AUTO INSURANCES HOLD BACK THE MARKET

Insurance companies paid claims amounting to 1,19 billion euros last year, representing half of the value of insurance premiums, according to provisional data published by the Insurance Supervisory Commission (CSA for short in Romanian).

As in the previous years, in 2008 the damage costs have increased faster than earnings for the insurance companies. Thus, if subscribed gross premiums rose by 11%, the damage rate of growth almost doubled, up to 21%. In this context, there are voices that claim that the insurance companies need capital infusions of 250 to 300 million euro in order to guarantee market stability.