,097
57,261
403,601,897
7,048
61,673
479,135,220
7,769
74,743
513,798,063
6,874
39
Monitoring of MTPL insurance premiums for vans and passenger vehicles January - June
2016
ASF has constantly monitored the evolution of MTPL tariffs in the segment of vans/trucks
and passenger vehicles, requesting aggregate information from each insurer on the number of MTPL
policies and the actual value of gross premiums written in these categories of vehicles.
Starting with the month of January 2016, the monitoring and statistical analyzes on the
evolution of MTPL tariffs for vans/trucks and passenger vehicles were made systematically, on a
monthly basis, by ASF.
The aggregate results at the level of the entire market were made public by press releases,
the statistical data being still available on the website of the institution
(http://asfromania.ro/informatii-publice/statistici/statistici-asigurari).
Thus, according to reports sent by insurance companies within the monitoring process of
MTPL tariff evolution handled by ASF, in January 2016 (the moment of initiating the comparative
analyzes on MTPL tariffs), the average premium for policies concluded for 12 months, calculated
cumulatively for the vans/trucks and passenger transport segments, recorded an increase of 42%
compared to June 2015. Separately, in the vans/trucks segment, the average premium climbed by
46%, while for passenger transport vehicles the increase was 61%. In particular, if only the group of
vehicles falling with B0 bonus class is analyzed, the reports of insurers show that the average
premium increased by 43% for the two segments cumulatively, respectively by 47% for the
vans/trucks segment and by 36% for passenger transport vehicles.
Moreover, statistical data centralized in the following months have not indicated significant
increases in the MTPL tariffs, usually recording only slight adjustments upwards or downwards,
depending on the evolution of the type and/or volume of contracts concluded, respectively on the
categories of policyholders and insured vehicles in the respective period.
According to the latest statistics available at ASF, at the level of both categories of vehicles
included in monitoring (vans/trucks and means of passenger transport), on all bonus-malus classes,
the average increase in MTPL premiums in the period of June 2015 - June 2016 was 52.73%, within
the 50% ceiling set under the Protocol concluded by ASF with carriers in December 2015. In June
2016, the average premium for the two categories decreased by 4.3% compared to May, registering
a correction after the 6.1% rise in May compared to April.
The average premium related to Compulsory Civil Liability Insurance for Motor Vehicles
(MTPL) concluded for vehicles in the category of means of passenger transport, on all bonus-malus
classes, for 12 months, fell in June 2016 by 26% compared to the level recorded in the previous
month, after in May it had recorded a decrease by 10.8% vs. April. Thus, for the first time since ASF
started the monthly monitoring of MTPL tariffs evolution on the main segments of vehicles, the
average MTPL premium for the group of carriers of passengers marks two consecutive months of
decline, indicating a significant move for regulating the market and reshaping the portfolio structure.
The data are even more relevant as in June 2016 2,218 policies were concluded for this group of
vehicles, up 40% compared to sales in April and May. Thus, the average premium for means of
passenger transport in June was RON 3,458, by 14.24% higher than in June 2015. Evolution of
premiums differs from one vehicle segment to another, depending on risk data, but reports to ASF
show, for example, a decrease of over 10% of the average MTPL premium for means of passenger
40
transport with up to 18 seats in June 2016 vs. June 2015. For the segment with 18-40 seats, the
average MTPL premium increased in the last year by 11.16%.
The MTPL market remained tense in the category of vans/trucks, where the average
premium related to policies for twelve months fell by 2.4% in June compared to May, while in May it
had climbed by 8% compared to April. Compared to June 2015, the average premium for this
category of vehicles registered a growth of 61.55%, amounting to RON 3,016. For the segment
between 7.5 and 16 tons, the average MTPL premium was in June RON 2,207, 11.85% higher than in
June 2015, while for commercial vehicles weighing up to 3.5 tons the annual average premium
increase was 15.4%.
ASF will continue the process of monitoring of actual tariffs charged for both categories of vehicles
included in monitoring (vans/trucks and means of passenger transport), the results following to be
made public each time.
Figure 29 The evolution of the average monthly premium (RON) for vans/trucks for the bonus/malus
category B0
11.000
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
Iunie 2015
Ianuarie
2016
Februarie
2016
Martie
2016
Aprilie
2016
Mai 2016
Iunie 2016
pana la 3500
1.343
1.526
1.550
1.554
1.582
1.610
1.713
intre 3500 si 7500
2.285
2.048
1.871
1.767
2.375
2.391
2.376
intre 7500 si 16000
2.804
2.624
2.604
2.519
2.823
4.224
2.913
>16000
6.058
9.965
10.002
10.426
10.699
10.679
10.790
pana la 3500
intre 3500 si 7500
intre 7500 si 16000
>16000
41
category BM
11.000
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
Iunie 2015
Ianuarie
2016
Februarie
2016
Martie
2016
Aprilie
2016
Mai 2016
Iunie 2016
968
1.050
1.123
1.096
1.127
1.073
1.117
intre 3500 si 7500
1.700
1.625
1.567
1.276
1.764
1.947
1.966
intre 7500 si 16000
1.973
2.354
1.826
2.417
2.161
2.735
2.207
>16000
4.701
7.856
8.356
8.095
8.391
8.704
8.489
pana la 3500
pana la 3500
intre 3500 si 7500
intre 7500 si 16000
>16000
Figure 31 The evolution of the average monthly premium (RON) for passenger transport vehicles for the
bonus/malus category B0
11.000
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
Iunie 2015
Ianuarie
2016
Februarie
2016
Martie
2016
Aprilie
2016
Mai 2016
Iunie 2016
Total
4.240
5.785
5.824
6.537
6.234
6.155
6.229
pana la 18 locuri
3.256
4.161
4.318
3.896
4.023
4.354
4.135
intre 18 si 40 locuri
4.590
5.831
5.071
6.777
8.061
5.639
5.933
>40 locuri
5.798
6.953
6.817
7.465
5.257
7.344
7.806
Total
pana la 18 locuri
>40 locuri
42
bonus/malus category BM
11.000
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
Iunie 2015
Ianuarie
2016
Februarie
2016
Martie
2016
Aprilie
2016
Mai 2016
Iunie 2016
Total
3.027
4.638
4.614
4.848
5.237
4.671
3.458
pana la 18 locuri
2.648
5.424
5.552
5.930
5.981
5.409
3.017
3.927
6.013
5.417
5.686
6.496
5.060
4.366
>40 locuri
3.571
3.112
2.972
3.162
3.123
3.066
3.210
Total
pana la 18 locuri
>40 locuri
I.10. Home insurance
For voluntary home insurance, 2016 continued the downward trend. This reflects a lower activity in
terms of underwriting risks, the number of contracts newly concluded and gross premiums written,
recording in the first quarter of 2016 significant declines compared to the same period last year,
while gross claims paid have not fallen at the same pace.
Table 39 The dynamics of contracts and the volume of gross premiums written for voluntary home insurance
during 2012-2016 (quarterly)
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
Number of
Number of contracts concluded Gross premiums Gross claims paid
contracts in force
in the reporting period (pieces) written (RON)
(RON)
(pieces)
4,061,395
629,138
119,088,708
14,580,222
3,352,152
630,311
131,306,239
16,980,317
2,285,812
468,916
87,733,256
12,987,067
1,824,118
853,066
120,411,927
13,618,911
1,304,663
319,397
72,591,841
11,871,399
43
Figure 33 Evolution of the number of contracts and the volume of gross premiums written for
Voluntary home insurance during 2012-2016 (quarterly)
4.500.000
140.000.000
4.000.000
120.000.000
3.500.000
100.000.000
3.000.000
2.500.000
80.000.000
2.000.000
60.000.000
1.500.000
40.000.000
1.000.000
20.000.000
500.000
0
0
T1 2012
T1 2013
T1 2014
T1 2015
T1 2016
Prime brute subscrise (lei)
Indemnizatii brute platite (lei)
Numar contracte in vigoare (buc.)
Numar contracte incheiate in perioada raportare (buc.)
Compulsory home insurance is illustrated by the activity results of the Insurance Pool Against
Disasters PAID. They show a slight improvement for most indicators: the number of contracts in
force at the end of the period increased by about 7.6% and gross premiums written grew by 16.34%.
Table 40 Evolution of compulsory home insurance
Period
Q1 2012
Number of contracts in force
at the end of the reporting
period (pieces)
496,270
Number of new contracts,
concluded in the reporting
period (pieces)
34,298
Gross premiums
written (RON)
Gross claims paid
(RON)
2,237,967
73,827
Q1 2013
333,860
37,042
2,493,767
36,904
Q1 2014
1,085,078
386,408
32,822,850
234,934
Q1 2015
1,524,491
419,937
34,599,272
1,324,975
Q1 2016
1,640,783
469,927
40,254,018
326,490
44
Figure 34 Evolution of compulsory home insurance
1.800.000
45.000.000
1.600.000
40.000.000
1.400.000
35.000.000
1.200.000
30.000.000
1.000.000
25.000.000
800.000
20.000.000
600.000
15.000.000
400.000
10.000.000
200.000
5.000.000
0
0
T1 2012
T1 2013
T1 2014
T1 2015
T1 2016
For the home insurance market as a whole (compulsory and voluntary), the first quarter of 2016 saw
a decline in gross premiums written (approximately -27.20%) and in the number of new contracts,
while the number of contracts in force decreased by about 38%.
Table 41 Evolution of home insurance (compulsory and voluntary)
Period
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
Number of contracts in force at Number of new contracts,
the end of the reporting period concluded in the reporting
(pieces)
period (pieces)
4,557,665
3,686,012
3,370,890
3,348,609
2,945,446
663,436
667,353
855,324
1,273,003
789,324
Gross
premiums
written
(RON)
121,326,675
133,800,006
120,556,106
155,011,199
112,845,859
Gross claims
paid (RON)
14,654,049
17,017,221
13,222,001
14,943,886
12,197,889
45
Figure 35 Evolution of home insurance (compulsory and voluntary)
5.000.000
180.000.000
4.500.000
160.000.000
4.000.000
140.000.000
3.500.000
120.000.000
3.000.000
100.000.000
2.500.000
80.000.000
2.000.000
60.000.000
1.500.000
1.000.000
40.000.000
500.000
20.000.000
0
0
T1 2012
T1 2013
T1 2014
T1 2015
T1 2016
46
II. INSURANCE AND/OR REINSURANCE BROKERS
According to data centralized on 31 March 2016, a total of 331 insurance and/or reinsurance brokers
conducted the activity of intermediation in insurance and/or damage settlement.
II.1. Insurance intermediation business
In the first three months of 2016, the premiums intermediated by insurance brokers (RON
1,539,935,313) accounted for 65.05% of gross premiums written by insurers. Compared to the
similar period of 2015, there was an increase by 19.26% in premiums intermediated for both
categories of insurance.
 Premiums intermediated for general insurance amounted to RON 1,501,201,350, accounted
for 97.48% of total premiums intermediated and the intermediation degree was 75.36%.
 Premiums intermediated for life insurance, in the amount of RON 38,733,963, had an
intermediation degree of 10.32%.
Table 42 Insurance intermediation degree
Period
Intermediated premiums (RON)
Total
GI
Intermediation degree (%)
LI
Total
GI
LI
31.03.2012
829,147,579
802,588,157
26,559,422
38.29
46.29
6.150
31.03.2013
965,271,666
934,164,565
31,107,101
45.39
54.72
7.41
31.03.2014
1,120,775,625
1,092,584,190
28,191,435
53.86
64.32
7.37
31.03.2015
1,287,316,779
1,255,418,013
31,898,766
57.82
69.16
7.76
31.03.2016
1,539,935,313
1,501,201,350
38,733,963
65.05
75.36
10.32
Analyzing the structure of premiums intermediated by insurance brokers on classes of general
insurance, it is noticed that, in the first quarter of 2016, a significant share in total premiums
intermediated for general insurance (RON 1,539,935,313), was held by the following classes:
1. class A10. Motor vehicle liability insurance (MTPL+CLI) accounts for 58.95% (RON 884,953,283);
2. class A3. Land vehicles insurance (Casco) accounts for 19.45% (RON 291,988,986);
3. class A8. Insurance against fire and other natural disasters accounts for 9.12% (RON 136,873,343);
4. other classes held a share of 12.48% (RON 187,385,738) of total general insurance premiums
intermediated.
47
Figure 36 Structure on general insurance classes of premiums intermediated on 31 March 2016 (%)
Figure 37 Structure on general insurance classes of premiums intermediated on 31 March 2015 (%)
Analyzing the structure of premiums intermediated by insurance brokers on classes of life
insurance, it is noticed that, in the first quarter of 2016, the largest share is held by the following
classes:
1. class C1 "Life insurance, annuities and supplemental life insurance", amounting to RON
32,881,975, respectively 84.89% of total premiums intermediated for the life insurance
category;
2. class C3 "Life insurance and annuities related to investment funds (unit-linked): RON
3,488,846, respectively 9.01% of total premiums intermediated for the life insurance
category;
The other life insurance classes accounted for 6.01% of total premiums intermediated.
48
Figure 38 Structure on life insurance classes of premiums intermediated on 31 March 2016 (%)
Figure 39 Structure on life insurance classes of premiums intermediated on 31 March 2015 (%)
006
007
087
Clasa C1
Clasa C3
Altele
49
Table 43 Top 10 insurance brokers, depending on premiums intermediated
No.
1
2
3
4
5
6
7
8
9
10
Broker
name
SAFETY BROKER DE ASIGURARE S.R.L.
MARSH - BROKER DE ASIGURARE-REASIGURARE S.R.L.
TRANSILVANIA BROKER DE ASIGURARE S.R.L.
DESTINE BROKER DE ASIGURARE-REASIGURARE S.R.L.
INTER BROKER DE ASIGURARE S.R.L.
DAW MANAGEMENT - BROKER DE ASIGURARE S.R.L.
CAMPION BROKER DE ASIGURARE S.R.L.
UNICREDIT INSURANCE BROKER S.R.L.
AON ROMANIA BROKER DE ASIGURARE - REASIGURARE
S.R.L
PORSCHE BROKER DE ASIGURARE S.R.L.
Total (1-10)
Total
TOTAL LI
TOTAL GI
266,629
3,188,758
143,355
1,042,478
130,801
8,782
1,387,937
228,775
123,333,729
109,793,823
91,467,652
72,034,020
70,172,641
62,222,585
50,154,056
40,785,897
709,497
33,490,703
7,107,012
38,733,963
TOTAL
Market
LI + GI
share (%)
123,600,358
8.03%
112,982,581
7.34%
91,611,007
5.95%
73,076,498
4.75%
70,303,442
4.57%
62,231,367
4.04%
51,541,993
3.35%
41,014,672
2.66%
34,200,200
2.22%
33,871,868
33,871,868
2.20%
687,326,974 694,433,986 45.10%
1,501,201,350 1,539,935,313 100.00%
II.2. Revenues obtained from the insurance intermediation business
Revenues obtained from the insurance intermediation business, according to quarterly reports sent by
350 insurance brokers for 31 March 2016, recorded a value of RON 262,554,773, in nominal growth by
9.37% compared to the same period of 2015 (RON 240,063,726).
Table 44 The evolution of intermediation revenues
Period
31.03.2015
GP
W
(R
ON
)
2,2
26,
27
3,5
92
Re
ve
nu
es
Int
fro
er
m
me
the
dia
int
ted
er
pre
me
mi
dia
um
tio
s
n
(R
bus
ON
ine
)
ss
(R
ON
)
1,2 24
87, 0,0
31 63,
6,7 72
79 6
Int
er
me
dia
ted
pre
miu
ms
/GP
W
(%)
57.
82
%
50
31.03.2016
2,3
67,
38
7,5
50
1,5
39,
93
5,3
13
26
2,5 65.
54, 05
77 %
3
The structure of revenues obtained from the insurance intermediation business, according to
reports sent by insurance brokers, for 31 March 2016:
a) revenues from the negotiation of insurance contracts, recorded a value of RON 257,095,843,
increasing compared to the similar period of 2015 by 9.55%;
b) revenues from risk inspections, amounting to RON 5,028, up 100% compared to the previous
period of 2015;
c) revenues from damage settlement, amounting to RON 3,918,646, down 0.08% compared to the
similar period of 2015;
d) revenues from damage inspections, amounting to RON 47,019, down 77.33%, compared to the
same period of 2015;
e) revenues from other activities in relation to the line of business, amounting to RON 1,493,265, up
19.97% compared to the same period of 2015.
51
List of figures
Figure 1 The evolution of gross premiums written in 2012 – 2016 ................................................................... 4
Figure 2 GPW distribution for general insurance in the 8 regions of development of Romania ........................ 6
Figure 3 GPW distribution for life insurance in the 8 regions of development of Romania .............................. 6
Figure 4 Evolution of the volume of gross premiums written on general insurance classes (million RON) ....... 9
Figure 5 Structure dynamics on general insurance classes ............................................................................. 10
Figure 6 Structure dynamics on life insurance classes .................................................................................... 11
Figure 7 Evolution of the volume of gross premiums written on life insurance classes (million RON) ............ 12
Figure 8 The evolution of the gross claims paid including maturities and redemptions for general and life
insurance (million RON) ......................................................................................................................... 13
Figure 9 Structure dynamics on classes of gross claims paid for the general insurance category ................... 15
Figure 10 Evolution of the volume of GI gross claims paid (million RON) ....................................................... 15
Figure 11 Quarterly evolution of claims ratio and combined claims ratio for the main general insurance
classes during 2014-2016 (Q1 of each year) ........................................................................................... 17
Figure 12 Quarterly evolution of the value of acquisition and administration expenses and expenses with
commissions during 2014 - 2016 (first quarter) ..................................................................................... 18
Figure 13 Evolution of expenses with commissions in gross premiums written ............................................. 19
Figure 14 Additional requirement of capitalization following the move to SII ............................................... 25
Figure 15 Additional capitalization resulting from the move to Solvency II .................................................... 25
Figure 16 The evolution of total assets and liabilities of insurance companies .............................................. 26
Figure 17 The evolution of Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR) . 26
Figure 18 The evolution of eligible own funds to cover the solvency capital requirement ............................. 27
Figure 19 The structure of eligible own funds to cover SCR (D1) .................................................................... 27
Figure 20 The structure of eligible own funds to cover SCR (31 March 2016) ................................................. 28
Figure 21 The distribution of insurance companies depending on SCR/MCR rate on 31 March 2016 ............. 28
Figure 22 The evolution of gross premiums written for MTPL during 2010-2015 ........................................... 30
Figure 23 The evolution of gross premiums written for MTPL quarterly during 2015-2016 ............................ 30
Figure 24 Degree of concentration of the MTPL market ................................................................................. 34
Figure 25 The quarterly evolution of MTPL claims paid on bodily injuries (in thousand RON) ........................ 34
Figure 26 The quarterly evolution of MTPL material damages (in thousand RON) ......................................... 35
Figure 27 The evolution of the average premium and average claim during 2010-2015 ................................. 36
Figure 28 The evolution of the average premium and average claim during 2015-2016 - quarterly ............... 36
category B0 ........................................................................................................................................... 41
category BM .......................................................................................................................................... 42
bonus/malus category B0 ...................................................................................................................... 42
bonus/malus category BM .................................................................................................................... 43
Figure 33 Evolution of the number of contracts and the volume of gross premiums written for voluntary
home insurance during 2012-2016 (quarterly)....................................................................................... 44
Figure 34 Evolution of compulsory home insurance ....................................................................................... 45
Figure 35 Evolution of home insurance (compulsory and voluntary) ............................................................. 46
Figure 36 Structure on general insurance classes of premiums intermediated on 31 March 2016 (%) ........... 48
Figure 37 Structure on general insurance classes of premiums intermediated on 31 March 2015 (%) ........... 48
Figure 38 Structure on life insurance classes of premiums intermediated on 31 March 2016 (%) .................. 49
Figure 39 Structure on life insurance classes of premiums intermediated on 31 March 2015 (%) .................. 49
52
List of tables
Table 1 Dynamics of allocation on insurance segments during 2012 - 2016 ..................................................... 4
Table 2 Dynamics of gross premiums written on insurance classes in the period 2012 - 2016 ......................... 4
Table 3 The companies with the largest volumes of gross premiums written and their share in total market
(general and life insurance) ..................................................................................................................... 7
Table 4 Ranking of insurance companies based on gross premiums written for general insurance in the first
quarter of 2016 ....................................................................................................................................... 8
Table 5 Structure on general insurance classes ................................................................................................ 9
Table 6 Ranking of insurance companies based on gross premiums written for life insurance in 2016 .......... 10
Table 7 Structure on life insurance classes ..................................................................................................... 12
Table 8 The dynamics of the gross claims paid, including maturities and redemptions for general and life
insurance, during 2012-2016 ................................................................................................................. 13
Table 9 Insurance companies with the largest volume of gross claims paid for general insurance ................. 14
Table 10 Insurance companies with the largest amount of gross claims paid, maturities and redemptions for
life insurance ......................................................................................................................................... 16
Table 11 Quarterly evolution of claims ratio and combined claims ratio for the main general insurance
classes ................................................................................................................................................... 18
Table 12 Quarterly evolution of the value of acquisition and administration expenses and expenses with
commissions during 2014 - 2016 (first quarter) ..................................................................................... 18
Table 13 Evolution of expenses with commissions in gross premiums written in the period 2014 - 2016 (first
quarter) ................................................................................................................................................. 19
Table 14 Structure of gross technical reserves for general insurance on 31 March 2016 compared to 31
December 2015 ..................................................................................................................................... 20
Table 15 Structure of gross technical reserves for the life insurance category, on 31 March 2016 ................. 21
Table 16 Structure of gross technical reserves for the life insurance category, on 31 December 2015 ........... 21
Table 17 Liquidity ratio for each of the insurance categories on 31 March 2016 ............................................ 21
Table 18 Liquidity ratio for each of the insurance categories on 31 December 2015 ...................................... 22
Table 19 The evolution of GPW and net reinsurance premiums during 2012-2016 (first quarter) for GI ........ 22
Table 20 The evolution of GCP and net reinsurance GCP during 2012-2016 (first quarter) for GI ................... 22
Table 21 The evolution of gross technical reserves and net technical reserves in reinsurance during 20122016 (first quarter) for GI ...................................................................................................................... 23
Table 22 The evolution of GPW and net reinsurance premiums during 2012-2016 (first quarter) for LI ......... 23
Table 23 The evolution of GCP and net reinsurance GCP during 2012-2016 (first quarter) for LI .................... 24
Table 24 The evolution of gross technical reserves and net technical reserves in reinsurance during 20122016 (first quarter) for LI ....................................................................................................................... 24
Table 25 The evolution of gross premiums written for class A10 (MTPL+CLI) ................................................. 29
Table 26 The pace of change of MTPL market indicators from quarter to quarter during 2015-2016 ............. 30
Table 27 Number of contracts on natural and legal persons .......................................................................... 31
Table 28 The share of the number of contracts concluded in the period in total contracts depending on the
contracted period - quarterly 2015-2016 ............................................................................................... 31
Table 29 The share of the number of contracts concluded in total contracts depending on the contractor
(natural or legal person) -quarterly 2015-2016 ...................................................................................... 32
Table 30 Ranking of insurance companies based on gross premiums written for MTPL in the first quarter of
2016: ..................................................................................................................................................... 32
Table 31 Evolution of market shares recorded on MTPL for 2011-2015: ........................................................ 33
Table 32 The evolution of technical reserves quarterly during 2015 - Q1 2016 (thousand RON) ................... 35
53
Table 33 The situation on companies of claim files paid in Q I 2016 (the current year and the previous years)
.............................................................................................................................................................. 35
Table 34 The average premium annualized in RON at market level in the last consecutive 5 quarters .......... 37
Table 35 Detailing the method of calculation of the average premium for Q1 2016 ...................................... 37
Table 36 The evolution of average claim for natural persons during 2015-2016 ............................................ 38
Table 37 The evolution of average claim during 2015-2016 ........................................................................... 38
Table 38 The evolution of average claim per total during 2015-2016 ............................................................. 39
Table 39 The dynamics of contracts and the volume of gross premiums written for voluntary home insurance
during 2012-2016 (quarterly) ................................................................................................................. 43
Table 40 Evolution of compulsory home insurance ........................................................................................ 44
Table 41 Evolution of home insurance (compulsory and voluntary) ............................................................... 45
Table 42 Insurance intermediation degree .................................................................................................... 47
Table 43 Top 10 insurance brokers, depending on premiums intermediated ................................................. 50
Table 44 The evolution of intermediation revenues ...................................................................................... 50
54

evolution of the insurance market in the 1st quarter of 2016

Transcription

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