Abstract
Considering the qualitative changes in the legislative framework, the Romania’s entrance into the European Union and the recent global economic crisis, the Romanian insurance market is analyzed by considering ten representative insurance companies. A panel autoregressive-model (PVAR) model for the ten insurance companies was constructed for the period 2004-2017. This model suggested that the indemnities paid by the insurance companies negatively affected the liquidity but with a lag of two periods after changes in indemnities. Granger causality test indicated a causal relationship from indemnities variation to gross written premium in the same period. Almost 27% of the variation in indemnities rate is explained by a shock in the rate of gross written premium.
Highlights
IntroductionInsurance companies play an important role in the national economy that is deeply affected by uncertainties generated by the international environment, and by disturbances specific to the local economy
Insurance companies play an important role in the national economy that is deeply affected by uncertainties generated by the international environment, and by disturbances specific to the local economy.In this paper, ten Romanian insurance companies were analyzed, the selection of the firms being made after the continuity of their activity and data availability
Granger causality test indicated a causal relationship from indemnities variation to gross written premium in the same period
Summary
Insurance companies play an important role in the national economy that is deeply affected by uncertainties generated by the international environment, and by disturbances specific to the local economy. Ten Romanian insurance companies were analyzed, the selection of the firms being made after the continuity of their activity and data availability. The insurance companies are different according to size and turnover, but they have some important common features: long-lived companies with credibility and prestige in the domain, have decisive influence on the Romanian insurance market, influence the education of the population on insurance. Vienna Insurance Group (VIG) dominates the insurance markets in the Central and Eastern Europe, holding three of the ten analyzed insurance companies: BCR Asigurări de Viață – for life insurance activities, OMNIASIG – for non-life insurance segment, and ASIROM – for both insurance segments
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