Romania's insurance market up 8 percent in first half of 2025 to 12.3 billion lei

    Romania's insurance market recorded a positive growth in the first half of 2025, with total gross written premiums reaching 12.3 billion lei, an increase of 8 percent compared with the same period last year, according to a Financial Supervisory Authority (ASF) release.The companies authorised by the ASF reported a 10 percent rise in gross written premiums, confirming their essential role in strengthening the market.According to the quoted source, general insurance continued to dominate the market, accounting for 79 percent of the total, with a 6 percent increase. Within this segment, motor insurance (Compulsory Motor Liability Insurance - RCA and Comprehensive Car Insurance - CASCO) remained the main lines of business, with a combined volume of 7 billion lei. RCA alone reached 5.2 billion lei, up 10 percent, while the average annualized market premium stood at around 1,300 lei, 2 percent higher than in 2024. In addition, health insurance maintained its positive trend, exceeding 680 million lei.The ASF mentioned that the life insurance segment was the most dynamic, advancing 21 percent and becoming one of the market's main drivers. The growth was supported particularly by Unit-Linked products, which increased by 41 percent and now account for a third of life insurance subscriptions, as well as by traditional policies, which increased by almost 19 percent.In the first six months of the year, the market paid total gross claims of 5.8 billion lei, 16 percent higher than in the same period of 2024. General insurance generated the largest share of these payments, with a 20 percent increase and a dominant contribution from the RCA class, which alone accounted for over half of the total for general insurance (55 percent).The gross technical result for the market reached 809 million lei, with a significant contribution from CASCO.According to the quoted source, stability indicators confirm the market's robustness. As of 30 June 2025, the Solvency Capital Requirement (SCR) ratio stood at 164 percent, well above the minimum threshold, even if slightly lower than last year due to a higher capital requirement. Technical reserves reached 24 billion lei (+17 percent), while insurers' investments totalled 34.6 billion lei, mainly directed towards government bonds. Net market profit amounted to 866 million lei, just 3 percent below the historic record set in the first half of 2024, but significantly higher than in previous years.Distribution channels played an essential role, with brokers handling 68 percent of gross written premiums. The intermediation rate remained very high for general insurance (82 percent), while for life insurance it stood at 13 percent.The developments in the first half of the year confirm the market's solidity and stability, with a balanced growth and a significant contribution from all major segments. Diversification remains the main driver - with auto insurance policies supporting the market base and life insurance providing dynamism - while prospects for the second half of 2025 point to a continued trajectory of sustainable development.The Financial Supervisory Authority (ASF) is the national authority, established in 2013 through the Government Emergency Ordinance 93/2012, approved through the Law 113/2013, responsible for regulating and supervising the insurance and private pensions markets, as well as the capital market.