Romanian insurance companies collected gross premiums amounting to RON 5.6 billion (EUR 1.2 bln) in the first six months of this year, 3.4% more than in the same period of 2019.

The increase is due exclusively to the positive dynamics recorded in the first quarter of 2020 when the local insurance market reached its highest quarterly value in recent years (RON 2.95 bln), Profit.ro reported.

In the second quarter of 2020 (Q2), the insurance market contracted by 1.9% year-on-year to RON 2.67 bln (down 9.5% compared to Q1) due to the effects of the COVID-19 pandemic and the measures taken to prevent its spread.

The slow growth rate was balanced by the lower compensations paid by the insurers.

The combined damage rate, calculated on cumulative data for all classes of non-life insurance, was 99.2% in the first six months of this year, down from 109.4% in the same period last year.

The Romanian insurance market remains characterized by a medium to high concentration degree. In the first half of 2020, approximately 88% of the total volume of gross written premiums was realized by 10 insurance companies out of the 27 authorized companies.

(Photo: Whirlitzer | Dreamstime.com)

andrei@romania-insider.com