Key 2017 trend: liability insurance for IT developers and consultants
There are over 14,000 IT development & consultancy companies in Romania, which collectively generate a turnover in excess of EUR 4 billion and employ more than 75,000 professionals in Romania.
"Less than an estimated 10% of these 14.000 IT companies have any type of professional liability insurance, which is however a standard requirement from potential foreign clients. If they want to expand internationally and compete for more substantial and more profitable projects, Romanian IT companies will simply have to be prepared and accurately insured", says James GRINDLEY, CEO and President of the Board of CertAsig.
Increasingly, IT consultants are more exposed to the legal consequences of dissatisfied clients. In the case of system failures, data loss, or IT security issues and their consequences, IT developers are liable to pay significant compensation to unhappy clients, not to mention loss of revenue.
Specialised insurance products for IT companies cover many potential risks, such as accidental negligence leading to financial damage to the consultant's client, costs of potential compensation payable to clients (in the event of negligent activity or advice), reimbursement of client fees if clients refuses to settle outstanding fees, legal defence costs etc. The insurance cover can even be extended to legal agents or sub-contractors of the insured IT consultant.
2017 trend: Wind parks insurance
Wind parks are a growing industry in Romania, representing now approximately 6% of the total energy production in Romania (according to centralised Transelectrica data). Wind parks are exposed to many types of physical risks, already well covered by specialised property & engineering insurance products.
In addition, CertAsig announces the launching of a new insurance product for wind farms, covering Wind Resource Volatility.
CertAsig is one of the few insurers in Romania to offer cover for wind farm companies from the potential loss of income in case of adverse wind conditions (high and low).
"As renewable energy continues to grow, so too does the financial risk posed by the inherent volatility of the resources that make it possible. Our new product, developed in partnership with one of the world most renowned reinsurance companies, Swiss Re, enables operators and investors in wind parks to receive steady revenue from their wind farms. Therefore, they are able to concentrate on growing their business without worrying about adverse weather effects".
2017 question mark: forestry and standing timber insurance
One of the more controversial industries in Romania, forest and standing timber exploitation, is still a question mark in terms of these companies' demand and acquisition of insurance cover.
"We have noticed a significant increase in interest from owners or companies active in forestry and standing timber exploitation, but insurance penetration of forestry insurance remains surprisingly low. For these companies, CertAsig provides core cover for fire, lightning, explosions and impact of aircraft. Additional risks which we can cover include adverse weather (wind, cyclone, hail, frost, snow and ice), landslides and floods, fire-fighting expenses etc.", adds James GRINDLEY.
"On the corporate insurance market, we see 2017 as a year of increased maturity for companies, in terms of fully understanding what insurance can do for their businesses: aside from providing protection from various risks, specialised insurance products can also enable companies to be more competitive and to meet standards when trying to gain more clients. In addition to this, CertAsig's specialised insurance products can help companies improve their revenue stability and overall financial results", adds James GRINDLEY, CertAsig's CEO.
CertAsig's strategy is to exclusively target companies, for which it develops insurance products specialised for their specific industries, via insurance brokers in Romania, Bulgaria and Turkey. Over 5.000 companies insure their factories, buildings, equipment, merchandise, employees, contracts or ongoing business with CertAsig. More than 95% of insured companies chose CertAsig's products through insurance brokers.
CertAsig is a Romanian insurance company, whose majority shareholder is Royalton Capital Investors II, a private equity investment fund based in Luxemburg, active in Romania, Poland, Slovakia, Turkey, Solvenia, Lithuania and the Czech Republic. The main investors of Royalton Capital Investors II include Alpha Associates, the European Bank for Reconstruction and Development (EBRD) and the European Investment Fund (EIF).