Coordinating Professor Graduate Prof.univ.dr. Bogdan Narcis FÎRȚESCU Vlad PORFIR Iași 2019 1 UNIVERSITATEA “ALEXANDRU IOAN CUZA” IAȘI FACULTATEA DE… [607406]

UNIVERSITATEA “ALEXANDRU IOAN CUZA” IAȘI
FACULTATEA DE ECONOMIE ȘI ADMINISTRAREA AFACERILOR

Business Administration

BACHELOR’S THESIS

Coordinating Professor Graduate

Prof.univ.dr. Bogdan Narcis FÎRȚESCU Vlad PORFIR

Iași
2019

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UNIVERSITATEA “ALEXANDRU IOAN CUZA” IAȘI
FACULTATEA DE ECONOMIE ȘI ADMINISTRAREA AFACERILOR

Business Administration

CASCO AND ITS IMPROVEMENTS
IN ROMANIA

Coordinating Professor Graduate

Prof.univ.dr. Bogdan Narcis FÎRȚES CU Vlad PORFIR

Iași
2019

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Contents

List of tables ………………………….. ………………………….. ………………………….. ………………………… 3
List of figures ………………………….. ………………………….. ………………………….. ………………………. 4
Introduction ………………………….. ………………………….. ………………………….. ………………………… 5
1.Insurance generalities and examples ………………………….. ………………………….. ……………….. 6
1.1.The content of Risk Management ………………………….. ………………………….. …………………. 6
1.2.Types of insurance ………………………….. ………………………….. ………………………….. ………. 10
1.2.1. Life insurance and its characteristics ………………………….. ………………………….. ……… 10
1.2.2. Health insurance gener alities ………………………….. ………………………….. ……………….. 13
1.2.3. Opinions and numbers about property insurance ………………………….. ………………….. 16
1.3. Cars insurance and its particularities ………………………….. ………………………….. …………… 18
1.3.1.Types of auto insurance ………………………….. ………………………….. ………………………. 19
1.3.2.CASCO in Romania – definition, characteristics and examples ………………………….. . 20
2.The European insurance Market ………………………….. ………………………….. …………………… 24
2.1.General Presentation of the European Insurance Market ………………………….. ……………… 24
2.2.All-time main Marke ts in Europe ………………………….. ………………………….. ……………….. 29
2.2.1. Lloyd’s Market – history and characteristics ………………………….. ……………………….. 30
2.2.2. The London Market – history and generalities ………………………….. …………………….. 33
2.3.The improvement of Market Insurance in Romania ………………………….. ……………………. 35
3.Specific products for car insurance – The research ………………………….. ……………………… 44
3.1.Research goal, questions, and hypotheses ………………………….. ………………………….. …….. 44
3.2.Research Methodology ………………………….. ………………………….. ………………………….. …. 45
3.3.Analyze and interpre tation of the results ………………………….. ………………………….. ………. 45
Conclusions ………………………….. ………………………….. ………………………….. ……………………….. 61
References and BIBLIOGRAPHY ………………………….. ………………………….. …………………… 63
Appendix ………………………….. ………………………….. ………………………….. ………………………….. . 66
Interview questionnaire ………………………….. ………………………….. ………………………….. ………… 66

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List of tables

Table 1 .1 – Insurance companies authorized by CSA to practice non -life insurance class
B3 – Insurance o f land transport equipment other than railway v ehicles (CASCO insurance
class) ……………………………………………………………………………………………………22
Table 2.1 – Companies with the largest volumes of gross written premiums and their
share in total (gene ral and life insurance) in 2018 ………………………………………………….39
Table 2.2 – Ranking of insurance companie s according to gross written premium s for
general insurance in 2018 …………………………………………………………………………….40
Table 2.3 – Ranking of insurance companies according to gross written p remiums for life
insurance 2018 …………………………………………………………………………………………41
Table 2.4 – Evolution of the degree of intermediation …………………………………….42
Table 2.5 – The situation of the first 10 insurance brokers according to the total volume
of the first intermediaries in 2018 ……………………………………………………………………42

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List of figures

Figure 3.1 – Frequency of owning a driving license ………………………………………46
Figure 3.2 – Frequency of age ………………………………………………………………47
Figure 3.3 – Frequency of income ………………………………………………………….48
Figure 3.4 – Frequency of having CASCO insurance …………………………………….49
Figure 3.5 – Frequency of the CASCO insurance payment per year ……………………50
Figure 3.6 – Frequency of satisfaction with the services provided from CASCO ………51
Figure 3.7 – Frequency of satisfaction related to the time the car needs to spend in
service ………………………………………………………………………………………………….52
Figure 3.8 – Frequency of satisfaction related to the duration of creation of the damage
file………………………………………………………………………………………………………53
Figure 3.9 – Frequency of satisfaction related to the time between the announcement of
the damage and the consultancy given by the insurance company ………………………………..54
Figure 3.10 – Frequency of satisfaction related to the time required to establish the
damages ………………………………………………………………………………………………..55
Figure 3.11 – Frequency of the necessity of a roadside assistance ………………………..56
Figure 3.12 – Frequency of importance of assistance against natural disasters …………57
Figure 3.13 – Frequency of ins urance against the risk of vandalism …………………….58
Figure 3.14 – Frequency of importance of being insured against the risk of vandalism ..59
Figure 3.15 – Frequency of the period for repairing a car after an easy, casual accident
without casualties ……………………………………………………………………………………..60

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Introduction

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1. Insuranc e generalities and examples

1.1. The content of Risk Management

“The risk of an accident has a certain degree of uncertainty both as to the moment of
production and its possible consequences. In other words, when we talk about the risk of an accident
we admit that there is a certain amount of unknown in it. And then naturally the question arises, how
can we control something that is unknown to us ?
Risk management is a new frontier discipline, which aims to develop a series of theories and
practical methods to protect us against risks. Here are some of the most effective risk management
methods:
-Avoiding the risks
-Reducing the likelihood of a risk
-Limit the consequences associated with a risk
-Summary of risk
-Transfer of risk”1
Thus, we will continue to pres ent the basic ideas of the methods listed above.
“Complete avoidance of risks is virtually impossible. However, each of us can avoid certain
risks. It is a passive method of actually giving up those activities that involve a certain risk. For
example, if w e do not want to be involved in any car accident, then we will not buy a car and avoid
traveling by car. ”2
But having a car is normal today, with the normal desire to eliminate the possibility of
becoming an accident victim. As a result, the use of the car will be avoided in the city's busy areas,
such as the central ones, where it is one of the highest risks of accidents. In order to get rid of possible
accidents and at the same time of high repair costs for your own car or even the one or those of the
other members involved in the accident, public transport can be used. But of course, this option comes
with the price of giving up the freedom of movement and the comfort offered by your own car.
A different example could be to avoid the possible destruction of the house by a natural
catastrophe such as an earthquake, a hurricane or flood, or a gas explosion or fire due to the gas used in
the home unless the idea of owning the house is dropped. Thus, the tenant status is accepted and

1 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asigurari”, Editura tehnica Bucuresti, 1998, p. 15.
2 Dan Anghel Constantinescu, Marinica Dobrin, op. cit. , p 15

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ownership is renounced. The financial disaster in the case of the destruction of the house by a natural
disaster is borne by the landlord and not by the tenant.
A person's death may be followed by serious financial consequences on descendants. An
example may be the death of a hus band in a family where he only works, in which case the children
and the wife remain on the road. To avoid the concern of such an event, you can give up the idea of
building a family. Eliminating the risk of such financial problems that may be encountere d by loved
ones can be accomplished by avoiding the status of husband or father.
The examples listed above illustrate that certain risks can be removed from daily life by
renouncing the benefits of ownership of goods such as cars, jewelry, buildings, artwo rk, or bypassing
certain actions. The possibility of accidents that can lead to the inability to work and even the risk of
an early death exist s at every step.
It is possible to avoid these risks, but the actual ways of meeting such gestures depend on our
aspirations in life, the social environment we are part of and the social status at the same time.
Reducing the likelihood of a risk
“Even if we cannot completely avoid the risk of producing an unwanted event, we can find
ways to reduce the likelihood of i t happening. For example, the complete avoidance of the risk of
getting cancer is impossible. But we can do a series of actions designed to reduce the risk of producing
it. We can, for example, give up smoking, replace meat with vegetables and fruits to in crease the
amount of fiber introduced into the body, avoid exposure to sunlight, living in industrially polluted
areas, drinking water that does not meet the quality standards, etc.”3
“We can reduce the likelihood of car accidents by reducing the number of hours spent driving,
adopting a preventive driving attitude, parking the car in specially arranged places, without leaving it
randomly on a sidewalk, etc. We can reduce the probability of penetrating thieves in the house by
installing a door and window pr otection system by using closed -circuit TVs using alarm systems.”4
“We can reduce the likelihood of a home fire by installing smoke detectors by providing
water or special spraying systems by rigor ously and periodically controll ing all possible sources of
fire, including electrical wiring.
We can , therefore , adopt a number of practical measures to reduce the likelihood of accidents
or the destruction of goods, but all this requires a certain effort, expense , and even personal
sacrifices.”5

3 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asigurari”, Editura tehnica Bucuresti, 1998, p 16
4 Dan Anghel Constantinescu, Marinica Dobrin, op. cit. , p 16
5 Dan Anghel Constantinescu, Marinica Dobrin, op. cit. , p 17.

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Limit the conse quences associated with a risk
“The most important way to limit the damage caused by the destruction or loss of material
goods is to hold modest goods. So to avoid buying and possessing luxury or very expensive goods. For
example, you lose less when you ar e stolen by an older and less efficient car than when you are
stealing a luxury ca r. It will also cost less car repair after an accident when you have an older and used
car than when you own a new and very expensive car. If the car you own is worth 25 mill ion RON,
then the maximum loss in case of its destruction or theft cannot exceed this amount. The situation
changes when you own 100 million lei or more.”6
In the case of a break through which some paintings are stolen, the damage can be reduced, if
the pai ntings are not the original ones, but only some children. So, it can also cost us the satisfaction of
owning very valuable and original items, in case they are destroyed or stolen.
In the case of an illness, we cannot categorize this principle as a valid o ne. The necessary
treatments and medications are not a personal option but are required by that illness. It is only
indirectly possible to reduce the consequences in such cases, as suggested in the risk reduction part.
Taking the risk
“Surely, we can accep t to bear the material and financial consequences of producing an
unwanted event. In fact, life puts us in a position to assume a number of risks, but risks are generally
characterized by the relatively small size of their consequences. In other words, the re are risks that we
can deal with alone and then accept them, although , in essence , these are undesirable events for us.”7
For example, an owner of an old vehicle or a depreciated vehicle can more easily afford the
risk of a car being stolen or severely d amaged in an accident than a person who owns a new car or for
which he has paid a consistent amount of money. Such risks can be assumed if we save or we already
have enough capital to repair the damaged vehicle or even to buy another one. If this money is not
available to u s, we can say that we are in a situation where we have to give up the idea of owning a car.
Since the assessment of their possible risks and repercussions is complicated, it is more
reasonable to renounce their personal assumption s. As an example, in the case of a car accident, the
defendant has to p ay the damage to the injured car, not only those of his own car. In addition,
hospitalization costs may be added to these costs, which, in addition to the previous ones, may result in
very high amounts. In other train s of thought , even if you have an outda ted and damaged car, assuming
this risk of acc ident can be unfortunate if you are blame d for the accident so you become compelled to
pay the damages of both the car and the hospitalization of the other members involved in an accident.

6 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asi gurari”, Editura tehnica Bucuresti, 1998 , p 17
7 Dan Anghel Constantinescu, Marinica Dobrin, op. cit. , p 18

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At the same time, it is possible to take risks because of the fact that we may not be aware of or
even have insufficient information about them. For example, if we are tenants in a fully furnished
apartment, we are prone to assume that in the event of a fire, the risk is entir ely on the owner. In fact,
the consequences of such an incident affect both members, as the owner is affected only by the house
itself, while the tenants are responsible for the furniture used in the rented property.
Transferring the risk
“Another method o f risk management is to transfer the risk to an insurance company. This
method is effective especially when the financial consequences of the unwanted event are high,
exceeding the possibility for the person in question to take the whole risk.
Transferring such risk involves the financial compensation of the company taking the risk, in
the form of the insurance premium. The size of the insurance premium is proportional to the estimated
value of the potential damage whose risk has been transferred. This does not mean that the unwanted
event will not occur anymore, but that in the event of its occurrence, the financial consequences will be
borne by the insurance company. The person who has provided for a certain type of unwanted events,
such as car accidents, escapes the stress created by the risk of their occurrence.
The t ransfer can only be done for those risks that can be measured in money, and for those
possible undesirable events for which the material and financial consequences can be measured. Risks
that cannot be financially assessed cannot be secured because the size of the transfer to the insurance
company is missing. For example, an unwanted event is also where the favorite football team lost the
qualifying match in the European or world championship. For one of the team's fans, such a risk has
more a subjective basis than an objective one, and therefore cannot be measured in money. ”8
“Risks that are accepted by insurance companies are called insurable risks. In order to be
transferred to insurance com panies, the risks must meet certain conditions. The most important
conditions are:
-Existence of a sufficient number of people exposed to the same type of risk
-The simultaneous risk factor for all insured should be as small as possible
-Danger or potentia l loss must be random in nature and difficult to counterfeit
-Potential leakage must be low probability; otherwise , the cost of insurance would be very
high.
-Risks must involve large potential losses, with serious financial consequences for the
individual

8 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asigurari”, Editura tehnica Bucuresti, 1998, p 18 -19

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-The consequences of producing an unwanted event need to be evaluated in cash.”9
1.2. Types of insurance

“The document signed between a person and an insurance company is called an insurance
policy and enters into force at the time of signing. The paid a mount is called insurance premium, and
the price differs from one company to another, but also according to the chosen terms. Insurance is a
method by which a person can enjoy financial protection when something unforeseen happens.
There are several types of insurance a person can do, but the most common are life insurance,
home insurance, health insurance, car insurance , and travel. ”10

1.2.1. Life insurance and its characteristics

“Life insurance provides a certain amount of money to the beneficiaries no minated by the
insurance policy holder at his death. It creates a capital that is automatically put at the disposal of the
heirs to ensure their financial security. Term insurance is pure life insurance that has the lowest
premiums but does not contribute t o saving. First -time insurance premiums in crease with the aging of
policy holders.
Other life insurance types provide for certain insurance premiums and include savings. These
savings -saving policies are commonly used to provide income for the retirement pe riod and to ensure
the financial security of heirs.
Modest life insurance may be provided by a patron to an employee as an additional benefit
provided in the employment contract. There is also the possibility for a member of an organization to
benefit from collective insurances that offer similar benefits but are cheaper.”11
Arguments for buying life insurance
“The name of life insurance is deliberately wrongly chosen because no one likes to talk about
death. But this insurance is thought to be a means of fi nancial protection for the survivors of the
insured, at his death. We emphasize once again that people buy life insurance to guarantee the
financial security of heirs (spouse, children, and parents). ”12
So it is normal for a person to ask the question, in c ase of premature death, what will happen
to his family. It would practically equal to zero the financial support left for the children and the wife.

9 Dan Anghel Constantinescu, Mar inica Dobrin, “Introducere in asigurari”, Editura tehnica Bucuresti, 1998 , p 19 -20
10 www. tribunaconsumatorilor.ro/cate -tipuri -de-asigurari -exista/
11 Dan Anghel Constantinescu, Marinica Dobrin, op. cit. , p 30.
12 Dan Anghel Constantinescu, Marinica Dobrin, op. cit. , p 30

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This is the classic case where a person would need this kind of insurance, even if other expenses would
have to be reduced to pay the insurance premiums concerned. The need for life insurance is essential if
some members of the family, especially children, are unable to cope on their own in the case of the
premature death of their parents, depending on their in come.
Funds for reimbursement of the credits assumed by the insured
“Life insurance is frequently bought for the full payment of the principal credit of the
policy holders in the case of their premature death. If the amount of life insurance you buy is high
enough, the insured's premature death will be able to pay the loans and the dependents of the insured
(children, parents) will be released from the payment of these debts. ”13
Funds to cover charges and taxes
“Very wealthy people who will leave a substantia l fortune as an inheritance can buy life
insurance to secure, in the event of death, the payment of taxes and duties levied on the transfer of
property and property through wills. A fortune that includes enough life insurance to cover wealth
taxes will rel ease heirs from paying very large amounts in a very short time.
Life assurance designed for this purpose will allow heirs to pay taxes on insurance
indemnities and will not put them in the limit of selling a range of goods or liquidating part of the
busine ss to could honor financial obligations. ”14
Options to compensate for the death
“In international practice, the beneficiary of a life insurance policy may choose one of the
following compensation options if the insured person dies:
Full indemnity to the val ue of the insurance policy. This option gives the beneficiary the most
flexibility in using money. The amounts obtained can be spent immediately or placed in other
investments. Unfortunately, this option creates the temptation for the amounts obtained to b e wasted in
small investments and exaggerated expenses.
Life annuity. These payments can be made monthly, quarterly, and semi -annually or annually
throughout the insured's life, depending on the beneficiary's wish. A young beneficiary, for whom life
expect ancy is high, will receive lower amounts than an older beneficiary.
Rates for a specified period of time . The beneficiary may opt for a certain amount of time to
make the appropriate payments. For example, monthly payments can be made for 10 years or 20 ye ars.
This alternative is similar to the one outlined above but imposes a limited time to make payments It

13 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asigurari”, Editura tehnica Bucuresti, 1998 , p 31
14 Dan Anghel Constantinescu, Marinica Dobrin, op. cit. , p 32

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can be attractive for a beneficiary who has a modest income and needs important resources to
financially secure his family.
Payment of specified amoun ts up to the limit of the agreed amount in life insurance. This
alternative leads, on the whole, to large amounts and, respectively, to a smaller number of payments.
Payments from the earned income by investing the indemnities obtained at the death of the
insured. For example, if the damages resulting from the death of the insured are $ 100,000 and the
interest earned on the investment is 5% per annum, then an annual $ 5,000 payment is granted. This
option leaves unchanged the principal value of the damages earned by the beneficiary through the life
insurance policy .”15
How high should the value of life insurance be
Life insur ance is not necessary for everybody . You may not need this kind of insurance if
your own income is substantial enough to be able to pro vide survivors and even parents with sufficient
financial resources for your living expenses and if you do not have much or no debt at the same time.
At the same time, this insurance may not be of interest to a person who has no family, or where his
family members are not financially dependent on his or her income.
Life insurance is considered by the majority of the population as an important component of
the financial plan. But as in any situation , there are people who share a different opinion, but they s till
consider this type of insurance not necessary because the advantages obtained through this would be
very small.
A life insurance can cover different needs that depend on certain factors that may be
subjective or objective, that can be financ ially eval uated or not, such as age and number of children,
wife's income, family lifestyle, previously earned debts, and the same the degree of importance offered
to family financial protection in the event of premature death.
If family members depend on a parent's income, ensuring that this income is present is a must
in case of premature death. So, we can list the most important arguments for purchasing life insurance:
-Covering death expenses
-Costing Expenditure Existence
-Repayment of the credits assumed by the insured
-The tax on wealth .

15 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asi gurari”, Editura tehnica Bucuresti, 1998, p 33-
34

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1.2.2. Health insurance generalities

“Healthcare provides protection for cases involving very high costs with a range of medical
treatments, expensive surgeries or hospitalizations. A disease or serious injury often result in high
medical expenses, to which few people can cope without having health insurance. Various types of
health insurance cover part or all of the costs of hospitalization, medical consultations, surgical
operations, teeth , and eye care.
Specialized insura nce policies are intended for additional healthcare, accident and disease
costs. It is therefore advisable to concen trate the interests to provide health insurance with a
sufficiently broad spectrum of medical expenses that would have the necessary interve ntion potential
in situations that generate particular financial difficulties. ”16
The unexpected intensification of claims by hospitals, doctors, and insurers was offset by
insurance companies by the unceasing rise in health insurance premiums. This sudden increase led to a
reassessment of the need for policies by employers and, in most cases, to abandoning health insurance
for their own employees.
Like other types of insurance, healthcare is effective to be used to transfer health care risks,
especially in the case of prolonged hospitalizations, serious illness or even surgical operations. For this
reason, we should consider health insurance as the most favorable means of protection against such
unfortunate financial situations.
At the same time, as part of current expenses, some expenses such as eye care and teething,
for light medical treatments, generally for health care caused by routine medical consultations, can be
directly deduced, without requiring any kind of policy health insurance.
Types of health insurance
“Insurance companies generally offer several types of insurance policies. Some doctors pay
the costs of a hospital stay, while others cover the surgeon's payment notes. Some insurance policies
cover expenses that do not have connections with surg ery, and others aim at spending from a wide
range of medical treatments. ”17
A. Ensure hospitalization expenses
This type of health insurance is designed to cover all or part of the expenses incurred during
the hospitalization period. Coverage of these expenses may include medical nurses, laboratory tests,
meals, medicines and the room where the insured is hospitalized. Ensuring hospitalization expenses is

16 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asigurari”, Edit ura tehnica Bucuresti, 1998, p 37-38
17 Dan Anghel Constantinescu, Marinica Dobrin, op. cit. , p 39

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the most popular insurance policy, although it does not cover expenses like those for surgery that could
be produced during that period of hospitalization.
Some of these insurance policies are prescribed with the possibility that payment is not made
to the hospital but directly to the insured person. In this case, it may be necessary to make some
additional pay ments made by the insured, in addition to the amount received from the insurance
company to make it possible to cover these hospitalization expenses, especially in the case of long and
complicated treatments.
B. Insurance for surgery
Assistance for surgery co vers all or part of the expenses required for such interventions,
including doctors' salary, for anesthesia procedures and for the salon used for admissions. Depending
on which clauses are chosen by the insured, the company may pay the operating costs dire ctly to the
hospital or may refund the costs to the insured person in question. In the second case, it is very clearly
specified the maximum amount that the company will pay back to the insured. This type of health
insurance is most often bought together w ith the previous policy, namely the insurance of the
hospitalization expenses.
C. Basic medical insurance
Basic medical insurance is a type of insurance designed specifically to cover the cost of
medical services that are not directly related to surgery. The insurance policy is intended to cover costs
that are directly related to some services such as X -ray examinations, laboratory tests, medical
examinations, home shifts or medical consultations. Costs related to eye care and teeth can be included
in this ins urance policy. Different clauses covering basic medical expenses are covered by different
insurance policies.
“Basic medical insurance generally provides for the maximum amount the company will pay
for a medical visit or for laboratory tests and may also p rovide for a limitation of the number of
medical and laboratory tests . For this reason, the insurance provided is limited and therefore it is
combined with insurance for hospitalization expenses and insurance for surgery. ”18
D. Major medical insurance
Major me dical insurance is designed to cover certain amounts that are considered to be very
high, which are required by the care of the company which for a normal per son could be the equivalent
of financial misfortune. The structure of this major medical insurance policy is designed to contain a
franchise to be paid directly by the insured at the beginning of the year. This can be done for each
member of the family or can be done for the whole family, depending on the preference of each

18 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asigurari”, Edit ura tehnica Bucuresti, 1998, p 40

15
insured person in part. Only the person choosing this type of insurance can determine the maximum
amount of franchise. If it chooses to take a more significant part of the medical expenses
corresponding to one year, the lower the insurance premium and, at the same time, the benefits
provided by the insurance policy will be lower. The part of the insurance policy that is set to be paid by
the insured is , in fact , a co-insurance.
E. Complex medical insurance
Comprehensive medical insurance is illustrated by a single insurance policy, which includes
basic medical insurance, insurance for surgery, major medical insurance and hospitalization expenses.
This insurance scheme is superior to other types of individual insurance only for certain health care
expenses. This option allows the insured p erson to no longer be obliged to analyze and decide on the
types and d etails of expenses for which he/ she needs to find the most appropriate insurance policies.
For example, the use of anesthesia services will be included in basic medical care, in surgery or in
hospital expenses.
This type of insurance includes specifics regarding the maximum limit of the expenses
incurred by the insured, the co -insurance conditions, the franchise value and the maximum limit of the
insured amount.
Important clauses in healt h insurance policies
“There are large disparities between the cover provided by health insurance policies. Policies
have different franchises, different provisions on co -insurance, different ceilings, different benefit
periods and different coverage defini tions.
Due to these differences in coverage, policy clauses are less accessible to policyholders. Many
individuals with health insurance, whose illness claims hospitalization, have great difficulty in
determining the amount up to which insurance would cove r their expenses and the amount they are
required to pay. Poor accessibility of the policy text makes policy holders unable to understand and
understand the terms of their policies. ”19
So we can list some of the most important clauses of most health ins uranc e policies. These
include e nsuring non -resilience and renewal, grace period, exclusions and limitations, eligibility of
beneficiaries, exemption from premiums and, c orrelation of damages .

19 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asigurari”, Edit ura tehnica Bucuresti, 1998, p 42-43

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1.2.3. Opinions and numbers about p roperty insurance

Absurdly, al though Romania is ranked first among the top European countries in terms of the
frequency of the population living in personal real estate, one of the households' objectives being the
acquisition of a home, we are astonished to see that protecting such an investment through different
policies Optional or mandatory ones are not a priority, with statistics indicating that only 1 in 5 homes
are insured.
In this chapter, Romania sums up two traits that can justify a major role of property insurance
in the marke t portfolio such as a fund that is considered as the second largest in Central and Eastern
Europe and a very high share of personal housing. However, if we are to compare with other markets
with a similar level of development in the region, such as Hungary , Poland or even the Czech
Republic, Romania is distinguished by a degree of insurance coverage of the much l ower property,
approximately 20% compared to over 50% in the Czech Republic or 75% in Hungary or Poland. The
difference is all the more relevant if we take into account that Romania is the only country in the
region where there is a functional scheme of mandatory property insurance for catastrophic risks.
"The situation is really dramatic. We are talking about an extremely exposed area, where the
frequency and severity of the damage is increasing, and the severe weather or extreme weather
phenomena are more and more present, the situation in the western par t of the country is the most
recent example "Even in this context, the penetration rate of compu lsory and optional housing
insurance is decreasing every quarter and voluntary insurance remains in the shadow of compulsory
insurance," says Virgil SONCUTEAN, General M anager, ALLIANZ -TIRIAC Insurance .20
The insurers mention that the reasons behind such a negative evolution are either the general
rule of the economy, or the fact that the benefits of this type of protection, the one through insurance,
are unknown, but at the same time the general confusion between the optional insurance housing and
PAD polic y.
Identifying solutions to reduce the insurance deficit was among the market's priorities in
2017. According to Adrian MARIN, President of UNSAR, "for property, compulsory and voluntary
property insurance, in 2017 a number of topics were discussed in the public and institutional space The
debate on the amendment of the legal framework for compulsory home insurance – PAD (Law
260/2008) aims at identifying instruments and finding new ways to increase th e penetration of PAD
insurance. "21

20 www.1asig.ro/Asigurarile -de-proprietate -In-cautarea -revirimentului -articol -13,90 -58043.htm [Accessed on June
2019] Autor: Daniela GHETU
21 Ibidem .

17
"The increase in insur ance coverage for catastrophe risks included in the compulsory PAD
policy is very important for the economy of this type of insurance, both in terms of the sustainability of
the premium and the purpos e for which the law was created, established a working g roup consisting of
representatives of the Financial Supervisory Authority, PAID, the Ministry of Regional Development,
Public Administration and European Funds, and professional associations: UNSAR, UNSICAR,
PRBAR, CPBR, to carry out a diagnostic analysis and identify optimal and viable solutions on which
will lead to an increase in insurance coverage, "explains Cornel COCA CONSTANTINESCU, Vice
President of ASF.22
“No matter how good the amendments to the mandatory home insurance law are, they are not
suffic ient if the national disaster insurance program whose PAID vector is not only providing the basic
level of protection for a maximum amount of EUR 20,000 , and only the three risks provided by the
law (earthquake, flood, landslide). At least in the case of urban dwellings, but also for a large part of
those in rural areas, full protection can only be achieved by optional insurance. As such, it is essential
to continue to educate homeowners about the need for insurance. ”23
"From our point of view, the way in w hich we manage to respond to these challenges is the
examples, the positive experiences that insurers can give when talking about services rendered in case
of damage. The need for coverage exists; we strongly believe that the way in which we respond to
damage builds confidence further, "says Anca BABANEATA . ”For us, in 2017, the average time for
damages related to voluntary home insurance was up to 2 days and the damages were paid in
maximum 2 days from the date of receipt of all the documents requested by the insured", explains the
director of Gothaer Asigurari Reinsurance, opinion confirmed by Mihai TECAU, Chairman of the
OMNIASIG Vienna Insurance Group Directorate: "Alongside the adaptation of the workflows to the
requirements of the new legal norms, as w ell as increasing the awareness of the need for property
insurance, the main concern of the insurers must always be to increase the quality o f the services
customer loyalty ".24
Ovidiu BALABAN, General Insurance Director, GARANTA Asigurari, summarizes: "The
most important developments in the insurance market in 2018 that we could foresee on the property
segment would be related to the review of optional insurance products to meet the current requirements
imposed by the new technologies and the intensification of the insurance -broker relationship in the

22 www.1asig.ro/Asigurarile -de-proprietate -In-cautarea -revirimentului -articol -13,90 -58043.htm [Accessed on June
2019] Autor: Daniela GHETU
23 Ibidem.
24 Ibidem.

18
direction of customer orientation. From the point of view of the threats, I consider that special attention
should be paid to the effects of climate change and the reevaluation of catastrophic risks. "25
Between currently unexplored opportunities and persistent difficulties, property insurance in
our country is expected to be a long way to reach potential. It is expected that from 2019 all issues
related to this subject could be solved. However, it can at the same time mark an essential step towards
the revival of the market, especially in the retail segment.
1.3. Cars insurance and its particularities

“Car insurance is designed to compensate for damage to the car's car, the other cars involved
in the accident, as well as damaged goods in the event of a car accident. Also, motor insurance
provides financial compensation for the injuries of the insured and other persons involved in the
accident.
Particular attention should be paid to the analysis of the specific nee ds to be covered by the
insurance policy and which depend on the insured car as well as the financial condition of the insured
person. ”26
The secret of favorable motor insurance is finding the right balance between proper coverage
and cost. A significant c apital economy is resilient only if the many insurance companies' offers are
compared. Driving and owning a motor vehicle subjects any person to a significant financial risk. This
risk refers primarily to its own automobile, but also to other cars engaged in acid. Simultaneously, they
are prone to accidents, and therefore to possible bodily harm or even death, including other people in a
car outside of the driver.
“This form of insurance is part of the category of technical insurance, which includes:
-Secu re of buildings and their content
-Safety of construction and assembly works
-Insurance of electronic equipment
It can be found in the offer of different insurers with different names (insurance of accidental
damage, equipment, and equipment insurance) and with a specific content of the insurance conditions
regarding the goods and the risks insured, the establishment of the insured amounts and bonuses,
etc.”27

25 www.1asig.ro/Asigurarile -de-proprietate -In-cautarea -revirimentului -articol -13,90 -58043.htm [Accessed on
June 2019 ] Autor: Daniela GHETU
26 Dan Anghel Constantinescu, Marinica Dobrin, “Introducere in asigurari”, Edit ura tehnica Bucuresti, 1998, p 45
27 Constantin Nicolae Lungu, “Asigurari de bunuri”, Editura Universitatii “Alex andru Ioan Cuza” Iasi, 2009, p 58

19
Accidental damage insurance can be part of an insurance package, which includes fire
insurance, el ectronic equipment insurance, business interruption insurance, and civil liability
insurance, specific to the industrial environment.28
Fire insurance for buildings and accidental damages complement each other. So, with regard
to the risk of fire, accident al damage is also covered by the fire coming from inside the car, but not
from the outside, while the fire insurance covers only the fire triggered outside the car, the one
originated from inside being excluded. At the same time, as a rule, the explosion o f pressure vessels
and boilers is excluded from the fire policy, but when it comes to accidental damage, it can be ensured
by a special clause.
1.3.1. Types of auto insurance

In the US, seven types of motor insurance are marketed by insurance companies. Some of
them are optional, the rest is mandatory in the law. If it is to go beyond the minimum level of motor
insurance provided by law, any vehicle owner is ensured by taking into account his financial status and
personal requirements. In assessing the second cr iterion, consider the age of the car, its type, but also
the degree of use of the personal vehicle to solve the service and daily problems.
A. Civil liability in case of bodily injury
With this type of coverage, accident victims are compensated by the insura nce company for
accidents caused by the insured. At the same time, this type of coverage also refers to the costs of a
possible process. Civil liability insurance in case of a car accident also supports the possible medical
expenses of the victims of an ac cident.
B. Civil liability for damage to property
This type of insurance undertakes to pay, in the event of an accident, the replacement or repair
of goods that have been devastated only if they are the property of the policyholder. The insurance
will, theref ore, compensate for the losses suffered by the injured persons and the policy of the guilty
party will bear the expenses.
C. Unsecured or under -assured motorist
The non -insurance or sub -insurance policy of the motorist may be taken into account when
the insur ed person is injured and suffers from various bodily injury and material damage, and the
guilty party of the accident does not own a motor third party liability insurance. At the same time,
through this type of insurance, the insurance company is subject t o the medical expenses for all
persons present in the injured car if the driver due to which the accident is produced is underwritten.

28 Badea, D.G.(coord.) – Manualul a gentului de asigurari, Ed. Economica, Bucuresti , 2008, p 223

20
D. Insurance of medical expenses and insurance against bodily injuries
Medical expenses provide compensation for the bodily affections of the driver whose car is
insured, but also for the injuries suffered by the other members present in the vehicle, regardless of
who is responsible for causing the accident.
The injury insurance policy aims to cover a wider spectrum. Apart from engaging in
hospitalization and physician fees, this type of insurance returns a certain amount of money to the
policyholder to compensate for the temporary loss of work capacity.
E. Ensuring collision
Collision Assurance undertakes to cover the cost of vehi cle replacement or repairs when the
insured detonates his car in a collision with an object or other cars, or in case of overturning. If the
amount needed to repair the car is close to its value at the time of the acquisition, in particular, if the
damage caused during the accident represents at least 80% of the comparison price, then the insurance
company prefers the purchase of a new vehicle rather than the r epair of the damaged one.
F. Complex insurance
Comprehensive insurance assumes taking over the risk o f producing all the events, except for
the collision. For example, if the insured's car is damaged by the fall of some trees, a hail, vandalism, a
fire or if assaulted by thieves, will be offset by this type of insurance.
G. Various insurance
Diverse insuranc es are those types of motor insurance that are designed to cover various but
less important risks. One and probably the most important insurance in this category is that of towage
expenses. This is required if, for example, the insured vehicle remains stuc k due to a malfunction to
the engine. This type of insurance undertakes to bear the necessary cost of towing the damaged car to
the nearest service station. Traction can be done whenever necessary, not just in the event of an
accident.

1.3.2. CASCO in Romania – definition, characteristics and examples

CASCO is optional insurance under which the insurance company pays indemnity for
accidental damage, partial or total, and for theft, in whole or in part, it suffers from the insured vehicle
and insured under the in surance policy.
CASCO insurance should not be confused with RCA civil liability insurance. While CASCO
provides you with coverage for damage to your car, MTPL insurance covers material damage and
bodily injuries suffered by others as a result of a road acc ident caused by your fault. In the case of

21
CASCO insurance, your rights and obligations, as insured, as well as those of the insurance company,
are those set out in the insurance contract you have concluded.
“This insurance is optional, which means that th e decision to conclude a CASCO insurance
contract is at the discretion of the owner of the vehicle and is not mandatory by law. Although under
the law governing leasing operations, the sponsor is required to ensure vehicles leased, this obligation
or provi sion does not change the nature of the CASCO insurance contract but remains a voluntary
insurance contract. Pursuant to Government Ordinance no. 51/1997 on leasing operations and leasing
companies, as subsequently amended and supplemented, leasing companie s have the obligation to
provide vehicles. The insurance premium is paid by the user but the insured is the leasing company. ”29
The specific CASCO insurance conditions may differ from one insurance company to
another, both in terms of the franchise price, i f any, in addition to the excluded risks, the insured risks,
and other characteristic elements as well as the premiums insurance and payment status. Therefore, in
order for a confrontation between the values of the insurance premiums used by the companies to be
relevant, it is necessary that the services given are similar.
The insurance company has the duty to pay the damages in all cases in accordance with the
conditions specified in the contract, except for the applicable franchise if applicable and, poss ibly, the
rates that remain to be paid to the policy. The franchise is that part of the value of the damage that is
borne by the vehicle owner and may be decided by the insurance company as a fixed amount or as a
percentage of the amount of the claim or th e insured amount.
It is very important that, before completing an insurance contract, you also examine the other
offers available on the market. At the same time, it is important to know that before the conclusion of
each insurance contract, you have the r ight to receive a minimum set of information referring to the
proposed insurance contract and to that company.
It is highly recommended to pay attention to the understanding and review of the contractual
clauses, especially those referring to the risks cov ered by the insurance, the value of the franchise, the
exclusions, the approval procedures and the liquidation of the damage, more precisely what should be
done in the case of insured risks, which are the repair units you can address. To complete an insura nce
contract, there is also the possibility to contact an insurance broker who will examine for you the
insurance quotes available at that time on the market and at the same time present you the product he
considers to be the more suitable for your needs.

29 www.asfromania.ro/consumatori/petitii/78 -root -ro/protectia -consumatorilor/763 -casco [Accessed on June
2019]

22
Table 1 .1 – Insurance companies authorized by CSA to practice non -life insurance class B3 –
Insurance of land transport equipment other than railway vehicles (CASCO insurance class):
Crt. Nr. Name
1. ABC ASIGURARI -REASIGURARI S.A.
2. ALLIANZ – TIRIAC A SIGURARI S.A.
3. GENERALI ROMANIA ASIGURARE REASIGURARE S.A.
4. ASIGURARE REASIGURARE ASIMED S.A.
5. ASIGURAREA ROMANEASCA – ASIROM VIENNA INSURANCE GROUP S.A.
6. ASITO KAPITAL S.A.
7. ATE INSURANCE ROMANIA S.A.
8. OMNIASIG VIENNA INSURANCE GROUP S.A .
9. CARPATICA ASIG S.A.
10. CERTASIG – SOCIETATE DE ASIGURARE SI REASIGURARE S.A.
11. CREDIT EUROPE ASIGURARI – REASIGURARI S.A.
12. EUREKO ASIGURARI S.A.
13. EUROINS ROMANIA ASIGURARE REASIGURARE S.A.
14. FATA ASIGURARI S.A.
15. FORTE ASIGURARI RE ASIGURARI S.A.
16. GARANTA ASIGURARI S.A.
17. GOTHAER ASIGURARI REASIGURARI S.A.
18. GROUPAMA ASIGURARI S.A.
19. ONIX ASIGURARI S.A.
20. SOCIETATEA COMERCIALA DE ASIGURARE -REASIGURARE ASTRA S.A.
21. SOCIETATEA DE ASIGURARE SI REASIGURARE CITY INSURAN CE S.A.
22. SOCIETATEA DE ASIGURARE -REASIGURARE LIG INSURANCE S.A.
23. UNIQA ASIGURARI S.A.

If we are to follow the European principles that refer to the right of establishment and the free
movement of services, the Romanian market can also carry out t he activity and the insurance
companies authorized in other European countries.

23
More than 823,000 Romanians had a CASCO car insurance in 2017, about 5.5% more than in
2016, according to the F inancial Supervisory Authority. The value of these policies reach ed some 1.4
billion Ron, which means that on average the premium would reach over 400 euros per year.
The specific CASCO insurance charge depends on the driver's age, home, brand and age of
the car, as well as the cover he has. An example would be for a Da cia Logan car that is in the
possession of a 30 -year-old driver in Bucharest. For this, the CASCO insurance costs 200 -300 euros
per year to the best insurance companies in the country.
The main risks CASCO policy covers are acts of vandalism, theft, natura l calamities, fires,
falls, overturns, scams, bumps and clashes. At the same time, a clause too often included by insurers in
standard covers is roadside assistance. The rate of such a policy is 40% lower if the client chooses to
include a franchise, which means that part of the amount of the damage is to be borne by the insured.
„While they cashed about 1.4 billion lei from Casco, the insurers paid back their customers
about 867 million lei in compensation between January and September 2017, about 2% more than in
the same period of the year past, according to ASF. ”30

30 www.zf.ro/banci -si-asigurari/peste -823-300-de-romani -au-o-asigurare -casco -a-masinii -pentru -care -platesc –
peste -400-euro -pe-an-16966374 , [Accessed on June 2019] Autor: Anelis Baciu

24
2. The European insurance Market

2.1. General Presentation of the European Insurance Market

The insurance market, if we report internationally, is characterized by a high degree of
heterogeneit y due to the diversity of events that cause damage and the activities it can affect.
Practically, as a result of this, it is not possible to delimit a single insurance and reinsurance market,
each of which is characterized by the supremacy of certain categ ories of insurance, by the existence of
certain insurance and reinsurance companies, higher coverage or higher exclusions and by specific
rules and regulations.
It can be said that at the European level the insurance world has had a general evolution, with
some common characteristics, but also with many differences from country to country.
First of all, it should be noted that Europe is the place for the emergence of modern insurances
and will always be a fundamental global market with a rapid increase in s avings and life insurance, but
at the same time being second to the United States of America.
We are currently witnessing a process of maturing the single European insurance market, with
achievements, but also with its untapped difficulties.
A gradual proc ess that lasted for many years was the development of a single European
insurance market. The European Union's guidelines on insurance represent the generally accepted
principles at the European Community level with the aim of homogenizing insurance rules and
facilitating trade everywhere, primarily by referring to insurance and reinsurance activities.
Although there is still no unified pan -European insurance market, England, France and
Germany continue to hold this sector in terms of both insurance premium income and the nu mber of
insurance companies. H omogenization of the legislative framework at the level of the European Union
cannot yet be discussed because both the member states and the adhering countries maintain most of
the national laws that are atta ched to the respective financial markets of the country and their culture.
The basic principles of the Treaty of Rome are respected by the pan -European market, namely
the free movement of services, goods, people , and capital between the Member States.
A series of instructions have been promulgated over the past 35 years in the European Union
to create a single insurance market, with the introduction of a single European passport in the
insurance sector. An agreement with countries forming the European Econo mic Area has allowed the
application of these measures to be extended to Norway, Iceland , and Liechtenstein as the rules set out
in the agreement include all the directives on the basis of the European insurance market.

25
Due to the withdrawal of Switzerland from the agreement with the European Economic Area,
it decided to sign on 1 st January 1994 an agreement with the European Union on property insurance.
Through this agreement, non -life insurance companies in Switzerland and the European Union have
been gra nted a mutual right to simultaneously create their agencies or subsidiaries on the territory of
the other , under the same conditions as those which prior to 1 st July 1994 were used between countries
belonging to the European Union. These conditions were eq uivalent to the First European Directive on
Non-Life Insurance.
Gibraltar, being one of Europe's smallest territories, is part of the European Union in
accepting the Treaty of Rome, so its insurance direct ives will also be applied to its territory. Jersey,
Guernsey , and Man are not part of the single European insurance market. Because of this, the
insurance directives are not app licable and the obtaining of authorization from the appropriate local
institutions will be necessary for insurance companies wishi ng to operate in this area.
Since the early 1970s, through three stages, the single market of insurance has been built. In
1973, the first set of directives was created to take into account the right of establishment in non -life
insurance and in 1979 in li fe insurance. In 1988, the second set of directives took into account the
conditions for the freedom to provide services in non -life insurance and in 1990 in life insurance. In
essence, the third and final set of directives referred to the establishment of a single unique licensing
system, through which the operating authorization is attributed, both by establishing agencies and
branches and by the free provision of services for occasional or temporary activities in the entire
Community space of all insuran ce undertakings admitted by a Member State. In 1992 they were
approved for both categories of insurance, and then in 1994 , they came into force. This created a
framework for European insurance action where the directives in question are an example of a sin gle
integration. In no other part of the world, not even in a federal state like the USA, there is freedom of
establishment and service provision or a single license system at the same level as in Europe.
One of the most prestigious institutions with conce rns in the field of insurance is the European
Insurance Committee, being abbreviated as EIC. This institution which is based in Paris was founded
in 1953 and currently has 29 members.
“The purpose of setting up this institution is to represent Europe's ins urers and to promote
their interests by providing qualified insights to European or international organizations, public or
private in the field of insurance or reinsurance, facilitating the exchange of information and experience
between markets by developi ng of studies in the interest of European insurance companies or to meet
their needs.

26
CEA periodically publishes various studies and statistics aimed at providing information in
this area in the context of the European single market, in parallel with the p henomenon of globalization
that has become more and more visible in recent years. There are some changes in several directions:
– Among insurers, reinsurers and insurers: large multinationals tend to raise their self –
insurance threshold and transfer the ri sks or part of them directly to reinsurers; the choice is
increasingly being made on the principle of global financial management;
– Between the state and the private sector, given the lowering of its share in the insurance
sector, new perspectives for the private sector are opened;
– Between insurers and bankers: the so -called "bancassurance" that is gaining a widening
expansion, so not long after we see that, without using the bank as a distribution channel for insurance
products, none of the two types in stitutions will no longer be able to survive ;”31
We can clearly state the most important of the current and at the same time the next decade of
the globalization of financial services that ensure the continuation of marking the entire evolution of
the domai n of insurance and reinsurance.
“In Europe, the single insurance market covers 27 countries forming the European Economic
Area. With economic growth, insurance continued to grow in 1997, with life insurance differences
rising by 14.1% and non -life declinin g by 8.8% compared to 1996. The market of insurance in the
European Union registered an increase of 8.8% in 1997 compared to 1996, the total amount of
insurance premiums amounting to 543.7 billion ECU more than GDP growth (2.7% in 1997 compared
to 1996).
In 1998, E EA said that the three largest insurance markets in Europe (France, Germany, UK)
accounted for 67.1% of total life insurance and 64.9 of total non -life insurance. Seven other markets
account for 87% of each of the two categories of insurance (Ital y, Netherlands, Switzerland, Spain,
France, Germany, UK). Even if there has been more growth in life insurance, there has been interest in
other categories of insurance, taking into account disaster damage (industrial risks, liability and
material damage, credit) .
Insurance is a key sector of the European economy, whose influence is felt both in terms of
protection against risks in the economic and social spheres of member countries, as a stimulator of the
medium and long term saving idea, and as a provider of funds for financial markets. As a matter of
fact, another role in insurance is the development of asset management and risk management
techniques.

31 http://www.scritub.com/economie/asigu rari/PIATA -EUROPEANA -A-ASIGURARILOR133137141.php#_ftn1
[Accessed on May 2019]

27
One example is that insurance companies in the European Union managed assets amounting
to approximately 2 ,381 billion ECU in 1996 and approximately 2,660 billion ECU in 1997,
representing over 37% of European GDP. Of these, over 995 billion were bonds (public or private)
with the difference from one market to another, 641 billion ECU were shares and 466 billi on ECU
were loans.”32
So we have a list of indicators in close interdependence used to characterize the importance of
insurance in the economy and to analyze their role:
– Investment / GDP (%)
– Number of insurance companies
– Insurance premiums / GDP (%)
– The number of employees of the insurance companies – the countries of the European
Union, in a number of 27
– The total volume of insurance premiums (ECU billions)
– Insurance premiums/ inhabitant (ECU)
The size of the insurance market is absolutely equal to the total amount of premiums earned.
Life insurance increases 13% more than non -life insurance, which increased by only 2%.
Taking into account this aspect, there are 3 groups of countries:
– Group 1: The United Kingdom, France , and Germany hold togethe r 63% of the total
premiums earned and 70% of the EU.
– Group 2: Spain, Italy , and Switzerland hold 20.5% of the EIC member countries' premiums
in 1998, each with values between 3.9% and 6.6% .
– Group 3: A total of 4% of premium income is held by other E U countries .
“Insurance penetration is equal to the insurance premium / GDP and reflects the importance
of insurance in the economic activity of a country or geographical area.
In 1998, the European Market was divided into three groups:
-First group: Luxem bourg – 32.4% ( due to the development and importance of the sector in
the economy plus the financial services sector).
-Second group: United Kingdom – 11.7%, Switzerland – 11.9%, France – 9.9%, the
Netherlands – 9%, Ireland – 8.6%, Finland – 7.7%, Belgium – 6.1%, Germany – 6.4% and Denmark –
6.3%.

32 www.scritub.com/economie/asigurari/PIATA -EUROPEANA -A-ASIGURARILOR133 137141.php#_ftn1 [Accessed on
May 2019]

28
-Third group: Sweden – 5.7%, Austria, Portugal , and Spain – 5.4%. In this group, countries
with weights between 5 and 6% are included.”33
The importance of insurance in the economy is reflected in the report Invest ments of
insurance companies / GDP and also shows the impact of insurance on the economy through
investments that can be on medium or long term, investments that are being made by insurance
companies.
“In 1997, the total volume of invested and managed asse ts increased to 40.5% of global GDP
in the 25 CEA member countries.
In 1997, 10 countries had insurance activity of over 50% of which Luxembourg and Finland
with over 75%, Switzerland, Great Britain, Sweden, France, Ireland and Denmark between 60% and
75%, the Netherlands and Cyprus between 50% and 60% .”34
Only in 5 countries belonging to the European Union is life insurance more concentrated. If
we talk about non -life insurance, only 5 companies dominate the market, managing to control 2/3 of all
transacti ons.
“The European insurance industry has achieved very good results in 2006 and is expected to
continue to grow in 2007, although prices on the insurance and reinsurance market may rise further,
according to a Standard & Poor's report by NewsIn.
"The rati ngs of companies on the European insurance market support these optimistic
forecasts, with 79% of the monitored companies receiving a stable rating of 16%, and only 5% rated
negative ly. These ratings may even improve, as insurance companies will show that business
profitability in 2006 is sustainable in the long run, "said Standard & Poor's analyst Simon Marshall
quoted in the agency's report. According to Marshall, factors that could damage the rating of European
insurance companies would be poor managemen t and integration of corporate acquisitions, as well as
volatility in capital markets. These positive outlooks for 2007 have also been established due to the
2005 United States hurricane season, which has led to an increase in the cost of catastrophe risk
insurance.”35
“The largest shares in the total gross written premiums from non-life insurance are held by
non-railway transport insurance (38.7%), motor third party liability insurance (28.9%), fire insurance
natural disasters (11.8 %) and credit insurance ( 8.4%). "Although they have a relatively low weight of
3%, it was found that the property insurance claims accelerated, the premiums written in the first three

33 Bistriceanu, D, Gheorghe, 'Sistemul asigurarilor în România', Editura Economica, Bucuresti, 2002 .
34 Vacarel, Iulian, Bercea, Florian, 'Asigurari si reasigurari', editia a -II-a, Editura Expert, Bucuresti, 1992 .
35 www.scritub.com/economie/asigurari/PIATA -EUROPEANA -A-ASIGURARILOR133137141.php#_ftn1 [Accessed on
May 2019]

29
quarters for this category of insurance already accounting for more than 150% of the total registe red in
this class on throughout the year 2005 ".”36
Depending on certain variables, we can differentiate insurance from one country to another,
such as health insurance, the percentage of people in homes and cars and the pension system. In some
countries, n on-life insurance has a lower percentage than life insurance.
“According to the May 2005 report on the European insurance market, it is noticed that the
Western European market is maturing, and the Eastern European market is on the rise, hence the new
players are entering the market. In 2005, the European insurance market recorded an increase of 4.5%,
amounting to 978 billion euros.”37
Although the European insurance market is steadily growing and showing positive results, it
is behind the United States mark et where the GDP contribution exceeds 10% of it. This situation is
also due to the social security systems that have determined over the years the existence of much larger
life and health insurance markets in the United States.
“According to EUROSTAT stati stics, the employment rate increased by 0.5% between 1995
and 2004, but more importantly, the number of persons employed in insurance between the ages of 50
and 64 increased by 27% in this period. The prospects are, however, excellent. In 2004, Europe
mana ged to dethrone North America, taking its place for the first time in its history as the largest
insurance market in the world. With 36.9% of all global insurance activity, Europe (including both
Western and Eastern Europe) has advanced 0.9% North America in the rankings of the largest
insurance markets, worldwide.”38
In 2004, the United States and the European Union hold the majority of the world's insurance
market, with the United States accounting for 33.8% of the world's subscribed premiums and the EU
with 34.4% of all subscriptions. At the level of the countries of the European Union, a total of over 896
billion euro of subscribed premiums was recorded, this amount is divided into life insurance p remiums
worth over 529 billion E uros and non -life insuranc e has premi ums worth more than 367 billion Euros.
2.2. All-time m ain Markets in Europe

The United Kingdom has the largest markets in the European Union, namely Lloyd’s Market
and the London Market.

36 www.wall -street.ro/articol/International/23267/Evolutia -pozitiva -din-2006 -a-asigurarilor -europene -va-continua –
si-in-2007/pagina -1.htm l [Accessed on May 2019]
37 www.cea.assur.org , Annual Report 2005 -2006 [Accessed on June 2019]
38 www.1asig.ro , Ce inseamna asigurarile pentru economia europeana? [Accessed on Jun e 2019]

30
2.2.1. Lloyd’s Market – history and characteristics

For over 300 years, Lloyd's market has matured as an insurance market, or as a stock market.
This is an insurance market, not an insurance company but also a corporation, comprising a subscriber
community, each accepting insuran ce claims according to their ow n subscription criteria. Unlike
traditional insurance companies, within Lloyd's institution, the mutuality of insurance is the one that
guarantees the performance of the operations.
“We can speak of Lloyd's since 1688 as an international dimension. The nam e comes from the
name of a café owner on the eastern outskirts of London, namely Edward Lloyds. During this time, the
Tower Street cafe negotiated business and subscribed to the British merchant marine insurance. This
place has become famous due to correct information and the elimination of unrealities, wind speed,
storms, shipwrecks, sea transport, freight available, the café becoming a reference center and a
maritime insurance market.
Realizing the importance of the place, after moving to Lombard Street, No. 16, Edward
Lloyds created a special place for discussion, set up a platform where various merchants'
announcements were made, and a table where useful information was written about ships,
merchandise, and more.
In 1871, members of the Lloyd's subscribe rs' community were united by the 'Act of
Parliament' in a corporation known as Lloyd's, with Lloyds' leading business leadership, the protection
of Lloyd's members' interests, the collectio n, publication , and broadcasting information, but it does not
take responsibility for the risks provided by its members .”39
Currently, Lloyd's is headquartered in Lloyd's building on Lime Street, City of London. If
initially this market was destined for maritime insurance, towards the end of the 19th century began the
unde rwriting of non -maritime insurance.
Examples o f the most common insurance are liability insurance, theft, fire, accidents, means
of transport and goods transported, in transit or stored, damage, animals, etc. Simultaneously, certain
types of insurance were introduced such as the first insurance policy for cars , the first insurance policy
for satellites, the first housing insurance policy against the risk of breakage, the first insurance policy
for airplanes and the first comprehensive coverage of the goods in transit .
Characteristics specific to this market worth mentioning:
-Lloyd's business is brought by over 164 authorized brokers
-Over 72,000 customers worldwide today

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-The insurance and reinsurance market of Lloyd's are traded in more than 100 countries
-More than half of Lloyd's trades are sold outside of UK
-The market employs 11 Lloyd's authorized consultants
-The risks proposed by brokers for their clients are subscribed by 44 managing agents
-1017 corporate members and 1124 individual members who are grouped in 62 unions focus
on Lloyd's market to provide customers with the best insurance arrangements at competitive prices.
Since 1868, they have been accepted as members and individuals from outside the UK and
since 1967 women have been accepted among Lloyd's members. Members are organized in trade
unions led by short -term life insurers, aviation insurance, general insurance, motor i nsurance , and
maritime insurance.
Lloyd's risk underwriting support stocks are brought by members of this market. These
members have been divided into two categories since January 1994. Thus, we have corporate members
and individual members, also known as "Names". Corporate members are legal persons who have to
deposit at Lloyd's funds at least £ 500,000. As for individual me mbers, in 1998 they were 6825; they
were represented by individuals who accepted on their own account covered insured risks. Since 1968,
they could have any nationality but must be domiciled in the United Kingdom or the Commonwealth.40
The following conditi ons had to be fulfilled by each person to be admitted as a member:
-Integrity
-Recommendation of 5 Lloyd's subscribers
-21 years – minimum age
-Tracking insurance on your own behalf with unlimited liability to be accepted
– More than 250,000 pounds of weal th
– There is no need for experience or knowledge in the field of insurance
– Depending on the volume of business that can be traded, a certain level of security needs to
be offered.
Three types of agents operate on the Lloyd market such as:
-Agents that p rovide information and assist other members’ agents to pay damages
-Agents of members who have the duty of service companies to manage and advise the
business of individual subscribers
-The coordinating or subscription agencies have direct relationships wi th member agents and
licensed advisors, not with subscribing members. They keep the accounting records of the activity of

40 www.lloyds.com [Accessed on June 2019]

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the companies that they organize and simulta neously publish the financial se ttings and remunerate the
active members of the market.
“Lloyd's Market has a three -stage management system:
1. The Lloyd's Board is a statutory body that includes members elected from active and
external members and an individual appointed by Lloyd’s and approved by the Governor of the Bank
of England. Since 1 J anuary 1993 , the Council has acted in a tripartite structure following the
establishment of the Lloyd's Regulatory Board and the Lloyd's Market Board.
2. The Market Board is responsible for developing strategies and business development on
Lloyd's market b y developing common standards and overseeing the placement of risk effectively.
3. The Regulatory Board has the task of developing the rules and procedures of the market, as
well as its supervision. ”41
“The main types of i nsurance that are traded on Lloyd's market are grouped into four sub –
markets: marine insurance, non -maritime insurance, aviation insurance , and auto insurance.
Marine insurance is the oldest at Lloyd's, dating back over 300 years, during the café. Lloyd's
is considered to be the most import ant maritime insurance market, ensuring everything related to
maritime activity: oil platforms, cargo ships, oil tanks, boats, yachts, marine scientific research. About
20.5% of all Lloyd's market premiums come from this segment. Here, over 13% of internat ional
marine insurance is placed.
Non-Maritime insurance involves providing protection for the risks of fire, calamity, theft,
professional liability, nuclear risks, animal insurance, computer fraud, seizures, sickness, accidents,
short -term life insurance . Today, this market is the most important in terms of earnings and accounts
for about 52% of Lloyd's market premiums.
Aviation insurance, which has evolved as an adapted version of maritime insurance, provides
any type of aircraft: airplanes, helicopters, reaction planes, satellites. The first life insurance policy was
concluded in 1911 to provide a commercial aircraft for the first transatlantic flight. Currently, over
25% of international aviation insurance is placed at Lloyd's.
Motor insurance covers al l types of car risks. On this market are traded much of the car
insurance in England (16%) .”42
The Lloyd's market also provides a wide range of unusual risks, besides the four categories of
insurances such as the pianists 'hands, footballers' feet, singer v oices, etc.

41 www.lloyds.com [Accessed on June 2019]
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Lloyd's award -winning marketplace is well -received. Frank Sinatra, Richard Burton,
Elizabeth Taylor, Mye West, Sir Laurence Olive, Gene Kelly , and Edward G. Robinson are among the
great names. For filming made for Superman, Christopher Reeves w as insured for £ 20million. Kerri
Wallace, the South African actress who promoted the movie Star Trek, after she completely cut her
hair, asked for insurance to cover the risk that her hair will not grow as different as she had before.
The music stars mark et is also Lloyd's. They are committed to ensuring any risks of
cancellation of concerts, personal goods , and musical equipment. Among the best -known insiders of
the market in the last 15 years were Michael Jackson, Duran Duran, Phil Collins, Eric Clapton, Billy
Joel, Bob Dylan, Bros, Genesis, etc.
This market has been favored by some of the world's biggest athletes, such as footballer Pele,
tennis player Bjorn Borg, boxer Leon Spinks as well as entire hockey or basketball teams.
“Customer imagination went hand in hand with the innovation and openness of Lloyd's
subscribers. Here are some examples of the most unusual risks that have been secured in this market:
– A film-maker's insurance that ensured that the Loch Ness monster will not appear during the
filming;
– A radio station in Memphis, Tennessee, who offered a $ 1 million prize to the one who
would find Elvis Presley alive, assured himself against this risk;
-40 members of Derbyshire 'Whiskers Club' who secured barbate for the £ 20 each against the
risks of fire and theft;
-A company in Du rham, which has secured the Suz anne Mizzi model for £ 10m for a 3 -year
term. The company was to be compensated if Suzanne had suffered a serious bodily injury that would
have destroyed her underwear body;
-A business co mpany in Verona (Italy) has secured £ 1m against the rain that would have led
to the cancellation of 42 outdoor shows. ”43
2.2.2. The London Market – history and generalities

"London Market is the oldest and largest international insurance and reinsurance m arket.
There are insurance transactions around the world, almost three -quarters of the number of insurance
and reinsurance companies operating as foreign companies, among the largest in the world. This
market comprises
– Lloyd's subspecies

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– British compan ies
– British professional reinsurance companies
– Professional reinsurers from other countries
– General companies from other countries
– P & I Clubs (P & I Clubs)
– Insurance and reinsurance brokers"44
Most insurance from Japanese and United States compan ies are concentrated on the London
market for a large part of national insurance companies in developing countries. All types of insurance
and reinsurance are subscribed to this market in all known forms and methods, these being
concentrated in the vast ma jority of catastrophe insurance transactions such as insurance for goods, air
transport and maritime transport.
A well -earned but at the same time privileged status is attributed to the London market. Here
is the center of the insurance market for the bigg est industrial risks. Here is also the meeting place of
the largest reinsurers in the world with the purpose of concluding different contracts. In the 1990s, the
London market lost a lot of ground due to the crisis it passed through. In the range of 10 -15%, the
market segment is currently in the non -life insurance sector as well as in the large industrial sectors.
However, the strong position on the aviation and maritime insurance market has been preserved.
The London market continues, despite these disadva ntages, to present a wealth of significant
benefits. The specialized services offered by the market, the high density of brokers and insurers and
the super -developed infrastructure are just some of its strengths. The intensification of these strengths
is being pursued through closer collaboration between the International Associat ion of Subscribers
(IAS) and Lloyd's group. Optimizing the administrative process is being pursued by introducing new
standards.
One additional way to confirm that London remains t he most developed market for risk
coverage is to allow access to the London market for brokers outside the UK. Transactions that are
concluded on this market are specifically aimed at covering complex, very high risks and, at the same
time, among the most unusual ones. Many of the insurance that is considered unavailable in most of
the world markets are exclusively found i n the London market. The constant collaboration of members
is a specific thing on the London market so Lloyd's syndicates operate as bidd ers and brokers as agents
of demand.

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The heart of the London market is made up of over 200 companies and 140 brokers. At the
same time, a pertinent infrastructure has been developed and well established by consultants, lawyers,
actuaries , and accountants, so 50,000 jobs are offered by the London market to capable people.
Another aspect that can be considered is that after New York, the second largest banking center in the
world is London. Collaboration is a very close relationship between the insurance and banking sectors,
especially in the context of the new options for ri sk financing and risk transfer.
2.3. The improvement of M arket Insurance in Romania

“Regarding Romania, with the accession to the European Union on January 1, 2007, there was
an increase in th e insurance market, which is different from the other EU Member States. In 2005, the
Romanian insurance market grew by 18.8%, thus ranked fourth in Europe's highest -growth markets.
The Romanian insurance market increased by 18.8% in 2005, with only three c ountries, Liechtenstein
(up 80.5%), Portugal (25.7%) and Luxembourg (23 .1%). Revenues earned by European insurers in the
first year ended last year exceeded the value of 970 billion euros, according to the CEA report. In
Romania, these revenues totaled 890 million euros, ranking Romania ranked 25th in Europe.”45
The UK is ranked first in Europe with a premium income of more than 220 billion euros, with
France's second largest position with revenues of over 174 billion euros and Germany's third position
with a total of over 158 billion euros euro.
As for the insurance market in our country, the companies subscribed gross premiums worth
over 1.2 billion euros in 2005, and for 2006 an estimated gross premium written of approximately 1.5
billion euros were estima ted.
In 2006, according to a Russian publication, namely "The Insurer", the Romanian insurance
market occupies the 8th position in a top that relies on the insurance performances of Eastern and
Central Europe and of the states that are part of the CIS – Commonwealth of Independent States.
“The Romanian companies that are among the top 100 life insurers are ING Life Insurance,
ranked 30th with a market share of 38.29% in 2006, and AIG Life, ranked 77, with a market share of
12 14%. Also, among the top 100 in surance companies in Central and Eastern Europe and CIS,
Romania is represented by Allianz -Tiriac, ranked 25th, with a 22.41% market share on the national
market, Omniasig, on position 45, and Asirom ranked 49th. In the second half of the ranking, BCR

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insurance companies are ranked 59th, Asiban, 71, Astra -Uniqua on position 86, and 100th place Unita
VIG.”46
“Generali Asigurari subscribed, in the period January – Septem ber 2007, a total gross
premium of 281 million lei, 34% more than in the same period of the previous year. Gross premiums
written for general insurance amounted to 238.5 million lei, about 30% more than in the same period
of the previous year. The best -selling types of insurance in the company's portfolio were car insurance,
followed by building and content insurance, as well as individual life insurance.
Units Insurance Company subscribed to 336.9 million lei in the first nine months of 2007,
registering an increase of 83% compared to the s ame period of the previous year when the gross
premiums that were written amounted to 184.2 million lei. The Civil Liability Class posted an increase
of 108% compared to the 2006 reference period, according to Unita representatives, with gross written
premiums of 145.4 million lei, while the underwritings relat ed to CASCO insurance recorded the most
significant evolution, of 138%, up to 143.4 million lei.
BCR Life Insurance registered in the first nine months of 2007 the value of the gross written
premiums of 60.52 million lei, exceeding by 89.13% the similar pe riod of the previous year. The value
of the company's assets amounted to 141.30 million lei, up 41% compared to the same period of the
previous year. The value of the gross profit registered in this period is 3.7 million lei.
Aviva Romania also had very go od results in the first nine months of 2007, with the group
registering underwritings of just under 59.13 million lei, up 26.88% compared to the same period last
year. As for the assets, the evolution was 44.11%, their value reachi ng over 180.93 million le i as of
September 30, 2007.”47
The risk of non -payment of receivables is covered by commercial credit insurance, namely
the risk of a debtor not being willing or unable to pay. Essentially, this type of insurance contract
covers the creditor or the provider against the losses that are due to the client's inability to pay or
insolvency.
Non-payment at maturity can be ensured by these policies, and the insured amoun t can
contain mostly interest in scandal, penalties, transport and insurance costs and taxes suc h as TVA. The
customer's creditworthiness is verified by the insurance company that simultaneously issues a credit
report to the vendor so that a credit limit can be granted to the provider. A credit limit may be set or
discretionary by the insurer, at the creditor's request, only if the debtor does not appear to be

46 www.adevarul.ro Articol ,,Romania are a opta piata de asigurari din Europa'' din 6 noiembrie 20 07, [Accessed on
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outstanding in the last 12 months. The p olitical risk or even risks during the pre -delivery period can be
ensured.
“Commercial credit insurance policies can be concluded either for the entire bu siness
portfolio or for 85% of the activities that support a company's turnover or for the largest clients. The
insurance premium rate is between 0.4% and 0.8%. The first insurance premium is calculated by
multiplying the insurance premium rate by one year 's estimated turnover. On the Romanian market, the
maximum liability is about 300 times the value of the minimum premium or a fixed amount. The
insurance period on which commercial credit agreements can be concluded is one year, with the
possibility of aut omatic renewal.
The Insurance Supervisory Commission (CSA) has decided to reduce the contribution rates of
insurance companies to the Guarantee Fund for 2007, from 0.5% to 0.3% for li fe insurance and from
1% to 0. 8% for non -life insurance. Percentages refe r to the volume of gross premiums earned from the
direct insurance business. '' Due to the contributions made so far, the Guarantee Fund can act as a
protector of both insured persons and third parties who are harmed if an insurer is declared insolvent,
and this situation can never be excluded in a market economy ", the CSA president said.”48
Even in Romania, they began to catch "eccentric" assurances. Epoch cars, artworks , and even
extreme sports have become just a few of the products that get assured. Joke s such as if you break a
foot is actually a chance to change your bad luck into a source of money or before jumping the rope do
not forget to make your insurance policy. In cases of this kind, different factors may influence the
insurance premium such as t he level of participants, amateurs or professionals, the number of
participants or even playing conditions such as its characteristics or the distance of the shot.
The company that introduces this product, more precisely the insurance of extreme sports
practitioners, is City Insurance. It has two insurance plans, one for the territory of the country and the
other for outside the country. The first refers exclusively to medical emergencies such as medical
recovery, immobilization, fractures, surgery or denta l surgery and hospitalization. For those outside the
country, emergency medical care is ensured in the event of an accident only during extreme sports.
This includes, amongst those included in hospital, pharmaceutical, surgical, medical repatriation or, in
the worst case scenario, the repatriation of the insured in case of death. Insurance premiums can only
be negotiable for customized products. The maximum amount is 20,000 euros in the case of standard
products and in the case of personalized ones the amou nt can reach the policies up to 100,000 euros.
“City Sport Extrem can also be purchased online by visiting the company's website.
Compensations are paid within 15 business days, the company attempting to reduce the settlement

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time of five -day claims files. Ensuring artworks for different exhibitions may seem 'good' compared to
previous examples, but the risks are equally difficult to quantify. Generali Asigurari issued insurance
policies for the art objects present at the Dacia Augusti Provincia Exhibition, held at the History
Museum in Bucharest. In this case, the insured amount is 2.5 million euros.
Assurance includes, as a rule, material damage to exhibits both during exposure and during
transport. In this case, there is no maximum insured amount, and the first is calculated according to the
type of exhibits, their value and, finally, the conditions and the price negotiated with the international
reinsurer.”49
“The insurance companies authorized and regulated by ASF -Financial Supervision Authority
subscribe d in 2018 gross premiums in the amount of approximately 10.14 billion lei, up 4.5%
compared to the value registered in the previous year, according to the report of the Authority of
Financial Supervision.
Gross premiums written (PBS) for general insurance (AG) amounted to ROL 8.04 billion in
2018, up 4.6% year -on-year, and PBS related to life insurance (AV) were in the amount of
approximately 2.1 billion lei, 4.3% more than in 2017.
The year 2018 was characterized by an improvement in solvency ratios. At th e end of
December last year, all insurance companies fulfilled both the Solvency Capital Requirement (SCR)
and minimum capital requirements (MCRs). The SCR and MCR rates at the market level, calculated as
the ratio of the total eligible own funds to cover the capital requirements and the total capital
requirement, have recorded over -the-counter values. The SCR rate at the market level was 1.71, and
the MCR rate was 3.87.
At the end of 2018, the total gross technical reserves constituted by the insurance com panies
stood at over 16 billion lei, up by about 5% compared to 2017. ”50
In the last years 2017 and 2018 respectively, a change that is manifested in particular is the
consolidation of the life insurance segment which mentioned an appreciation exceeding the 4%
threshold in 2018 compared to the previous year. However, in 2017, there is a significant increase in
the life insurance segment, which increases by 21% compared to 2016, in terms of the volume of gross
written premiums in this sector.
29 insurance com panies were active in the market at the end of 2018, each of them regulated
and authorized by the Financial S upervisory Authority, which w ere divided into different sectors. Most

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of them, 16 of the companies only perform general insurance activities, 7 exc lusively deal with life
insurance and the rest of 6 practice composite activities.
A medium to a high degree of concentration characterizes the insurance market in Romania.
Approximately 89% of the total gross written premiums in 2018 were made by only 10 insurance
companies out of a total of 29 performing the activity at the end of the year.
Table 2 .1 – Companies with the largest volumes of gross written premiums and their share in
total (general and life insurance) in 2018:
Crt. Nr. Society Total market s hare
1 CITY INSURANCE S.A 14,64%
2 ALLIANZ – TIRIAC ASIGURARI S.A. 12,99%
3 OMNIASIG VIG(ex BCR ASIGURARI VIG) 11,56%
4 EUROINS ROMANIA ASIGURARE REASIGURARE S.A. 9,94%
5 GROUPAMA ASIGURARI S.A. 9,90%
Total (1 -5) 59,03%
6 ASIROM VIENNA INSURANCE GRO UP S.A. 8,55%
7 NN ASIGURARI DE VIATA SA 7,60%
8 GENERALI ROMANIA ASIGURARE REASIGURARE S.A. 6,29%
9 BCR ASIGURARI DE VIATA VIENNA
INSURANCE GROUP S.A. 3,60%
10 UNIQA ASIGURARI S.A. 3,47%
Total (1 -10) 88,55%
Other companies 11,45%
TOTAL 100,00%

General insurance
“The total gross written premiums for general insurance in 2018 amounted to 8,042,145,685
lei. The first 10 insurance companies that have subscribed premiums related to gener al insurance have
accumulated value of 7,724,934,618 lei, which r epresents about 96% of the total of this segment of
activity. ”51

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Table 2.2 – Ranking of insurance companies according to gross written premiums for general
insurance in 2018 :
Crt. Nr. Society Total market share
1 CITY INSURANCE S.A 18,47%
2 OMNIASIG VIG(e x BCR ASIGURARI VIG) 14,58%
3 ALLIANZ – TIRIAC ASIGURARI S.A. 14,58%
4 EUROINS ROMANIA ASIGURARE REASIGURARE S.A. 12,53%
5 GROUPAMA ASIGURARI S.A. 12,07%
Total (1 -5) 72,22%
6 ASIROM VIENNA INSURANCE GROUP S.A. 9,10%
7 GENERALI ROMANIA ASIGURARE REASI GURARE S.A. 6,53%
8 UNIQA ASIGURARI S.A. 4,38%
9 GOTHAER ASIGURARI – REASIGURARI S.A. 1,92%
10 POOL -UL DE ASIGURARER P.A.I.D. 1,91%
Total (1 -10) 96,06%
Other companies 3,94%
TOTAL 100,00%

Life insurance
“Gross premiums written by insurance companie s for life insurance activity rose by 4.3% in
2018 compared to the previous year. According to ASF, a high degree of concentration was maintained
in 2018, so the first 2 companies in terms of gross written premiums for life insurance business hold a
combin ed market share of 54%.
Also, 10 companies accounted for 97% of the total subscribed premiums on this segment,
with cumulative underwritings amounting to 2,037,813,281 lei.”52

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Table 2.3 – Ranking of insurance companies according to gross written premiums for life
insurance 2018:
Crt. Nr. Society Total market share
1 NN ASIGURARI DE VIATA S.A. 36,73 %
2 BCR ASIGURARI DE VIATA VIENNA INSURANCE
GROUP S.A. 17,39 %
3 BRD ASIGURARI DE VIATA S.A. 8,71%
4 ALLIANZ – TIRIAC ASIGURARI S.A. 6,90%
5 ASIROM VIENNA I NSURANCE GROUP S.A. 6,44%
Total (1 -5) 76,18 %
6 ERGO ASIGURARI DE VIATA S.A. 6,02%
7 GENERALI ROMANIA ASIGURARE REASIGURARE S.A. 5,38%
8 UNIQA ASIGURARI S.A. 3,84%
9 SIGNAL IDUNA ASIGURARE REASIGURARE S.A. 3,56%
10 GRAWE ROMANIA ASIGURARE S.A. 2,10%
Total (1 -10) 97,08 %
Other companies 2,92%
TOTAL 100,00%

The brokerage market increased by 3.5% in 2018
“Following the centralization of the re ports sent by the insurance and/ or reinsurance brokers
on 31.12.2018 (provisional data), there is an increase in the value of the intermediate insurance
premiums and life insurance premiums of 3.48%, from 6, 16 billion lei (2017) to 6.38 billion lei.
And the mediation rate was 62.92% in 2018, compared with 63.56% in 2017.
At the end of 2018, 342 authorized brokers (compared to 382 at the end of 2017) registered in
the records of the Financial Supervisory Authority, out of which: 28 companies with temporary
activity, 299 active companies , and 15 companies with suspended activity temporary.”53

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Table 2.4 – Evolution o f the degree of intermediation:

“In 2018, the volume of intermediate premiums for general insurance business (by 3.04%)
and for the life insurance segment (by 16.41%) increased. In the case of life insurance, a dou bling of
the volume of intermediate premiums took place between 2014 and 2018.
Ranking
The market leader remained SAFETY Broker, with a market share of 7.52%, followed by
MARSH – Insurance Broker (6.92%), TRANSILVANIA Broker Insur ance (5.48%), DESTINE Brok er
(5, 27%), INTER Broker (4.86%). ”54
Table 2.5 – The situation of the first 10 insurance brokers according to the total volume of the
first intermediaries in 2018:
Crt. Nr. Insurance and / or reinsurance broker Total market share
1. SAFETY BROKER DE ASIGU RARE S.R.L. 7,52%
2. MARSH – BROKER DE ASIGURARE -REASIGURARE S.R.L. 6,92%
3. TRANSILVANIA BROKER DE ASIGURARE S.A. 5,48%
4. DESTINE BROKER DE ASIGURARE -REASIGURARE S.R.L. 5,27%
5. INTER BROKER DE ASIGURARE S.R.L. 4,86%
6. DAW MANAGEMENT – BROKER DE AS IGURARE S.R.L. 4,13%
7. CAMPION BROKER DE ASIGURARE SI REASIGURARE S.R.L. 3,66%
8. UNICREDIT INSURANCE BROKER 3,64%
9. PORSCHE BROKER DE ASIGURARE S.R.L. 2,67%
10. MILLENIUM INSURANCE BROKER (M.I.B.) S.A. 2,41%
Total 1 -10 46,56%
Overall general premi um 100%

54 http://www.1asig.ro/Piata -Asigurarilor -2.htm [Accessed on June 2019]. Period Intermediate premiums (RON) Gross written premiums (RON) Intermediation degree (%)
Total,
out of which:
General
Insurance Life
Insurance Total,
out of which:
General
Insurance Life
Insurance Total
Gen
Ins Life
Ins
31.12.2014 4.553.370.570 4.440.078.309 113.292.261 7.823.474.414 6.448.556.518 1.374.917.896 58,20% 68,85% 8,24%
31.12.2015 5.217.310.211 5.088.347.613 128.962.597 8.534.919.541 6.957.416.634 1.577.502.907 61,13% 73,14% 8,18%
31.12.2016 6.200. 117.078 6.029.407.386 170.709.691 9.380.935.173 7.711.487.926 1.669.447.247 66,09% 78,19% 10,23%
31.12.2017 6.166.053.903 5.962.005.414 204.048.489 9.701.743.603 7.688.478.353 2.013.265.250 63,56% 77,54% 10,14%
31.12.2018 6.380.788.060 6.143.247.895 237.540.165 10.141.233.044 8.042.145.685 2.099.087.359 62,92% 76,39% 11,32%

43
“In 2018, the insurance and/ or reinsurance brokers reported income from the insurance
intermediation activity amounting to 1,095,337,930 lei, up 12.71% over the same period of the
previous year (971,812,823 lei).”55

55 http://www.1asig.ro/Piata -Asigurarilor -2.htm [Accessed on June 2019]

44
3. Specific products for car insu rance – The research

3.1. Research goal, questions , and hypotheses

In this chapter, the methodology of this study is explained. In the first section of the chapter,
the research design and justifications of the chosen methods are discussed. The second se ction of the
chapter explains the sample for the study and the context in which the research was conducted. In the
third and last section, the steps of the interview analysis are explained.
Research design is defined as a framework of methods and technique s chosen by a researcher
to combine various components of research in a reasonably logical manner so that the research
problem is efficiently handled. The design of a research topic is used to explain the type of research.
For my research, I have chosen th e survey. For this, I will need the three main sections of research
design – data collection, measurement, and analysis.
In order to collect the needed data, I have made a 15 questions survey and because of the
subject, that not everybody has CASCO insuran ce, I had to pass the survey to a specific group of
people. Because, in order for my survey to be accurate, I needed people that are owning a driving
license and also CASCO insurance. So, for that, I did give the survey only to people I know. I asked
my fr iends and family that are meeting the necessary conditions to complete my survey in order to
analyze the data afterward. The data collection process took me 3 days, from the 21st of June until the
24th of June, and from my family, friends and friend’s fami ly I have collected 50 valid answers from
all around the country.
For measuring the data I have collected, I have used different charts and figures, in order to
show the results of my survey and the opinion of those that had been interviewed and to give me the
opportunity to analyze the specific data.
The main goal of my research is to analyze the importance of CASCO insurance among the
Romanian population , and what benefits this kind of insurance can provide.
As for secondary goals I want to see what is th eir income , to determine if they can afford such
insurance, how much are they willing to pay for these serv ices and how satisfied they are from this
deal.
Research questions include:
 What is your monthly income?
 How much are you willing to spend on CASCO i nsurance per year?
 How satisfied are you with the services provided from this insurance?

45
 How important do you consider assistance against natural disasters?
 What do you consider to be the ideal period for repairing a car after an easy, casual accident,
without casualties ?
Research hypotheses
As a hypothesis, I can say that I chose this license topic to find out why the Romanians buy
their CASCO insurance and how satisfied they are with it. Through these things, I want to see potential
issues with a direct l ink to the theme to find pertinent solutions after interpreting the results.
3.2. Research Methodology

Quantitative research is implemented in cases where it is important for a researcher to have
statistical conclusions to collect actionable insights. Nu mbers provide a better perspective to make
important business decisions. Quantitative research design is important for the growth of any
organization because any conclusion drawn on the basis of numbers and analysis will only prove to be
effective for the business.
The quantitative data in this study was collected using an online questionnaire which was then
distributed to a specific group, formed out of different people, with different age categories, sex and
occupation, from cities all around the country such as Iasi, Bucharest, Cluj, Botosani, Suceava, Bacau,
Constanta and Craiova, which have the necessary knowledge to answer these types of questions.
Taking into account the high variety of people who took part in completing this questionnaire,
we can s ee different opinions related to the topic and the questions asked so that we can obtain the
results necessary to determine the main purpose of the research.
3.3. Analyze and interpretation of the results

In this subchapter, we will analyze and interpret the r esults of the questionnaire. As
mentioned above, only people with a car and CASCO insurance have been involved in this
questionnaire to make the results as accurate as possible. These people are of different ages, from the
age of 18 to over 36, of both sexes, with varying incomes, and from cities all around the country such
as Iasi, Bucharest, Cluj, etc. So, being people who know about this type of insurance, we have asked
questions in a questionnaire strictly related to CASCO in order to determine exactly what we are
interested in.

46

Figure 3.1 – Frequency of owning a driving license

From the first question, as mentioned above, we find that all the persons who participated in
the completion of this questionnaire have a driving license, which makes the res ults analyzed in
relation to the debated subject to be relevant. Being an essential question for the exact completion of
the questionnaire, only positive responses were recorded.
As mentioned at the beginning of the chapter, only people with a driving lic ense were
interviewed for a higher degree of debate. Any negative answer would have led to the conclusion of
the questionnaire because the opinion of a person who does not have a driving license linked to a
specific type of car insurance is irrelevant. It is normal for a person who does not have a driving
license not to be interested in insurance of this type.
Starting from this first question, one of the most important aspects of CASCO insura nce must
be taken into account that, each insurance in part is wo rth a certain amount of money, depending on
the car, its conditi on, the year of production, etc., a fact which we will observe in the following
questions during the analysis of the questionnaire.

100% 0% Do you have a driver's license?
Yes No

47

Figure 3.2 – Frequency of age

The second question, relat ed to age, had a wider range of answers. The minimum age that was
added to the questionnaire is the age of 18, being the legal age from which you can hold a driving
license in our country, and on the opposite side have registered over 36 years, the highest being 54.
Thus, from the results presented in Figure 2, we can see that most of the answers are in the
category of people over 36 years, this option recording 19 responses out of a total of 50. In the second
place follows the opti on between the ages of 25 -30, with no less than 15 responses, followed by the
age range of 31 -35 years, which re corded a total of 9 responses. I n the last place, with the rest of the
answers available, namely 7 is the option of ages between 18 -24 years.
From the answers to this qu estion, we assert that CASCO insurance is preferred by older
people, because they are more aware of the possible dangers a car can encounter, and at the same time
very likely because of the fact that this type the insurance is quite expensive compared to o thers of the
same type and these people would have a more consistent income than a person aged 18 -25 who most
probably do not have a job , and probably is a student .
At the same time, due to their age, work experience, and income, these people afford more
expensive cars. But as a more expensive car comes in bundle with more expensive repairs and
expenses, they are most likely to have CASCO insurance to avoid some extravagant expenses for the
maintenance of an expensive car.
02468101214161820
How old are you?Between 18-24 years old
Between 25-30 years old
Between 31-35 years old
Over 36 years old

48

Figure 3 .3 – Frequency of incom e

The third question relates to the person's income. Taking into account that in our country the
minimum wage i n the economy is around 1300 RON , the first option to this question is an income of
less than 2000 RON , which goes up to the last answer, which implies an income of more than 3100
RON .
Thus, from the results shown in Figure 3, we can see that the first two most preferred response
variants are very close to one another. The best answer is the one involving an income between 2600 –
3000RON, with 18 ch oices, followed closely, only at one response distance, with 17 out of a total of
50 responses, more exactly, between 2000 -2500RON monthly income. 3rd place is occupied by the
alternative that implies an income of over 3100RON with 9 answers, and the last place, with only 6
answers, the variant which implies a monthly income less than 2000RON.
And it is normal, along with a good salary, to think about how to assure a good and expensive
product like a car and at the same time to try to minimize the expenses necessary for its maintenance or
in the unfortunate case of an accident or even in case of risk of vandalism.
Taking into account the results obtained in the previous question, it was expected that the
monthly revenues would be decent, if not large. So, af ter analyzing the chart and the results, we can
state that the majority of people with CASCO insurance have a decent salary from which they can be
deprived of a certain amount necessary for this insurance.
024681012141618
What is your monthly income?Under 2000 RON
Between 2000-2500 RON
Between 2600-3000 RON
Over 3100 RON

49

Figure 3.4 – Frequency of having CASCO insurance

This question is, as I mentioned at the beginning of the chapter, the second essentiality in this
questionnaire. Like the first question, all participants in the questionnaire gave an affirmative answer
to this, which is necessary for the results analyze d in relation to the subject being discussed to be
relevant.
As mentioned at the beginning of the chapter, only people with CASCO insurance were
interviewed for a greater degree of debate. As with the first question in the questionnaire, any negative
answe r would have led to the conclusion of the questionnaire because the opinion of a person who
does not have such insurance is irrelevant.
Although there are people who don't have a driving license, or even if they have, they don't
have CASCO insurance for t he car and yet know about this, through this questionnaire I have tried to
find the opinions of people who have an active contract with an insurance company.
This provides greater accuracy to the questionnaire and will thus help us to better reach th e
prim ary focus of the analysis, so that we can reach a conclusion pertinent to the subject.

Do you have CASCO insurance?
Yes
No

50

Figure 3.5 – Frequency of the CASCO insurance payment per year

This fifth question of the questionnaire refers to how much people are willing to spend on
CASCO insu rance per year. The first answer that would involve the minimum amount a person would
be willing to pay is below 1500RON, during the answers the sum rises to over 4600RON per year,
which is the last answer available.
Thus, from the results presented in Fig ure 5, we can note that most of the persons who took
part in filling in the questionnaire are willing to pay for CASCO insurance per year the sum of 1500 –
3000RON, this question accounting for almost half of the total, more precisely 22 of all 50 replies
recorded. The second most selected option is that the amount would not exceed 1500RON per year, a
choice taken 14 times. Up next is the answer with the amount between 3100 -4500RON which was
selected 11 times, and the last place was the option of paying more than 4600RON annually for the
CASCO insurance, which had only 3 replies.
From the answers received at this question, we assert that in Romania, given the low salaries
and high expenses, the population is not willing to allocate a very high amount for CASCO insurance.
As mentioned in the first question, each person pays a different amount to CASCO depending on the
car, but each one wants an amount as affordable as possible, regardless of other factors such as
income, age or vehicle ownership.
0510152025
How much are you willing to spend on CASCO
insurance per year?Under 1500 RON
Between 1500-3000RON
Between 3100-4500RON
Over 4600 RON

51

Figure 3.6 – Frequency of satisfaction with the services provided from CASCO

The purpose of the sixth question was to find the degree of satisfaction of the policyholder
with regard to the services provided by this type of insurance. The four variants of response are from a
very small degree of gratitude to the highest.
Thus, in Figure 6, it is clear that almost all those who took part in the questionnaire, namely
40 people out of 50, have chosen the "satisfied" option. On the second position, 4 votes were the "very
satisfied" variant, and the last two options were equal, the ones "dissatisfied" and "very unhappy ", both
registering 3 votes each.
From the answers to this question, it is quite clear that those who took part in filling in the
questionnaire have a high de gree of satisfaction with the services offered by the CASCO insurance.
The chart shows that the satisfaction options recorded almost all the available answers, namely 44 out
of 50, only 6 acknowledging that they are not satisfied with this insurance.
So, w e can say that out of people who already have CASCO insurance, almost everyone is
happy with it. It is also normal because this type of insurance takes care of a rather expensive good that
requires high expenses and is usually preferred by the population t hat owns an auto vehicle.
0 5 10 15 20 25 30 35 40 45How satisfied are you with the services
provided from this insurance?Very satisfied
Satisfied
Dissatisfied
Very unhappy

52

Figure 3.7 – Frequency of satisfaction related to the time the car needs to spend in service

This question makes the participants at this questionnaire to choose their degree of
satisfaction with the time their car needs to spe nd in service. Just as with the previous question, the
variants of the answer assume a degree of satisfaction that can be recorded and can then be interpreted.
They move from a feeling of major disappointment to a high degree of satisfaction.
As shown in F igure 7, we can see that most of the answers, namely 28 out of 50, which are
more than half of the responses, have chosen the "satisfied" option. In the second place was the
"unsatisfied" option which was chosen 17 times, followed by "very satisfied" with 3 answers, and the
last "very unhappy" that was chosen only twice.
From the answers we have been given to this question, we can say that most are satisfied with
the time their car needs to spend in service. This option was chosen by more than half of the p eople
who took part in filling in the questionnaire, and if we add the 3 responses chosen with the degree of
"very satisfied", they were chosen together 31 times, a total of 50. This may be due to patient people
who have taken part in completing the questi onnaire, peop le who are aware that a car can not stand for
only 20 minutes in service, but it takes a longer time to check, replace and repair some components
car.
Very unhappyDissatisfiedSatisfiedVery satisfied
051015202530
How satisfied are you
with the time your car
needs to spend in
service?Very unhappy
Dissatisfied
Satisfied
Very satisfied

53

Figure 3.8 – Frequency of satisfaction related to the duration of creation of the damage fi le

The 8th question has the purpose of seeing the frequency of the CASCO's satisfaction with
the duration of the creation of the damage file. Just as with the previous question, the variants of the
answer assume a degree of satisfaction that can be recor ded and can then be interpreted. They move
from a feeling of major disappointment to a high degree of satisfaction.
Here, out of a total of 50 people interviewed, the vast majority, more than half and more
precisely 27 people chose the "satisfied" option. This is followed, with 18 responses by the
"unsatisfied" option. In 3rd place is the "very satisfied" option, which recorded 3 responses, followed
by "very un happy " which had only 2 answers.
From the answers to this question, we state that the majority, na mely 30 people out of a total
of 50, are satisfied with the duration of the damage file creation. They may be satisfied with the fact
that they would rather wait for the insurance company to meet this goal than to have to bear the
expenses on their own and at the same time all the documents that are necessary for the event of an
accident, vandalism, etc.
The answer to this question also varies depending on the insurance company, each of which is
a slightly different period of time for carrying out this file .
051015202530
How satisfied are you with the duration of creation of the
damage file?Very unhappy
Dissatisfied
Satisfied
Very satisfied

54

Figure 3.9 – Frequency of satisfaction related to the time between the announcement of the damage
and the consultancy given by the insurance company

Question 9 refers to the client's satisfaction with the time period between the announcement of
the d amage and the consultancy provided by the insurance company. Just as with the previous
question, the variants of the answer assume a degree of satisfaction that can be recorded and can then
be interpreted. They move from a feeling of major disappointment t o a high degree of satisfaction.
Thus, from the results presented in Figure 9, we can see that exactly 50% of the right answers,
namely 25 out of 50 refer to the "satisfied" option of the question. This is followed by the "unsatisfied"
version, which garne red 22 replies, followed by "very satisfied" that was chosen twice. The least
chosen option, which has only one reliable answer, is "very unhappy".
Since the two variants are very close, the ones "satisfied" and "unsatisfied", being separated
by only 3 vot es, it is difficult to make a concrete analysis. To this question, the population was divided
into two groups, those who are satisfied and those who think that this can be improved. Overall, this
period between the announcement of the damage and the consul tancy given by the insurance company
could be improved by CASCO insurance in Romania, given the fact that is the first question from the
survey that gathers so many negative answers.

How satisfied are you with the time between
the announcement of the damage and the
consultancy given by the insurance company?
Very unhappy
Dissatisfied
Satisfied
Very satisfied

55

Figure 3.10 – Frequency of satisfaction related to the time required to establish the damages

Through this question, we wanted to see the degree of satisfaction of the people who took part
in completing this questionnaire regarding the time required to determine the damage to the vehicle.
Just as with the previous question , the variants of the answer assume a degree of satisfaction that can
be recorded and can then be interpreted. They move from a feeling of major disappointment to a high
degree of satisfaction.
Thus, we can see that from the results presented in Figure 10, the most chosen option, the one
"satisfied", gathered most of the answers, namely 31 of the total of 50. This is followed by
"unsatisfied" which , in the case of this question only 17 responses are sharpened. The other two
possible options, those at the ex tremities, were chosen only one time each.
Based on the data obtained, we affirm that the majority of the population is satisfied with the
time necessary to establish the damages. This is due to the fact that, with the quicker determination of
damages, the owners of the vehicles can make the necessary repairs faster and thus re -enter in the
possession of the vehicle with the possibility of using it. Knowing that this determination is done in
service, everyone would want it to be as fast as possible. Apparen tly for most this criterion is met.
05101520253035
How satisfied are you with the time required to establish the
damages?Very unhappy
Dissatisfied
Satisfied
Very satisfied

56

Figure 3.11 – Frequency of the necessity of a roadside assistance

By reaching the 11th question, we end with the analysis of the degree of satisfaction present
in the last CASCO questions. Here we present the opinion of the population that took part in
completing the questionnaire on the need for a roadside assistant. The variants of the answer here vary
from the point of view of absolute useless to the greatest degree of necessity.
Thus, from the results recorded in this question and presented in Figure 11, we can see that
half of the responses, namely 25 out of 50, consider this road assistance "necessary". At a small
difference, with only 3 votes behind is the second option that picks up 22 answers, the one that is "very
necessary." The "very useless" option was chosen only 3 times and the last place, the "unnecessary"
variant that was not chosen by any of the participants to complete the questionnaire.
It is therefore very easy to say, thanks to the obvious answers that make it almost unanimous
that the roadside assistance offered by the CASCO insurance is necessary, if not very necessary
because it can happen to anyone and anywhere. There are not many people who would consider a
roadside problem or a motor problem a thing to be neglected because most of the problems involve the
towing of the car, a possibility easily achieved by car insurance.
How necessary do you consider a roadside
assistance?
Very useless
Unnecessary
Necessary
Very necessary

57

Figure 3.12 – Frequency of importance of assistance against natural disasters

In the 12th question, I'm trying to find out the opinion of the interviewees about the
importance of assistance against natural disasters. They had to choose between 4 different variants,
from the least important to the expression of a very high degree of importance.
So, analyzing the data recorded and shown in figure 12, we can see that the most chosen
option by the persons who took part in filling in the questionnaire is "very important" that has gathered
more than half of the votes, namely 27 of the total 50. The "important" variant is the next on e with no
fewer than 19 votes, followed by "very unimportant" that put 3 votes. The last answer, the
"unimportant" was chosen just one single time. This is again a question with some easy to analyze
results, the answers gathered being almost unanimous abou t the importance of assistance against
natural disasters.
Therefore, we can say that almost all the persons holding CASCO insurance, who completed
the questionnaire, consider this type of assistance a very important one, if not important. As far as
natural disasters are concerned, they can not be predicted or controlled, so it is a major benefit of
having a CASCO insurance that can provide you this benefit by relieving the insured of major and
unpredictable care.

0 5 10 15 20 25 30How important do you consider
assistance against natural disasters?Very important
Important
Unimportant
Very unimportant

58

Figure 3.13 – Frequency of insurance agai nst the risk of vandalism

In question 13, we wanted to see how many people have insurance against vandalism. As a
closed -type of question, only two choices of answers were offered to the participants to fill in the
questionnaire, the positive and the nega tive one.
Thus, from the results recorded in this question and presented in Figure 13, we can see that
the minimum difference between the two responses was recorded. People who DO NOT have this type
of insurance against the risk of vandalism are 26 and tho se who preferred to cover this risk are in the
number of 24.
Taking into account that such a small difference between the variants of the answer has been
recorded, we can say that this type of vandalism insurance can be considered a personal option. Some
people who live at the house, have a yard or garden, a garage or special place to park, maybe on a
guarded parking lot, or even if they live in a good area of some cities, cannot consider this risk as very
important one .
While other people who can live in some less -friendly areas of the city, they can wake up at
any time with a surprise such as a key mark on the car, a broken or stolen mirror, or even a breakage of
the windscreen, the rear window or the other windows of the vehicle.
05101520253035404550
Do you have insurance against the risk of vandalism?No
Yes

59

Figure 3.14 – Frequenc y of importance of being insured against the risk of vandalism

The 14th question is in direct connection with the previous question and can be considered a
continuation of it, in order to help us go deeper into the details. Here is the degree of importanc e
offered by insured persons who took part in completing our questionnaire on having vandalism
insurance. They had to choose between 4 different variants, from the least important to the expression
of a very high degree of importance.
Thus, from the result s recorded in this question and presented in Figure 14, we can see that
the answer that held the most elections, namely half of the total number (25 answers out of 50) is the
variant that considers this type of insurance as being an important one. The seco nd most important
answer is "very important", which was chosen 10 times, followed by "unimportant" which is just at
response behind, and was chosen 9 times. The least chosen answer is "very unimportant" that had 6
responses.
While this question is related to the previous one, we can see that, although most respondents
said they did not have this type of assurance in question 13, some of them admitted that it is actually
important. Probably some of them do not have this type of insurance and would like to ha ve one or
even think of buying it in the future.
0510152025
How important do you consider to be insured against the risk of
vandalism?Very unimportant
Unimportant
Important
Very important

60

Figure 3.15 – Frequency of the period for repairing a car after an easy, casual accident without
casualties

The last question in this survey refers specifically to the period necessary for repairing a car
after an easy, casual accident without any casualties. To this question were given 4 possible answers
directly addressed to the period needed for the respective action. This range is from the first response
that consists of less than 2 days to the last on e, which involves waiting for more than 15 days.
Therefore, we can see from the results recorded in this question and presented in Figure 15
that more than half of the interviewed persons, namely 27 out of 50 have chosen the ideal period as
between 2 -7 days. After that, the shortest period, less than 2 days, is the following choice with 21
replies, followed by the two remaining choices available, those between 8 -15 days and more than 15
days, both of them recording only one answer each.
From the data obtai ned from the last figure, we assert that the population that owns a CASCO
insurance prefers a shorter waiting period for repairing the car after an easy, casual accident without
casualties. Considering that it is not a serious accident, the choices of thos e who filled out the
questionnaire are also understood, as it would not take a very long time for such repairs.

051015202530
What do you consider to be the ideal period for repairing a
car after an easy, casual accident, without casualties?Less than 2 days
Between 2-7 days
Between 8-15 days
More than 15 days

61
Conclusions

The motor insurance sector is relatively underdeveloped in our country, with the low level of
development of this sector especiall y when international comparisons are made. On the basis of this
situation are especially structural conditions, as well as the low level of the motor rate in Romania.
In recent years, the share of motor insurance in total non -life insurance has grown stead ily.
The increase in underwriting in car insurance is both the result of the increase in the number of
insurance policies and the increase in insurance premiums, the motor of growth being represented by
civil liability insurance for motor vehicles.
So, thr ough this license theme, I wanted to see how much this CASCO assurance is and how
much potential evolution it would have. Th e main purpose of my research was to analyze the
importance of providing CASCO to the Romanian population and what benefits this typ e of insurance
can provide. To achieve the main goal, research was required. For my research, I have chos en the
survey. For this, I needed the three main sections of research design – data collection, measurement,
and analysis.
These 3 steps have been met. The data was collected using a questionnaire of 15 questions
strictly related to CASCO. Measurement was performed using different tables and figures and the
analysis was written based on the results obtained.
For the research methodology, the quantitative data in this study was collected using an online
questionnaire which was then distributed to a specific group. After analyzing the results obtained, I
notice that this specific group consists of 18 to 54 -year-olds of both sexes, with incomes between
appro ximately 2000RON to over 3100RON per month, from cities all around the country such as Iasi,
Bucharest, Cluj, Botosani, Suceava, Bacau, Constanta and Craiova, and each one of them owning a
driving license and a CASCO insurance.
After analyzing the results obtained, it can be noticed that the persons who took part in the
questionnaire are agreeing to pay a decent amount per year for this type of insurance (see Figure 2.5),
that they show a good degree of satisfaction related with the services offered by CASC O insurance
(see Figure 2.6).
In the next 3 questions related to the time the car needs to spend in service (see figure 2.7),
related to the duration of creation of the damage file (see figure 2.8), related to the time between the
announcement of the dama ge and the consultancy given by the insurance company (see figure 2.9) and
even related to the time required to establish the damages (see figure 2.10) opinions are slightly more
divided. There was not such a big difference between basic answers, such as “ satisfied” or

62
“unsatisfied”, but the predominant response that has been chosen most of the time is about the positive
type of satisfaction. This was the most common response in the satisfaction segment.
The 11th and 12th questions were the ones that gather ed the most positive opinions. At the
11th question, only 3 people who took part in the questionnaire did not see roadside assistance as
necessary (see figure 2.11) . The remaining 47 considered it important or even very important, making
it an almost unani mous opinion. As for the 12th question, it has gathered 46 positive responses out of
the total of 50, to the importance of assis tance against natural disasters (see figure 2.12) , making it also
an almost unanimous opinion.
Even if at question 13, which is related to the frequency of vandalism insurance, 50% + 1
responded that they did not hold it (see Figure 2.13), at question 14, on the importance of this part of
CASCO insurance nearly ¾ of the responses registered were positive (see Figure 2.14). So, alth ough
not all of them have this insurance, the vast majority consider it an important feature of CASCO
insurance.
The results we have obtained at question 15 shows us that the persons which completed our
survey would prefer a shorter time for repairing a ca r after an easy, casual accident without casualties
(see figure 2.15), because 48 responses out of a total of 50 set a maximum of 7 days that would be
willing to wait in this case, 21 of whom would prefer problems to be solved within less than 2 days.
Therefore, after collecting the necessary data by the questionnaire methodology distributed to
a select group of 50 persons, all of them holding a driving license and CASCO insurance, we can say
that the results obtained directly related to this type of insurance are concrete. After interpreting the
results, I can state that the main goal of analyzing the importance of CASCO insurance among the
population of Romania and what benefits this insurance can provide has been achieved. CASCO
insurance is alread y important in our country, with continuous development and with a large number
of insurers , a number which is in continuous growth.
Also, through the data obtained, I can assert that also the secondary goals, the ones to see the
income of each insured, to determine if they can afford this insurance, to find out how much they are
willing to pay for these services and what degree of satisfaction they get from this insurance policy,
have also been achieved. Logic says that the lower the income, the less -expen sive the goods should be.
So a low -income person should have a cheaper car, in which case the cost of CASCO insurance will be
lower, and vice versa. At the same time, the benefits offered by CASCO are recognized by people with
this insurance, giving them a high degree of satisfaction.

63
References and BIBLIOGRAPHY
Foreign b ooks:
 Adler, R. J. and S. Kess. 2017. Lifetime planning with life insurance. The CPA Journal (December)
 Anderson, S. E., L. C. Jones and T. N. Reed. 2012. Insurance fraud: Losses, liabilities, and September
11. Issues in Accounting Education (November)
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Online sources:
 www.1asig.ro
 www.tribunaconsumatorilor.ro/cate -tipuri -de-asigurari -exista/
 www.1asig.ro/Piata -Asigurar ilor-2.htm
 www.bursaasigurari.ro
 www.portaldeasigurari.ro
 http://reports.mintel.com
 www.cea.assur.org
 www.lloyds.com

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 www.referatele.com
 http://www.bloombiz.ro/article –Finante -Asigurari
 http://www.wall -street.ro/articol/International/23267/Evolutia -pozitiva -din-2006 -a-asigurarilor –
europene -va-continua -si-in-2007/pagina -1.html
 www.cea.assur.org, Annual Report 2005 -2006
 www.1asig.ro, Ce inseamna asigurarile pentru economia europeana?
 http://www.adevarul.ro Articol ,,România are a opta piata de asigurari din Europa'' din 6 noiembrie
2007
 https://www.zf.ro/banci -si-asigurari/peste -823-300-de-romani -au-o-asigurare -casco -a-masinii -pentru –
care-platesc -peste -400-euro-pe-an-16966374

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Appendix
Interview questionnaire

1. Do you have a driving license?
 Yes
 No

2. How old are you?
 Between 18 -24 years old
 Between 25 -30 years old
 Between 31 -35 ye ars old
 Over 36 years old

3. What is your monthly income?
 Under 2000RON
 Between 2000 -2500RON
 Between 2600 -3000RON
 Over 3100RON

4. Do you have CASCO insurance?
 Yes
 No

5. How much are you willing to spend on CASCO insurance per year?
 Under 1500RON
 Between 1500 -3000RON
 Between 3100 -4500RON
 Over 4600RON

6. How satisfied are you with the services provided from this insurance?
 Very unhappy
 Dissatisfied
 Satisfied
 Very satisfied

7. How satisfied are you with the time your car needs to spend in service?
 Very unhappy
 Dissatisf ied
 Satisfied
 Very satisfied

8. How satisfied are you with the duration of creation of the damage file?

67
 Very unhappy
 Dissatisfied
 Satisfied
 Very satisfied

9. How satisfied are you with the time between the announcement of the damage and the consultancy
given b y the insurance company?
 Very unhappy
 Dissatisfied
 Satisfied
 Very satisfied

10. How satisfied are you with the time required to establish the damages?
 Very unhappy
 Dissatisfied
 Satisfied
 Very satisfied

11. How necessary do you consider a roadside assistance?
 Useless
 Unnecessary
 Necessary
 Very necessary

12. How important do you consider assistance against natural disasters?
 Very unimportant
 Unimportant
 Important
 Very important

13. Do you have insurance against the risk of vandalism?
 Yes
 No

14. How important do you consider to be insurance against the risk of vandalism?
 Very unimportant
 Unimportant
 Important
 Very important

15. What do you consider to be the ideal period for repairing a car after an easy, casual accident, without
casualties?
 Less than 2 days
 Between 2 -7 days

68
 Between 8 -15 days
 More than 15 days