1. RECENT DEVELOPMENTS & CHALLENGES FOR THE ROMANIAN PROPERTY INSURANCE MARKET
Adrian MARIN,
President of UNSAR

2. IN 2017, TOTAL RECONFIGURATION
UNSAR, A new identity
2017 Strategy
IN 2017, TOTAL RECONFIGURATION
paradigm change
extended team
proactivity
representative voice for the industry
OBJECTIVES
Stabilization and development of the insurance market
Regaining the consumer confidence.
SPECIAL ACTIONS
Own programs for financial education and traffic safety

3. The insurance market, 2016 Challenges
Solvency II - tighter capital requirements on solvency, regulatory and quality.
Astra and Carpatica Bankruptcy, two companies holding about 50% of the MTPL market and over 15% market share.
Excessive reliance on auto insurance, GWP auto portfolio = 75% of General insurance and 60% of the total market (ASF data, 3Q 2016).
Protests of
carriers
MTPL tariff capping by E.G.O.
UNSAR notified the EU
RISK OF INFRINGEMENT
FOR ROMANIA

4. Romania, Property insurance market evolution
Class VIII. Insurance against fire and other natural disasters,
GWP in 2015 = 14% of total P&C, increasing by 1.18% compared to 2014.
2016T3 vs 2015T3
✱ GWP -4,2%
2016 Estimation: - 5% - 0%

5. Romania, Property insurance market evolution
Class IX. Property damage insurance
GWP in 2015 = 2,35% of total underwritings for general insurance
2016T3 vs 2015T3
✱ includes technical insurance (engineering, crops &livestock and accidental damage), GWP -1%
2016 Estimation: Decreasing or remains constant.

6. Facultative home insurance, negative trend in 2016
2016T3 vs 2015T3:
Facultative policies
GWP : -7%!
No of policies in force: -11%
Average premium: +56% (256 Ron)
Mandatory policies
1.75 mil
No of policies in force: +12%
GWP: + 13%
The volatility of legislative environment, the approach based only on constraints and decrease of distribution have negative impact of facultative home insurances.

7. The importance of home insurance for the safety of citizens
In case of an earthquake of the same scale as the one in 1977, the residential damage would amount to about billion EUR (AON simulation).
Very low level of home insurance penetration is a real problem in Romania and have a strong negative impact in case of a catastrophic event.

8. Sustainability of the insurance system for catastrophic risks, a priority for the insurance industry and authorities
Sustainability of the compulsory insurance scheme (penetration, sufficiency of the premium)
The protection of the population decreases with decreasing the number of facultative home insurance policies
Preparing the insurance industry and the general public for the management of claims after a major earthquake.

9. UNSAR, in working projects for home insurance
Communication projects UNSAR will launch its own financial education program. Financial education is essential for the insurance consumer and is one of the solutions to the home insurance market development
Legal amendments UNSAR sustains with PAID corrections for Law 260/2008 concerning mandatory home insurance (removing the restriction for facultative insurance of buildings that can not be compulsorily insured, measures to increase the coverage, distribution channels)
Management of claims in case of massive disaster UNSAR sustains PAID to design an improved process to handle catastrophic Nat Cat claims

10. GOVERNMENT & PARLIAMENT
Collaboration between state - insurers - citizen, key to proper management of catastrophic risk
Partnership between all actors of the system
CITIZENS
INSURANCE COMPANIES
GOVERNMENT & PARLIAMENT