Romanian MTPL insurance, in an unprecedented situation: what Romanian drivers need to know

Shortly after the bankruptcy of City Insurance, the main insurer of Romanian drivers, a wave of uncertainty set in in the Romanian RCA market, followed by a significant increase in prices. Now, things have stabilized and a strange phenomenon could be identified.

ASF publishes, at regular intervals, the “Report on the Evolution of the Insurance Market”. This analysis gives us an overview of the MTPL market in Mioritic lands and helps us to understand the practices of Romanians in terms of insurance. Among the surprising conclusions of the most recent analysis are the increase in sales by almost 2 billion lei, but also the increase in the number of companies that supply RCA.

What is happening in the RCA market, which are the top insurers

ASF published the Report on the Evolution of the Insurance Market in 2021. On this occasion we find out that the sales of MTPL last year were worth 6.11 billion lei, increasing by 32% or 2 billion lei compared to the values ​​of 2020. Beyond of price increases, the problem started with the disappearance from the market of City Insurance, which sells insurance with about 25% below the competition.

At the end of last year, in Romania, there were 6.7 million active RCA policies, with approximately 200,000 more compared to 2020 and no less than 700,000 over the statistics of 2019. If we identify a trend from these figures, 2022 is announced to be a very good year for insurers.

Regarding the ranking of insurers on the RCA market, given that City Insurance disappeared in September 2021, the top 10 in 2021 is divided in two. In the first nine months, the market was almost entirely divided between three players, Euroins had 35.39%, City Insurance 25.5% and Allianz Țiriac 12.6%. All other companies had less than 5% of the market, with a few exceptions.

By the end of 2021, the situation was completely different and the diversification process had already begun. Euroins had risen to 37.6% of the market and all other players grew significantly. Allianz-Țiriac Asigurări SA enjoyed a market share of 18.7%, while Groupama Asigurări SA jumped to 14.5% from 9%.