ROMANIAN MARKET IS SAFE FROM THE INTERNATIONAL CRISIS

Problems of global financial markets have not affected the insurance sector in Romania, because local companies have placed small capital abroad, reveals a report from the National Bank. Therefore, while leasing and credit became more costly and could still become more expensive, there are no external reasons for increasing insurance costs.

Specialists from National Bank believe that the main risks that can cause tensions in the insurance sector are the increase in the rate of claims for general insurance segment (non-life), the contraction in capital market and stock exchange decrease in Romania, with negative effects on the profitability of the portfolio securities assets for the life insurance segment. The reassuring assessments occur to some rather unspectacular results registered by the insurance companies in Romania: 2007 was the second consecutive year with a negative financial result. The optimistic tone is, however, shared by the Insurance Supervisory Commission, and its president, Angela Toncescu, argues that the negative financial results will not lead to a destabilization of the market, nor will affect the safety of policyholders.