ISSN: 2225-8329
Open access
This paper had the objective of investigating the profitability of the Top 10 biggest Romanian Insurers based on the official audited data available at 01.06.2012 at the Insurance Supervisory Commission - the years 2001-2010. The financial indicator used for our inquiry was the commercial profitability rate. The method used was the mathematical regression, linear and polynomial, fitted with the least squares method. For each insurer a linear and a polynomial model were calculated, resulting 20 models. A linear and a polynomial model were calculated as well, for the average commercial profitability rate for top 10 Romanian Insurers. The predictions obtained were compared with the average Top 10 commercial rentability rate evolution and the closest model was Generali Asigurari polynomial which is in concordance with the increasing trend in the market. The main causes of negative pressure on the profitability in the context of the financial crisis and insurer’s response to them were discussed. In conclusion, Generali business model which was focused on a watchful qualitative selection of the risks and an adequate calibration of the underwriting process can be a good alternative to follow for the Romanian insurance companies, considering that Solvency II will come in force starting with 01.01.2013.
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In-Text Citation: (Giosan, 2012)
To Cite this Article: Giosan, R. N. (2012). Study Regarding the Profitability of Top 10 Romanian Insurance Companies. International Journal of Academic Research in Business and Social Sciences, 2(2), 190–203.
Copyright: © 2021 The Author(s)
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