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A US-based large company to enter the Romanian RCA market

A US-based large company to enter the Romanian RCA market

The domestic compulsory motor insurance policies (RCA) market is becoming more and more attractive for important players.

”We will probably have, by mid-year, yet another big player to enter the Romanian market. It is a player coming from the United States, perhaps through a branch,” Cornel Coca Constantinescu, Vice-President of the Financial Supervisory Authority (ASF), stated in a press conference on Tuesday, hotnews.ro informs.

The top 10 brokers have a 45 percent share of the total premiums, which allows a development in the future, compared to the insurance market where there is a concentration.

The latest ASF data show that Safety Broker (7.34 percent), Marsh (7.15 percent) and Transilvania Insurance Broker (5.59 percent) were the first three places in the top 10 insurance brokers in depending on the volume of premiums in the first 9 months of 2017.

On the other hand, the insurance market in Romania is dependent on RCA sales. The total amount of insurance premiums written for compulsory motor insurance in the first nine months of 2017 reached RON 2.86 billion.

In the first nine months of 2017 there is a significant concentration, the first two insurers – City Insurance and Euroins – accounted for almost 59 percent (compared to 38 percent in 2016) of the total gross written premiums related to RCA insurance in Romania.

”Of the nine players we have on the RCA market currently, only 5 players are actually active, because the others are only operational and have a market share of 1 percent or even less,” Cornel Coca Constantinescu said.

 

About Anca Bernovici