Head of Allianz-Tiriac: Insurers' losses will be at least as big as last year
Publish date: Astazi, 29-09-2008The insurance market will see net losses at least similar to those recorded in 2007, worth almost 76 million euros, forecasts Cristian Constantinescu, general manager of Allianz-Tiriac, the largest company on the market. "After what happened this year on the market, the loss will be at least similar to last year's. The reason is the perpetual problem with auto liability insurance, where insurers charge half the price they should normally charge, because the competition does the same," says Constantinescu, one of the most powerful managers in the insurance
sector. Unlike in other years, in 2008, the auto liability market has seen a modest rise, mainly due to the low prices operated by many companies in order to gain market share. Auto liability policies and comprehensive insurance policies generate the biggest losses for insurers, due to the high frequency of car accidents, and to the fees set by companies, which only consider competition, and ignore the risks involved.
"My main disappointment this year has been that company managers are aware that they are losing money, there have been discussions at market level as to the directions that should be taken in order to return to normal, but nobody has followed them. At the beginning of the year, we clearly felt the shareholders' pressure on profit, but we have heard nothing about that in the last few months," added the head of Allianz-Tiriac.
Before last year's results were available, Constantinescu forecast an up to 80 million-euro loss for 2007; an estimate that came close to the around 76 million-euro loss announced by the Insurance Supervisory Commission.
Ziarul Financiar
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