Economica.net – ASF, the first official data. How much did RCA end up costing, how many drivers drive without insurance and how many Romanians solved the RCA problem directly with companies from outside the country. Historical record

RCA, the most important insurance line for the Romanian market, followed a somewhat predictable evolution. The average premium increased slightly, considering that since April the legal act that fixes the maximum price at the level of February 28 has already been operating. The number of contracts concluded in a single year also increased, this indicator even marking a historic level: for the first time it reaches 8 million annualized units. The sales of the two companies registered and supervised outside the country (Axeria Yard and Hellas Direct) made the difference. Without the two, we would have had a decrease in annualized sales (no: ASF performs the calculation in annual units, transforming the contracts into shorter terms), with the two there is an increase of about 12%. Even so, compared to the author’s fleet in Romania, it turns out that about 2 million vehicles do not have RCA. ASF does not publish the market shares according to the number of contracts sold, but, considering that Axeia and Hellas together hold about 15% of the Gross Subscribed Premiums (PBS), we can estimate that they have at least 18-20% of the total contracts, given that the prices they sell at are below the market average. So, we are talking about at least 1.6-1.7 million contracts sold by the nine, a considerable number. Moreover, Economica anticipated the level at which the two are.

Read also: EXCLUSIVE Almost 2 million drivers escaped RCA’s care with two companies that sell directly from outside the country. ASF Vice President: There are intentions of other companies to enter Romania. It’s about normalcy

The average premium went up by about 8%, reaching 977 lei for individuals and 1,906 lei for legal entities. The concentration at the level of PBS is significant, the first two companies, i.e. Groupama and Allianz, own and control almost 50% of the market (26% Groupama and slightly more than 20% Allianz Țiriac). The third player, Grawe, only comes in at 9.7%.

How insurance has evolved in 2023

Below is the summary of the ASF report on the insurance market. The entire report can be consulted HERE

At the end of December 2023, 25 insurance companies were authorized by the ASF to carry out activity on the insurance market.

In 2023, insurance companies authorized and regulated by the ASF wrote gross premiums worth approximately 18.2 billion lei1, an increase of approximately 10% compared to the value recorded in 2022. The insurance market in Romania remains oriented towards insurance activity general, which has a share of 84% of the total gross premiums subscribed (PBS) by insurance companies authorized and regulated by the ASF, maintaining a level similar to that recorded in the previous year. From the total gross premiums subscribed in 2023 (18.2 billion lei), the gross premiums subscribed by insurance companies authorized and regulated by the FSA on the territory of other states recorded a volume of approximately 114 million lei, representing approximately 0.6% of the volume total premiums subscribed, down by about 25% compared to the previous year (about 153 million lei).

The volume of gross premiums written for the life insurance segment stood at 3 billion lei, up 12% compared to 2022 (2.65 billion lei). The positive evolution was mainly supported by the approximately 50% increase in subscriptions for class C3 (Life insurance and annuities, linked to investment funds), partially counterbalanced by the decrease in the volume of gross premiums written for class C1 (Life insurance, annuities and additional life insurance: -4%).

In 2023, the high dependence of the local market on motor insurance is maintained, class A3 (Land transport insurance, other than rail) and class A10 (Motor civil liability insurance, including carrier liability) representing approximately 76% of the total of gross premiums written for general insurance activity and 64% of the total gross premiums written by
insurance companies authorized by ASF in 2023.

A vulnerability of the insurance market in Romania remains the high degree of concentration, both from the perspective of exposure to the main classes of insurance, and from the point of view of the significant size of the market shares held by a relatively small number of insurance companies.

The value of the gross premiums subscribed for car insurance (class A3 and compulsory car civil liability insurance – RCA, including the activity carried out by the branches present on the Romanian market) was around 13 billion lei in 2023, of which 28% of the volume was subscribed for optional car insurance, and 72% represent subscriptions related to mandatory car insurance. The degree of concentration is high in both the optional and compulsory motor insurance (RCA) markets.

Thus, the first 3 insurance companies add up to a market share of 74% from the perspective of the volume of gross premiums written for class A3 (without branches). The first 3 companies on the RCA market hold a cumulative share of 57% of the RCA insurance portfolio in Romania (including branches), down compared to previous periods, due to the advance