On April 3rd, 2019, UNSAR took part in the International Conference „A New Deal for European and Romanian Financial Services Users”, attended by representatives of the authorities, associations and insurance companies and private pensions.
The conference, organized at ASE Bucharest, celebrated the 10th anniversary of BETTER FINANCE. Under the Romanian Presidency of the Council of the European Union, the conference brought to discussion the need for new offers for Romanian and European financial services users, focusing especially on EU and national developments in the field of pensions and life insurance, but also on the market capital.
As far as the development of the Romanian life insurance market is concerned, I believe – and many of you know this – that the answer is, as a matter of fact, a puzzle. I think there are at least three factors that contribute to the fact that the life insurance market from Romania only covers 0-21% of the total gross premiums written in the entire industry. Not necessarily in this order, the three factors are: the insufficient level of financial education, the low income of the population and the lack of deductibility. In this respect, we have at UNSAR level, several projects to support the market’s future development. These include the first information campaign regarding the life insurance dedicated to young people – #gatapentruVIATA (readyforLIFE)„said Alexandru CIUNCAN.
As far as the level of financial education is concerned, Alexandru CIUNCAN cited a study, also presented in a recent report conducted by KPMG, according to which, in Romania, only 1 out of 5 adults have a basic understanding of financial products, compared to 1 out of 3 at European level. “As a country, I think we have a lot to catch up in this regard.”
“I also think that, unlike 15 years ago, the insurance industry, and not just that, has changed a lot, in terms of transparency, of unit-linked products etc. What hasn’t changed is the share held by the life insurance segment at the gross written premiums level of the total industry”, added Alexandru CIUNCAN.