Romania's insurance market grows 15% in the first half of 2026

The insurance market in Romania has experienced significant growth, with a remarkable increase of 15% in the first half of 2026 compared to the same period last year. This growth has brought the total volume of underwriting activity to approximately 14.2 billion lei.

According to data from the Financial Supervisory Authority (ASF), around 78% of the total underwriting volume comprised premiums related to general insurance. Authorized companies reported a 13% increase in gross written premiums, while branches saw an impressive advance of 31% compared to the first half of 2025.

Notably, premiums for RCA policies reached about 6 billion lei, marking a 17% rise over the first six months of the previous year. The average RCA premium for passenger vehicles was 2,093 lei in the second quarter of 2026, which is a 7% increase from the first quarter and up approximately 21% compared to the same period last year. This increase is primarily driven by current market conditions, particularly the dynamics of damage costs and operational expenses.

For freight transport vehicles, the average RCA premium was 4,698 lei in the second quarter of 2026. This figure reflects a slight decrease of about 2% from the previous quarter but is still around 6% higher than in the second quarter of 2025.

The average RCA damage amount rose by approximately 18% in the first half of 2026 compared to the same period last year. Despite this, the number of damage claims decreased slightly, by less than 1%. The average paid RCA damage for material damages increased by 14%, contributing to a total volume of gross indemnities paid that reached about 6.7 billion lei, a 16% increase from the first half of 2025.

Of the total indemnities paid, 82% were related to general insurance, while 18% corresponded to life insurance. By the end of the first half of 2026, the technical reserves constituted were approximately 30 billion lei, reflecting a 24% increase from the same period last year. This growth included a 24% rise in reserves for general insurance and a 25% increase for life insurance.

At this point, 60% of total technical reserves were allocated to general insurance and 40% to life insurance. The total volume of underwriting includes both the activity of companies authorized by ASF and that of branches operating in Romania. As of June 30, 2026, there were 24 insurance companies authorized by ASF and 15 branches operating locally under the right of establishment.

The liquidity indicator for general insurance stood at 2.83, while for life insurance, it was 3.5. The combined loss ratio for all classes of general insurance was approximately 93.4% in the first half of 2026, an increase of 3.5 percentage points compared to the same period in 2025. For insurers underwriting RCA, the combined loss ratio exceeded 100% in the first six months of 2026.

The premiums distributed by brokers amounted to 9.7 billion lei in the first half of 2026, which is approximately 16% above the level of the same period in 2025. The intermediation rate was 84% for general insurance and 13% for life insurance, highlighting the growing role of brokers in the Romanian insurance landscape.