After the insurers complained about the strong growth of RCA damages, Hotnews found out how much profit they made last year: 2 lei per hundred lei

After the last days, the insurers claimed that every 10 lei received last year from the sale of RCA, almost 8 lei went on the payment of damages and the related reserves, to which are added taxes and contributions (including to the FGA), plus other expenses, HotNews.ro asked ASF whether they had a profit or not. Unadded financial data show that they were in addition to the RCA sale, says the authority.

• The damages paid last year by the insurance companies last year, based on the RCA policies, increased by 38%, up to over 4.7 billion lei, according to the latest data published by the Financial Supervisory Authority (ASF).

What insurers claimed

Starting from this information, the National Union of Insurance Companies (UNSAR) representing insurers with over 90% of the market revenues, a statement said on Thursday, stressing that these significant increases are added to other expenses.

“This value is also added the damages paid by the FGA – the insurance guarantee fund (up about 48%), as well as the reserves made up of insurers according to the legislation. Thus, finally, the total value for RCA insurance reaches the level of about 7.9 billion lei.

Basically, on average, from every 10 lei collected from the first RCA, almost 8 lei go only to cover the damages resulting from road accidents and the related reserves. In addition to this, insurance companies must also cover taxes and contributions (including FGA) – legal requirements necessary to carry out the activity, expenses with the distribution of policies, administration and not only

There is also the evolution of the frequency of road accidents. Thus, in the same period last year, the number of RCA damage files increased by 30%, exceeding the figure of 426.190. This fact reflects, once again, the high frequency of accidents in Romania. ”, The UNSAR release shows.

However, the Union of Insurers did not approach another aspect from the ASF report – the profitability of the insurance companies from the RCA sale.

The profit of insurers increased strongly, supported by RCA sales

The Financial Supervisory Authority presented in the 2024 report the profitability indicators at the entire insurance market and only for the first semester.

“The net profit of insurance companies at the level of the whole market has continued to increase in the first semester of 2024, a trend manifested from 2021, the main influence being the increase of the RCA first, the compulsory car liability insurance segment being best represented on the Romanian insurance market. A total net profit worth 892 million lei, up 82% compared to S1 2023.

At the level of the entire insurance market, the net technical result of the activity in the first semester of 2024 (total technical profits minus total technical losses) was a positive one, having the value of 876 million lei, increasing compared to the previous periods. ”, Mentions in the ASF report.

How much insurers won the RCA selling all year last year

HotNews.ro went on and asked the ASF to say whether or not the insurers made a strict profit from the sale of RCA all over 2024.

ASF has transmitted to HotNews.ro the unpaid financial results on the RCA reported by the 7 insurers in its supervision (without the ARDERIA, Hellas Direct and Dallbog) showing that they had a profit from the sale of RCA last year.

The financial performance of the RCA insurance “is reflected to a large extent, but not completely” in the technical result of the risk class A10 (in which the RCA insurance holds a share of 99%), which was a positive one, says the authority.

“The profit made by the RCA insurers authorized by ASF in 2024 was 126,141,014 lei, ie from each 100 lei from the won bonuses, 2 lei were winning (ie a positive technical result) of the insurers,” said ASF.

The technical result of a risk class represents the difference between the total technical income (won bonuses + other technical income) and the total of the technical expenses (damages happened + acquisition expenses + administrative expenses + other non-technical expenses).

For example, the taxes and contributions paid by the insurers to the ASF or to the Insurance Guarantee Fund (FGA) are expenses that are reflected in the final prices at RCA.