Insurance companies in Romania continue to lose money on the mandatory car insurance segment (RCA).

The companies spent about RON 102 for every RON 100 they earned in the second quarter, according to the National Association of Insurance and Reinsurance Companies in Romania (UNSAR), reports local Agerpres.

The insurance companies selling RCA policies recorded losses in the first half of the year. The combined damage ratio reached 101% in the first three months of the year and later increased to 102.3% in the second quarter. This means that insurers can’t fully cover the damages and the other costs from the gross premiums they cash in from the clients.

The level of the combined damage ratio may undergo major changes by the end of this year, considering that claims rate on the RCA segment is on an upward trend.

editor@romania-insider.com