Loading ...About one thousand euros per customer is the incumbent value of the future receipts in the Romanian Pillar II, calculated by Insurance company Aviva in the half-year report, on August 6.
Implemented at the level of the entire industry, the indicator shows how much contributed the Romanian pension fund to the insurance volume in terms of the long-run effect and place the sum to much more than 4 billion euros. However, the ability to transform, the assets administered in revenues depends by the level of commissions, the financial reliability of participants and the obtained yields.
Implemented at the level of the entire industry, the indicator shows how much contributed the Romanian pension fund to the insurance volume in terms of the long-run effect and place the sum to much more than 4 billion euros. However, the ability to transform, the assets administered in revenues depends by the level of commissions, the financial reliability of participants and the obtained yields.
Therefore, as market value, the portfolios have a value several times smaller. The sale bids made immediately after the end of the accession campaign by small players of the market, ranging between 150 and 200 euros per participant, point to an overall level of the market worth 600-800 million euros, a figure which slightly exceeds the total value of initial investments, assessed at 500 million euros.
According to representatives of the Commission for the Surveillance of the Private Pension System (CSSPP), the system is let to settle down and to run in in the first two years. The first conclusions of the market were below expectations. Besides low yields, administrators discovered that average salaries of participants are below the national average and the share of empty accounts exceeds forecasts.
The average contribution was of 8.31 euros with a maximum of 10.35 euros at BRD. The 14 administrators of the market will reach, after the receiving of the contributions of May, to amass 289.9 million lei (over 81 million euros). The number of participants for which contributions were cashed was of 3.27 million, of the over 4.16 million customers registered, following the 881,000 empty accounts.
Analysts observe a better quality of portfolios, in the case of funds related to financial-banking groups, whereas at the opposite side, the weakest portfolios have those companies that preferred to sell mainly through brokers.
Analysts observe a better quality of portfolios, in the case of funds related to financial-banking groups, whereas at the opposite side, the weakest portfolios have those companies that preferred to sell mainly through brokers.
Beside the direct effect – higher receipts – the good sales strategies have collateral effect on Pillar III. Therefore, pension funds which have already high-revenue customers and well-trained workforce used the advantages to enter the market of facultative pensions or have enough arguments to do it in the upcoming period.
The estimates made by the surveillance authorities and the players present on the local market show that by year-end the overall number of participants might reach at least 200,000. The number will depends, however, on the evolution of the deduction threshold, which at present is of 200 euros a year, for employee and employer alike. At the level of 200 euros, total receipts might stand at minimum 40 million euros, starting next year.
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