Romania, a key-market for VIG

Romania is a key-market for VIG, the Austrian group taking the commitment to be a long-term investor on the local insurance market, the VIENNA Insurance Group representatives stated on Monday, December 4th, during a press conference.

According to them, VIG wants to grow, in Romania, both organic and through acquisitions, but, currently, there are no negotiations. Also, the group analyses the opportunity of becoming a shareholder of PAID - The Romanian Pool Against Natural Disasters.

"It's necessary to improve the level of financial education, in order to ensure the market development. Insurance is perceived as a cost, not as an investment for protecting the insured ones in case of unexpected events. The motor segment could be reduced through tax deductibility for life insurance, to support the increasing importance of risk protection", stated Elisabeth STADLER, CEO and President of VIENNA Insurance Group's Board of Directors.

She also added that is important to have a functional and sustainable MTPL market.

In Romania, VIG owns the insurance companies ASIROM, OMNIASIG and BCR Life Insurance and, in the first half of 2017, had a cumulative market share of 23,4%. In fact, OMNIASIG had a 10,2% market share, ASIROM - 9,3% and BCR Life - 3,9%.

In the first nine months of 2017, the value of GWP (gross written premiums) by VIG in Romania decreased by 4,7%, to EUR 373,4 million, while the gross profit (before tax) was EUR 8,9 million - a 39% growth compared to last year's same period (EUR 6,4 million).

Currently, VIENNA Insurance Group is implementing the "2020 Agenda" management program, which focuses on optimizing the business model, frame and cooperation, and, also, ensuring future viability. "On this line, our main concerns are the changes in lifestyle and the impact of economic and demographic changes on insurance: digitization, assistance, enhancement of business lines (health, bancassurance, reinsurance) and the insurance of the future", explained Judit HAVASI, member of VIENNA Insurance Group's Board of Directors.

Within this program, VIG has set up a new assistance service company in Romania, as a part of the group's policy of holding its own assistance companies in the countries where the group is present on the insurance market.

According to Judit HAVASI's statements, VIG aims on extending the assistance services in order to complete with added-value the basic hedging services. For the next year, the group wants to expand the assistance service in ECE countries.

Speaking of digitization, "the Y generation will soon represent 50% of our customers", stated Judit HAVASI, explaining that they have a high preference for the online environment.

In terms of ensuring viability in the future, VIG wants to step up its activities in Romania, on the following segments:

1. Assistance

A new VIG company, "Global Assistance Service SRL", was set up in Romania. The company is in the initial phase of development (technical implementation) until T3 2018.

2. Digitization and innovation

- OMNIASIG: the new sales portal is operational since June 2017, the OMNISana e-learning platform will support sales.
- ASIROM: the implementation of a new IT system for insurances - will ensure a more efficient and transparent operational flow.

3. Health insurances

- ASIROM: market development and communication plan in order to increase public interest for health insurances.
- OMNIASIG: developing a dedicated sales and subscription team on health insurances, optimizing the product portfolio.
- BCR: the use of tax deductibility as a main pillar for supporting health insurances sales, adapting the product portfolio.

4. Expanding the bancassurance business

- BCR: digital consulting project - digital transformation to support and simplify sales and operational processes together with BCR.
- OMNIASIG: e-GO (car-sharing program) - conducted together with BCR/BCR Leasing.



Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

COLONNADE Insurance to start operations in Romania

COLONNADE Insurance, part of the Canadian group FAIRFAX Financial Holdings, officially begins its activity in Romania, following AIG's entry into a strategic partnership with COLONNADE Insurance to manage existing policies for AIG Europe Limited's Romanian Branch.

2018-01-18

ON THE MOVE

TOP EVENT

LIVE: IIS Global Insurance Forum 2018 / Day2

The works of the Global Insurance Forum continued today in Berlin, Germany. Providing security for ageing populations in health care and pensions terms, as well as innovation and InsurTech or innovative strategies for the future development of the industry are on the today's agenda.

10.07.2018

See all