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Business & Economics

THE INSURANCE MARKET IN ROMANIA: A MACROECONOMIC AND A MICROECONOMIC APPROACH
Robert Dankiewicz, Mihaela Simionescu

ABSTRACT. The aim of this paper is to make a quantitative description of the Romanian insurance market after 2000 based on two economic approaches: a macroeconomic approach and a microeconomic one for the period 2002-2017. The macroeconomic perspective supposes the employment of linear models (linear Bayesian models) and non-linear models (non-parametric models). The microeconomic approach uses indicators for ten Romanian insurance companies in the framework of dynamic panel data models and mixed-effects models. Under the hypothesis of the linear relationship between variables, insurance density explains the indemnities better compared to gross written premiums income.
 A tendency of increase in the indemnities from one year to another is confirmed by the dynamic panel model, but the crisis, included in the model of mixed-effects, determined the growth in indemnities more compared to the increase in gross written premiums.

KEYWORDS:  insurance, gross written premiums, Bayesian model, dynamic panel model, mixed-effects model, non-parametric models.

JEL classification:  C51, C53, G22.