“The Romanian market has major potential for insurance in general and for life insurance in particular,” says Benjamin Turquin, CEO of BRD Asigurari de Viata and Country Manager for BRD Asigurari, the commercial brand of BRD Asigurari Generale and BRD Asigurari de Viata.

With 83% of the money going into non-life insurance and motor insurance standing for 62% of the total insurance premiums, the Romanian insurance market is significantly different compared with other European markets, where most insurance premiums come from life insurance. At the same time, the average life insurance premium per inhabitant is ten times lower than in Germany or France and two times lower than in the Czech Republic or Poland.

However, these differences also mean that the Romanian market is full of promises and it will keep on growing in the future, believes Benjamin Turquin.

One reason for the underdevelopment of the Romanian life insurance market is the “short-term orientation”, but this is starting to change.

“We care little about what will happen tomorrow and rely on “Doamne ajuta!” (e.n. - God help!) to protect us. <<Why should I pay today to protect from something that may not happen?>>. I see a major evolution in the awareness. People frequently wonder how they can protect their families and ensure their financial future. This is our role as an insurance company, to offer a variety of solutions fit for different needs,” explains Benjamin Turquin.

Read more in the Q&A interview below:

 

Please tell us a bit about the BRD Group’s presence in the Romanian insurance market: what segments of the market are you active in and how has the business evolved in recent years?

Benjamin Turquin: BRD Group’s presence in the Romanian insurance market started with life insurance in 2009 through the set-up of BRD Asigurari de Viata, the life and savings insurance company in Romania of Société Générale group, which is one of Europe's leading financial services groups. Active in the real economy for 160 years, with a strong position in Europe and strongly connected to the rest of the world, Société Générale has more than 126,000 employees in 65 countries, advising and serving 25 million individual, corporate and institutional clients worldwide every day.

BRD Asigurari de Viata has grown and it is ranked as the fourth-biggest life insurer in the Romanian market, with almost 10% market share (data as of December 2023). We now cover both life and general insurance areas, with the launch in 2018 of BRD Asigurari Generale in Romania.

Strong because of our 15 years of experience and our 170 committed employees, I still consider our company as a start up with a resilient activity. This enables us to address the ambitious development plan we have: strengthen our bancassurance model while opening our product range to new distribution channels (brokers, online, bancassurance).

Indeed, BRD Asigurari offers an extended range of life and property & casualty insurance solutions for Romanian individuals and companies, mainly distributed through BRD - Groupe Société Générale network.

BRD Asigurări de Viață steadily diversified its product range, from credit life insurance to life insurance with investment component solutions, such as our latest launched LongVITA INVEST. The non-life activity developed with BRD Asigurari Generale in the past years fully completes our offer during the key life moments of our clients. 

 

How is the life insurance market in Romania compared with other countries in Europe? How do you expect it to evolve in the following years?

Benjamin Turquin: The Romanian market has a major potential for insurance in general and for life insurance in particular. Non-life insurance in Romania represents 83% of the market, mainly driven by motor insurance, standing for 62% of the total insurance premiums. This is a major difference compared with other European markets, where most insurance premiums come from life insurance.

Even though domestic economic growth strengthened the life insurance market, the average life insurance premium per inhabitant is still lagging behind. Indeed, it is ten times lower when compared with Germany or France and half compared with Czech Republic or Poland.

Several factors led us here from my perspective.

First is the Romanian history with insurance companies, which challenged the trust of clients in this sector. To fulfill our mission of protecting and assisting our clients, we focus on our role as a reliable and responsible insurer.

The second reason is cultural as Romania has a short-term orientation. We care little about what will happen tomorrow and rely on “Doamne ajuta!” (e.n. - God help!) to protect us. “Why should I pay today to protect from something that may not happen?”. I see a major evolution in the awareness. People frequently wonder how they can protect their families and ensure their financial future. This is our role as an insurance company, to offer a variety of solutions fit for different needs.  

The Romanian high-risk adversity in investment is the third reason why life insurance has not reached its full potential yet. Romanian investors are largely directly investing in fixed-income bonds. The offer in terms of investment tools also remains limited. In BRD Asigurari de Viata, we propose a large range of funds, both Romanian and international, embedded with life insurance and offering as main benefits: no tax on the benefits, free choice of beneficiaries, protection of the initial invested amount in case of death.

The Romanian market is full of promises and it will keep on growing in the future.

 

Are Romanians aware of the benefits of life insurance products? What types of insurance coverage are they most interested in this segment?

Benjamin Turquin: The growing awareness among Romanians in financial planning and education is contributing to a greater interest in life insurance products and their benefits. BRD Asigurari de Viata is collaborating with actors in the banking & insurance industry to increase the level of financial knowledge.

Life insurance products offer financial stability and protection to loved ones. These benefits are less tangible, so they can be harder to perceive compared with home or travel insurance coverage. Transparency to customers on the guarantees and clarity of terms and conditions are the keys to the further development of the life insurance market.

From our experience and life product range, our individual clients are mostly interested in credit life insurance and life insurance with an investment component.

The life insurance attached to a credit, whether it be a mortgage, consumer loan, or credit card, is in line with the natural appetence of Romanian people for owning their home. It comes as a necessity for credit borrowers to protect their loved ones. The interest in this coverage is even clearer when sold online together with the loan. Thus, with BRD, each borrower can be properly protected, when contracting a loan.

Our clients are also interested in the benefits of our life insurance products with an investment component, which, along with the many benefits listed above, offer portfolio diversification. Indeed, our clients have the possibility of investing in several funds at the national and international level while benefitting from exposure to the capital market. They can invest and be protected at the same time.

When looking at our corporate clients, their main interest lies in our employee benefit offer through group health insurance and group term life insurance. This is for them both the occasion to increase employee retention and benefit from tax deductibility.

In my opinion, subscribing to a life insurance policy is an act of responsibility to protect the future of your dearest ones.

 

Which are the most popular life insurance products offered by BRD Asigurari de Viata and what are their benefits?

Benjamin Turquin: The strength of the bancassurance model that is part of our DNA resides in our capacity to be present in every key life moment of our clients’ lives. From the acquisition of their first home to the birth of their children while planning for their life projects.

For this exact reason, our most popular products are life insurance products linked with credits. We confirmed the interest of clients for such coverages after launching our life insurance product linked with BRD online consumer loans.

Our life insurance products with an investment component are also very popular as they answer the various needs of our clients. They offer similar advantages as the benefits are tax-free; the insured can choose the beneficiaries they see fit and benefit from the protection of the initial invested amount in case of death.

Eduplan, one of our life insurance with investment component products, is very popular as it offers the possibility of accumulating capital dedicated to the future of a child through regular payment.  The product offers either a personal or automated investment strategy, depending on the needs of the client. BRD Asigurari de Viata covers, in case of death of the insured and until maturity of the contract, the regular payment for the construction of the capital dedicated to the kid’s future.

Invest Benefit + and LongVITA INVEST are highly appreciated as portfolio diversification options. Indeed, in case of the death of the insured, BRD Asigurari de Viata covers the invested capital devaluation up to EUR 200,000.

Our corporate clients come to us for their employee benefits packages, as we offer group life and health insurance meant for companies and small businesses. They provide financial protection in case of unforeseen events for employees. It is now a standard request from employers to ensure employees’ well-being and retention. It is part of the expected incentive packages, increasing employees’ satisfaction, engagement and loyalty.

 

What do you think is needed to stimulate the development of the life insurance market in Romania?

Benjamin Turquin: Stimulating the development of the life insurance market in Romania requires a combination of factors aimed at addressing various challenges and capitalizing on growth opportunities.

The first point is ensuring a long-term financial perspective for consumers. There are two main levels of action. Short and medium-term, it is about keeping a favorable fiscal environment for life insurance with an investment component in comparison with other investment solutions. This will encourage consumers to diversify their investment portfolio. Considering a long-term perspective, it is crucial to increase financial awareness. Educational campaigns and initiatives promote both financial planning and risk management, helping people make informed decisions about life insurance products.

Another important leverage for market growth is the accessibility of its products. The key lies in the simplification of processes for subscription, modification and claims both online and offline. As the interest in life insurance products rises, insurers will invest in digital solutions to meet clients’ expectations. This virtuous cycle will improve accessibility and customer engagement.

 

How would you describe the current situation in the general insurance market in Romania and how do you expect it to evolve in the following years?

Benjamin Turquin: Due to the awareness regarding motor, home, and health insurance, the market is very price-sensitive and easily impacted by inflation and other market disturbances.

The general insurance market stabilized after the bankruptcies in the motor insurance segment. The regulatory framework enabled to minimize the impact on customers and led to a new order on the market.

Regarding home insurance, the penetration rate increases slower than the real estate risk suggests, stagnating close to 20% for mandatory insurance. Awareness of risk is key for this type of insurance; indeed, after the important earthquakes that happened in the region in 2023, there was a sharp increase in PAD policies.

Strong from the awareness clients have of motor and home insurance products, the general insurance sector in Romania is undergoing digital transformation. This will lead to a clear simplification of client experience. The emergence of insurtechs in Romania is likely to accelerate this already ongoing process and push insurers out of their comfort zone. This is very good news for clients, resulting in an enhanced customer experience.

Insurers will have to embrace innovation and digital technologies and focus on customer-centric strategies to thrive in this evolving landscape.

 

Which are the most dynamic segments in the local general insurance market and what segments have been underperforming?

Benjamin Turquin: The most dynamic segment in the local general insurance market is motor insurance, particularly mandatory third-party liability insurance (known as RCA). It represents more than half of the non-life insurance market.

Home insurance has a significant potential. Indeed, even though PAD is compulsory, we face the situation in which only 1 in 5 Romanians have their home insured. It is a dynamic segment of the Romanian market, with an increased demand linked with increasing construction activity and property ownership.  The volumes of this type of insurance have increased significantly by 22% in 2023 as compared to 2022. BRD Asigurari Generale is very active in the home insurance market, with an 85% increase in volume in 2023 as compared to 2022. Other segments are also highly developing, like travel insurance, for example. Overall, while certain segments within the Romanian general insurance market are experiencing growth and dynamism, others may require strategic initiatives to stimulate demand and improve market penetration. BRD Asigurari Generale always carefully assesses market dynamics, customer preferences, and competitive pressures to capitalize on growth opportunities and come up with products that serve the customers’ needs.

 

What is BRD Insurance’s approach to the general insurance market? How are you looking to consolidate your position?

Benjamin Turquin: Our strategy revolves around capturing the strength of the bancassurance model while creating new insurance products and expanding into new distribution channels. While we recognize the significant potential for growth, achieving this requires also substantial investments.

Our focus was on products embedded with banking products. We have developed travel and means of payment insurance linked with daily banking products to offer benefits to BRD clients.

Along the way, we have added our home insurance linked with BRD mortgage loans to offer comprehensive protection to BRD clients for their homes and families.

Strong from our expertise, we have launched a home insurance product available for any BRD client, whether owning or renting and we are looking to develop further in this direction.

We are targeting to develop new products offering more insurance coverages and to diversify our distribution channels (brokers and online bancassurance).

 

How important are innovation and digitization in the insurance sector? Can you give us examples of new products you have launched in recent years to address new consumer needs?

Benjamin Turquin: Innovation and digitalization have become fundamental drivers of transformation in the insurance sector, enabling insurers to adapt to evolving customer expectations, market dynamics, and regulatory requirements.

The aim is to address customers’ needs for simplified and accessible products and information. It is now a must-have to be present online with our offers. This is why we created with BRD an online flow offering both consumer loans and the attached credit life insurance in a smooth process.

When in the agency, we are unrolling e-signature processes so that BRD clients can have access to their documents at any given time.

Innovation also comes from product types and solutions offered to clients. We are proud of our latest launched product, LongVITA INVEST, life insurance with an investment component. It is the first life insurance product in Romania that offers the possibility to invest in structured funds, giving access to the performance of capital markets while benefitting from capital and yield guaranteed at maturity. For example, LongVITA INVEST, is offering capital protection at maturity of the structured fund invested in.

We strive to use digitization to offer information and accessibility to our products for our clients, where they need to, when contacting our distributors or online.

 

What do you think differentiates BRD Asigurari Generale and BRD Asigurari de Viata from other companies in the local insurance market?

Benjamin Turquin: What sets us apart from other insurance companies on the market is our robust bancassurance model with BRD - Groupe Société Générale, together with the strong synergies created as part of a powerful and trustful French group.

Our team of committed employees strives to deliver our clients transparent information together with reliable and reactive solutions regarding our products and customer support.

We offer insurance solutions with clear benefits and information to our clients to accompany them in their key life moments. From protecting the home and credit of our clients’ to proposing solutions to plan for their kids’ future and innovative life insurance with investment components. 

Our clients have simplified access to our customer support through one email and phone number. Our internal CRM enables us to identify quickly the clients and offer them the needed answers in due time.

We carefully monitor Key Performance Indicators, such as claims answers timeline to optimize the journey of our clients and their beneficiaries.

 

How is sustainability integrated into BRD Asigurari de Viata activity?

Benjamin Turquin: In BRD Asigurari de Viata, we consider companies have an important role to play in sustainability.

Corporate Social Responsibility (CSR) covers 3 main categories: environmental, social, and economic, and we have translated them into finding ways to be a responsible investor, insurer, and employer.

As a Responsible Investor, we are working closely with group Société Générale to support concrete and public commitments for sustainable finance. We thrive at making sustainability an important driver in our asset management strategy; indeed, the CSR dimension is systematically taken into account in our offer.

As a Responsible Insurer, our life insurance with investment components offers the possibility to invest in funds promoting social & environmental responsibility. We also work to ensure a transparent and customer-centric approach and provide clarity on fees charged and amounts covered by our guarantees to make the insurance world simpler and easier to understand.

Concrete and individual actions are taken on a daily basis. For example, in our offices, single-use plastic cups have been replaced by mugs and glasses, and our employees participate in selective recycling. From a governance perspective, we are limiting promotional materials and promoting products from EU countries without plastic, collaborating with suppliers aligned with our CSR ambition (on purchasing).

As a Responsible Employer, we promote the quality of life at work, diversity, inclusion, skills development, and conduct business responsibly.

Training and awareness-raising activities are delivered throughout the year – our employees have been trained on climate changes, and we are just beginning our journey with the deployment of the 2-tons workshop to spot and promote individual actions to complete ours.

To conclude, group Société Générale ambition and our goal, as part of the group, is building together with our clients, a better and sustainable future through responsible and innovative financial solutions.

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Benjamin Turquin has been the Country Manager of Société Générale Assurances in Romania since June 2022. He started his career in group Société Générale in 2001 as Inspector and he continued to various positions as Managing Director of corporate clients for 4 years, CEO of the consumer finance subsidiary in Croatia for 2 years, Deputy Head of Retail in Croatia for 3 years and then Head of Retail in BRD Romania for 7 years.

In 2021, he was appointed Commercial Director in BRD Asigurari de Viata and CEO of BRD Asigurari Generale and since 2022, he has been acting as Country Manager of Société Générale Assurances in Romania and CEO of BRD Asigurari de Viata.

* This interview was edited by the Romania Insider team for BRD Asigurari.