How is the current crisis affecting Triglav? The insurance business is very specific, are you more or less affected by the current situation than the average insurer?
Even in tight financial conditions and the economic downturn, insurance is an attractive business. Nevertheless, good business performance is an ambitious task, difficult to attain without commitment, deep analyses and strategic considerations in decision making. In 2010, Triglav started redefining its strategy by shifting the focus from market share to boosting returns in the period 2011-2015. Despite demanding market conditions, this has proved to be a good decision. During the next period these demanding conditions will primarily take the form of turbulence and gradual recovery of the economies in South East Europe (SEE).
From the beginning of the recession until now, the insurance sector has fared better than most other industries because some insurance products are absolutely necessary - car insurance as a precondition for car registration or home insurance traditionally sought by almost everybody, etc. In spite of that, the crisis has primarily reduced the number of insurance policies which are combined with a savings component, such as unit-linked life and pension insurance. This is logical as the crisis has brought about lower purchasing power and real income reduction. It is obvious that household, corporate and general government debt should go down and that strong players are seeking to increase their market share in SEE. Nevertheless, in spite of the recession, our strategy for the future remains unchanged. Triglav is not interested in mere growth in market share but moreso in profit. Our recipe is simple: in this time of crisis, the volume of operations in financial terms and expenses have to be decreased, development momentum has to be maintained and enough capital accumulated to restart growth in the future.
What are your advantages in comparison to the competition? Why should someone be insured by Triglav and not by another company?
Changes in capital markets together with substantial damage due to adverse weather events only increase the need for security. Insurance remains an irreplaceable mechanism for providing different elements of security to individuals within society. Clients trust that it is Zavarovalnica Triglav who will best secure their property, health, life and investments is being upheld every day, particularly in times of dire straits. A good insurance company shows its value in times of trouble. Triglav is exceedingly good at quick and effective claim settlement and primarily draws strength from its network of insurance agents and quality after-sales activities. Our mission is to build a safer future, whilst committed to high professional standards, security and corporate social responsibility, which helps us remain the largest Slovene insurer. The Triglav Group is one of the leading insurance/financial groups in SEE, present in as many as seven European countries and eight markets. In terms of operating results, Triglav is the best performing financial institution in Slovenia, meeting set targets.
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SLOVENIA: Interview with Matjaz Rakovec, Triglav Group