How do we make the economy grow? By encouraging
The beginning of spring brings, this year, the optimism of analysts,
who point out more and more signals for economic revival in Romania.
Increasingly optimistic forecasts are making their way on the first
page of specialty publications, awaiting estimates of the National
Statistics Institute, to officially announce the end of the recession.
Economic development will lead, in 8-10 months, to an increase of
the insurance companies business, analysts say. Thus, the positive
evolutions of industry, exports, real estate and credits will also
be reflected upon the insurance market.
However, most recent studies show this relation could also run backwards.
Thus, an increase of 1% of insurance underwriting will result in
an increase of 0.5% of GDP.
So, we should not wait for a chain reaction to return to insurance
growth, as we can start from this side to stimulate all the economic
cycle. In this sense, the state can take proactive measures to stimulate
the insurance market, to make the concept of protection more popular,
in all citizens’ interest.
And studies show that the effects on the overall economy will soon
What are the main challenges that the insurance brokerage market
has to face in 2011? How did the perception of clients regarding
the insurance consultant's role change in the last year?
For 2011, we have set the objective of a minimum 10% increase
in income. On the retail segment, we plan to diversify our
products and to re-launch the site www.asigur.com, and regarding
the corporate segment, we will focus on developing niche areas
and on consultancy services.
Managing Partner, ASIGEST
Antonio SOUVANNASOUCK: Unfortunately, the deep economic crisis
in Romania led to minimizing the role of the insurance consultant
and turned him into a simple... cheap seller! Very few are still
looking at the quality of services, all the insured are now seeking
one thing: to pay as less as possible for insurance, regardless of
the quality of the product or of related services, such as those
of a consultant. Unfortunately, this does not mean less work for
the consultant, because his work is the same, established both by
the legal regulations, and by the market, because no customer, corporate
or retail, requires the cheapest product from the beginning. So,
after a deep comparative analysis of insurance products, the customer
chooses, during this period, to buy minimal insurance and at the
lowest price. Simultaneously, the poverty of the population leads
to an explosive evolution of the number of brokers, many of those
affected by the financial crisis having to supplement their incomes
by also working in insurance, even if the average income per broker
is declining dramatically.
international insurance brokerage market reunited with the occasion
of the International Insurance Mediation Conference
The first edition of the International Insurance Mediation Conference,
organized by Media XPRIMM and Istanbul Underwriting Center, took
place on March 28th-29th of 2011 in Istanbul. The event is the perfect
context for worldwide insurance leaders and specialists to meet and
debate on the most important issues in their field of activity.
CIUREL: Insurers have registered capital increases of EUR 160 billion
Insurance companies have learned some lessons from the financial
crisis that began in 2008. Thus, "it is extremely important to rethink
the strategies of insurance companies, in terms of granting special
attention to indicators of liquidity and to solvency margins", is
one conclusion of the presentation held with the occasion of IIMC
2011 by Violeta CIUREL, President of AXA Life Insurance Romania,
the moderator of the first part of the conference.
Also, an important role should be occupied by maintaining the portfolio
and by granting special attention to communication with clients.
UKAROGLU: Trainings and conferences add a lot of strength to the
"We value XPRIMM and the whole team and I sincerely believe that such an effort
to organize conferences and trainings and such media work are adding a lot to
the strength of the market", said Menekse UKAROGLU, General Manager, Istanbul
Underwriting Center in an interview for XPRIMM TV, regarding the IIMC - the International
Insurance Mediation Conference, held on March 28th - 29th, 2011, in Turkey. The
first edition of the event was co-organized by Media XPRIMM and Istanbul Underwriting
Center, who brought a great valuable support.
1% increase in the insurance industry leads to a 0.5% increase of
Economy and insurance industry are in a relationship of mutual influence,
bidirectional, a negative or positive evolution of one of them having
an effect upon the other. This is one conclusion of the presentation
of Prof. Fuat ERDAL, Director, The Insurance Training Center, held
during IIMC - The International Insurance Mediation Conference, that
took place on the 28th and on the 29th of March, in Istanbul.
have survived the crisis and have adapted to current market conditions
by focusing on retail and on non-motor lines
"In 2010, the brokerage market
maintained at the 2009 level, of EUR 758 million, as the negative
effects of the financial crisis where
mostly felt by insurance
companies", said Bogdan ANDRIESCU, President of UNSICAR, during the IIMC 2011
conference, in Istanbul. However, "despite prolonged unfavorable economic conditions
and decreasing business registered by a significant number of players in the
insurance market, the degree of coverage of the brokerage market in total underwritings
reached 38%, which is superior to that recorded before the crisis, of 30%, in
2008", emphasized the President of the professional association of insurance
brokers in Romania.
presented, during IIMC 2011, the strategy of collaboration with Turkish
brokers on the marine insurance line
CERTASIG participated, as Main Partner, in the first edition of the
International Insurance Mediation Conference, that took place on
the 28th-29th of March, 2011, in Istanbul. During the event, James
GRINDLEY, CEO of CERTASIG, presented the company's strategy regarding
the collaboration with insurance brokers in Turkey, with particular
focus on marine insurance line.
2 aims to create a unique market and an equitable business environment
for insurance brokers
The amendment of the Insurance Mediation Directive (IMD1), operation
launched in the summer of 2010 at European Union level, aims to create
a unique market for insurance brokers and an equitable business environment
for insurance distribution, in a better integrated market, with an
optimal level of consumer's protection. This was the main topic discussed
at the IIMC - International Insurance Mediation Conference on March
28-29 in Istanbul.
All aspects that resulted from the experience of IMD1 implementation
have been the object of a consultation launched in January 2010 by
the European Commission.
McATEER: Robust regulation of brokers business will work in favor
of both customers and the insurance industry
"Changing social, economic and
financial environment in EU represents great challenges and opportunities
for insurers - if 'fit for purpose'.
serial insurance market failures in many countries highlighted that a new, coherent
and consistent approach to regulation is needed, a regulation that delivers real
benefits for consumers, industry and society", said Mick McATEER, Director, The
Financial Inclusion Centre and President, European Commission Financial Services
User Group, during the first edition of the International Insurance Mediation
Demand for life insurance products is increasing
Once the financial crisis ended, the demand for life insurance products
increased in 2010, compared to 2009, showed Jetse Frederik de VRIES,
CEO, ING Emeklilik, during IIMC 2011 Conference, that took place
in Istanbul, on the 28th and on the 29th of March, 2011. At the same
time, compared to 2001, the gross written premiums on life insurance
segment had an exponential growth in Turkey, from USD 375 million
in 2001 to USD 1,447 million in 2010.
In terms of distribution channels for life insurance policies, under
the circumstances of extended banking networks, bancassurance holds
70% of total sales, followed by direct sales, with 11% - this form
of commercializing being supported by sales teams specialized on
corporate clients, by call centers and by online marketing.
hosted ORACLE Insurance Day on 7th of April
On the 7th of April, the second day of the event ORACLE Financial
Services Days, called ORACLE Insurance Day, took place. Important
leaders and specialists from the insurance market came to the Romanian
Banking Institute to learn more about how ORACLE solutions can help
them in business management.
Market Awards Gala in 300 photos
The photo gallery made after the Insurance Market Awards Gala, granted
by PRIMM - Insurance & Pensions Magazine, is available for viewing here!
Also, an extensive selection of photos taken at the event is posted
on www.primm.ro and www.facebook.com/primm.ro.
The best Romanian insurance companies and their local networks were
granted awards during a ceremony held Monday, March the 21st, at
ALEXANDRESCU, the new President of LIMRA Romania
Theodor ALEXANDRESCU, General Manager of ALICO Asigurari, was appointed
President of the Romanian Board of LIMRA, for a two years mandate,
starting immediately. The Presidency of the Romanian Board of LIMRA
also involves the quality of Member in the European Executive Board.
LIMRA, LL Global affiliate member, is an association of life insurance
and financial services companies with approximately 850 members,
in over 73 countries worldwide. The association's objective is to
offer the most recent information about the industry and recommendations
to meet the needs of the financial industry.
Re strengthens CEE practice with WILLIS Re's Guy HUDSON and Russel
JLT Reinsurance Brokers Limited (JLT Re) has expanded its existing
capabilities in Central and Eastern Europe through the appointments
of Guy HUDSON as Partner and Russell HENWOOD as Associate. JLT has
taken the two Central and Eastern European reinsurance specialists
from rival WILLIS's reinsurance division.
Guy HUDSON's experience in the industry stretches back over twenty
years. His previous appointments include JAUCH & HUEBNER where
he held the position of Director, followed by HEATH Lambert and later
WILLIS where he was Executive Director, responsible for producing
and placing reinsurance programmes on behalf of Central and Eastern
European insurers. Guy is a Fellow of the Chartered Insurance Institute.
Economic Growth a Major Factor for Increased Losses; the tendency
is maintaining in Romania as well, where insurance penetration is
still very low
A study made by experts on natural catastrophe risk at ALLIANZ points
out that the "average annual cost of insured claims from natural
catastrophes has increased eight-fold since 1970 (up from some USD
5 billion in the 1970s and 1980s to over USD 40 billion in 2010)." The
main reason for the steep increase hasn't been the nature of the
catastrophes. It's been caused by economic growth. Specifically: "property
values are rising, population density and insurance penetration are
increasing, often in high risk areas - a trend that is compounded
by the fast growth of some Asian economies in catastrophe-prone regions," ALLIANZ
explained. "Most of such tendencies have manifested in Romania as
well, in the last 20 years", stated Rangam BIR, CEO ALLIANZ-TIRIAC.
shareholders have brought EUR 107 million to the capital of Romanian
insurers in 2010, compared to EUR 384 million in 2009
Romanian insurers' shareholders have made capital increases of EUR
107.5 million in 2010, 72% less compared to the capitalizations of
EUR 384 million made in 2009, according to data published by the
National Trade Register Office (ONRC).
insurance brokerage market: growth sustained by mandatory
General insurance accounted for over 95% of the total brokerage
market - according to estimates, EUR 759 million. The best
represented insurance class was motor insurance, as Motor Hull
and MTPL policies generated, cumulated, EUR 631 million (equivalent
to 79% of the total market). The rest of the brokerage market
portfolio was completed by property insurance (10%), respectively
by GTPL policies - 2.5%.
of leader on the life insurance brokerage market
EUR 41 million was the value of the mediated premiums on the
life insurance segment in 2010, registering an increase in
absolute value of around EUR 18 million. Also, the share in
the total market, according to estimates, has increased from
3 percent in 2009 to over 5% at the end of 2010. Compared with
2009, the hierarchy of the brokerage companies has known changes,
as KUNDEN Broker became the market leader, with a 16% share
and a 42% business increase.
of EUR 28.5 million for VIG in Romania
VIENNA Insurance Group registered, in Romania, in 2010, a profit
(before taxes) of EUR 28.5 million. This value represents an
increase of 17.9% compared with 2009 results.
Asigurari increased by 8% on the life segment in 2010
GENERALI Asigurari registered in 2010 underwritings worth EUR
91 million on the life insurance segment, up by 8% compared
to 2009, due to a 19% evolution of the unit-linked segment.
insurers have underwriten RON 78 million outside the country
RON 78 million represents the total gross premiums underwriten
in 2010 by Romanian companies outside the country. The figure
represents about 0.9% of the total insurance market and was
made by three insurance companies: CITY Insurance (RON 55 million),
ASITO KAPITAL (RON 22.6 million) and CREDIT EUROPE Asigurari
(RON 0.5 million).
increase for life insurance in 2011
The companies activating on the life insurance segment have
registered, in 2010, a 3% increase of business, up to over
EUR 388 million. One of the main ways through which this increase
has been obtained is represented by the focus on retention
mechanisms, according to Ovidiu RACOVEANU, Life Insurance Manager,
Insurance is making its exit from the Russian insurance
VIENNA Insurance Group (VIG) is selling its stake in the Russian
group KAPITAL Insurance Group, composed by MSK Insurance, MSK
Life and SOVITA, thus making its exit from the Russian insurance
87% of claims paid on Motor Hull were the result of road
Traffic accidents and vehicles hit in the parking lot were
the causes for 53.3%, respectively 34% of the total claims
paid by Bulgarian insurers the previous year, on the Motor
Hull insurance line, according to data published by the Financial
increase for the Kazakhstan insurers in the first two months
EUR 155 million was the total registered by the insurance market
in Kazakhstan, during January-February of the current year,
4% higher than in the similar period of 2010. At the same time,
the paid claims of the insurers rose to EUR 25.68 million (+39.5%),
according to data published by the Financial Supervisory Commission.
insurance market grew by 2% in the first two months of
According to the preliminary data published by the Insurance
Bureau in Croatia, in the first two months of the current year
the insurance market recorded a gross written premium's volume
of KN 1.66 billion (about EUR 225.06 million), 2.1% higher
than in the same period of last year.
turnover up in February against January, INS reveals
The turnover of the retail trade sector - except for the
sales of road vehicles and motorcycles - in February increased
by up to 5.4 pc against January, but dropped by as much as
5.2 pc vs. the same month of 2010, according to data provided
by the National Statistics Institute (INS).
prices up 10.9 pc in february
Industrial production prices for total (local and foreign)
markets picked up 10.9 pc in February against the same month
of 2010, according to data provided by the National Statistics
Institute (INS). Per activity sector, prices went up in the
processing industry (+12.9 pc), the mining industry (+8.6 pc),
the supply of water, electricity, thermal energy, gas, hot
water and air conditioned (+1.4 pc).
market has a high growth potential as cards penetration
Considering the international economic and financial context,
2009 and 2010 were marked by a moderation of the banking activity
in Romania, as reflected by the evolution of total banking
assets, reveals ENSIGHT report remitted to Nine O'Clock. Non-government
loans' (households and non-bank companies) high growth pace
until 2008 was replaced by a contraction in 2009 and 2010,
in real terms.
10,000 homes available at tIMOn, between April 14th and
Over 10,000 homes, old and new, will be on sale in the tIMOn
real-estate fair, to take place between April 14th and April
17th, in the Constitution Square, the organizers announced,
in a press release, quoted by Mediafax. Over 100 companies,
namely 50 real-estate brokers, confirmed their participation
in the fair, on a surface of 2,000 square metres.
COSTACHE CEO: Adriana
Business Development Director: Alexandru
Editor in Chief: Mihaela
Scientific Advisor: Daniela
International Column Coordinator: Andreea
Senior Editors: Vlad
PANCIU, Oleg DORONCEANU
BOLDIJAR, Oana RADU, Mihai CRACEA, Andreea STATE
Junior Editor: Dora
ALECU, Olesea SERGHIESCU
Accounts Manager: Georgiana
IT Department: Octavian
GRIGOR, Dorin PALADE, Cosmin ARMASESCU
PUBLISHED BY: Media
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Copyright©2011 Media XPRIMM
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|Special Report CEE,
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April 14th-15th, 2011
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April 14th-17th, 2011
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May 17th-18th, 2011
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May 23rd-26th 2011
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|3rd CEA International Insurance Conference - "Insurance
reform: opportunity or threat?"
June 16th, 2011
Divani Apollon Palace & Spa, Vouliagmeni, Athens, Greece
Organizer: CEA - Comite Europeen des Assurances
For details: conference.cea.eu