Financial protection deficit at €97 blnPublish date: 30-01-2009
The protection deficit of Romania's population indicates the difference between available and required financial resources to maintain the standard of living of a family in case the member with the highest income dies.
This deficit amounts to €97 billion, more than double its 2006 level, said Cornelia Coman, General Manager of ING Asigurari de Viata life insurance company. This value of the financial protection deficit indicates the potential of the life insurance market.
ING calculations, based on a RON 16,000 annual net income for each employee, prove that the protection deficit is RON 48,000 for every active person.
"The need for protection in Romania is very high, considering the aging population and an increasing indebtedness degree. Along with savings and investments, financial protection must be taken into consideration," Coman added.
The Romanian life insurance market has the lowest penetration degree in gross domestic product (GDP), of 0.4-0.5 percent, compared to other countries in the region. The domestic insurance market registered subscribed gross premiums worth €1.83 billion in the first three quarters of 2008, up 13.56 percent year-on-year.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei