The brokerage market in Romania increased by 9.1% in 2020 compared to the previous year, amounting to intermediated premiums worth 7.86 billion lei, while the degree of intermediation reached 68.34%, according to published data of ASF – Financial Supervisory Authority.
In the ranking of brokers, DESTINE Broker, is on the 3rd place.
In 2020, brokerage companies brokered / distributed 68.34% of the total volume of gross premiums written by insurers, for the first time in the last 5 years exceeding the threshold of 80% on the general insurance distribution side.
“Following the centralization of the reports submitted by the brokerage companies, after 2017 – the year in which the RCA law was changed, there is an increasing trend of the degree of intermediation. Thus, the value of intermediated / distributed premiums for general and life insurance increased by 9.1% compared to 2019. This increase is due to both the increase in the volume of intermediated / distributed premiums for the general insurance activity (+ 8.75%) and of the life insurance (+ 19.38%). These values also include intermediation for insurance companies coming to Romania based on the freedom to provide services, the right of establishment, etc. The total value of the intermediated / distributed premiums for them was 565,830,266 lei, representing 7.20% of the total. intermediated / distributed premiums “, it is specified in the ASF report.
In the Romanian market, the revenues of brokerage companies come from intermediation / distribution contracts concluded with insurance and reinsurance companies, being a remuneration model based on the commission received from them.
Read more here