Redefining Market Opportunity!
The local market was riding high by the end of early 2000s enthusiastic by the double-digit increases. A higher number of inhabitants, low insurance density together with EU accession opportunity made from Romania a kind of El Dorado of any insuarance investor.
At first there were rumors. Most times, the rumors were confirmed by real actions. Though, one rumor has not been confirmed. Whenever the story was about AXA Group entering the local market the rumors remained just rumors.
Anyhow, 2010 brought us a surprise and AXA was finally here. Never mind that only through a company specialized in life insurance. There was another reason in order to „reconfirm” the huge potential of the local market.
If the greatest insurance group in the world came to Romania it means our market is still on the good road of opportunity. Those kind of words were common thoughts immediatly after AXA reached our market. The company aimed to redefine the local standards instead it succceeded in redefining he market potential in about 4 years.
Beyond the recent exist of AXA what really matters is that no other foreign investor did not want to overtake AXA’s portfolio in Romania…
And how could be otherwise in a market which holds MTPL as main insurance class, QBE withdraws himself from Romania and the most important foreign investor gave diplomacy aside and clearly confirms that the main issue of the market… is not unfair… but irrational competition!
Let’s forget about the local market potential for a rational approach of the market issues.