|
|
|
| Powered by Media XPRIMM | |
| MENU: EDITORIAL | INTERVIEW | TOP PRESS | CEE & CIS | FINANCIAL NEWS | EVENTS | |
| |
|
| EDITORIAL |
|
The Romanian economy is quaking... The GDP growing rate is surpassing the European average. The EUR and USD are losing battles with the national currency. These are some of the headlines that described, in the last year, the economic realities of our country. But in 2008, on the grounds of the USA recession and the European stagnation, the optimism seems to leave the financial analysts and not only them, while the news are becoming more and more pessimistic, sometimes even alarming. Thus, from the beginning of the year, the Stock market is collapsing, the national currency is rapidly devalued, and the inflation is rising to increased levels, while the real-estate market is on the edge. Will these tendencies affect the Romanian insurance market? The answer is NO... and the trumps are revealing from the emerging market statute of the insurance in our countries... In this way, despite the Romanian National Bank warnings, the Romanians' indebted degree is still quite low, compared with the European average. In the same time, the amounts of money that have to be paid are still at a low value, while the growing rhythm of the arrears is not alarming. This is why, even in the case of a stronger devaluation of the RON, we can conclude that the claims ratio on this line of business (credit and warranties insurance) will not grow with higher rates than now. We consider, in the same time, that the economic context also offers development opportunities, at least in what concerns the unit-linked insurance. This mainly because an economic principle says that when the stock market is going down, you should buy. Therefore, the insurers may record sales increase on this line of business... We express our belief that the Romanian insurance market has the maturity to face successfully the world economic crises and to still register a healthy growth, especially taking into account the competition for supremacy. by mihaela.circu@mxp.ro |
  
 |
 
|
|
|
| INTERVIEW |
|
Interview
with Mr. Boris SCHNEIDER, Boris SCHNEIDER: The VIENNA Insurance Group has a vast experience in operating by a multi-brand strategy. We believe there is still enough room on the Romanian insurance market for all VIG member companies. Also, competition can only lead to excellent results; thus, given that we have a very good communication across the group, we can even learn from our "sisters". For instance, OMNIASIG has some very good parts to it, and the same applies to ASIROM, so we can only learn from each other. In the end, may the best one win! Looking from a different perspective, we must admit that we discuss about totally different companies, with different market approaches. As a group, however, we build synergies that can be achieved in departments like back-office, IT etc. But these are plans on very long term, which means that, for the time being, there won't be any major changes. XPRIMM: Is there any initiative of collaboration between VIG member companies in Romania, such as setting common policies and strategies for market approach? B. S.: We don't discuss about our commercial strategies; as I said, the competition is free. But if one of the VIG companies in Romania sells a product at half the price of another group company that provides a similar product - I imagine that someone, in Vienna, will start asking questions and investigate the case. XPRIMM: What do you think is the main threat for the Romanian insurance market? B. S.: The price should no longer be the main criterion that differentiates between insurance companies in Romania. I believe this is the only thing we need to make sure it happens on the market as a whole. In fact, this was a stupid mistake we made the previous years and even last year, on the motor third party liability insurance market, when at least one company sold MTPL policies almost for free. This company, just like the other ones adopting this strategy, only managed to achieve a planned loss. In case ASIROM would start selling MTPL at extremely low prices, no one would be left on the market but us, because we have the strongest sales network. When the Romanian insurance market convenes on official occasions, discussing the problems of the relevant market, everybody agrees that franchise on Motor Hull must be introduced and that MTPL prices are still low. Immediately after these meetings we can see the same companies displaying a behavior that is totally the opposite of what they defended in the official statements made during those meetings. And prices do anything but increase, although the increase would only be normal and healthy for the market. Moreover, the market is really faced with a problem related to claim rate, especially on the motor segment. At ASIROM we have taken many measures in this respect, the most important one being the introduction, beginning with November last year, of a mandatory franchise for Motor Hull policies. We planned to maintain the portfolio of ASIROM traditional clients and avoid those clients who, every year, shift from an insurer to another. Eventually, Motor Hull doesn't have to pay for damage amounting to EUR 100 or less... the fixed costs are already too high. Nevertheless, I do hope it won't be long until the Romanian insurance market is truly strengthened. I am fully confident that better times are yet to come. Clients will understand that they shall get only best quality services, as they pay for it. Things cannot change in just one year, but I am sure we are on the right track. XPRIMM: What objectives did ASIROM set for this year and what has been achieved so far in this respect? B. S.: We've already introduced a dual management system, which shall be put in place through a Supervisory Board and a Board of Directors. The decision was already made at the General Shareholders Assembly, organized at the end of February. All VIG companies implemented this system and it works, based on this solution. Practically, the main advantage is that the company management becomes 100% responsible for development - thus making ASIROM more flexible for the client. Moreover, at the beginning of May, we shall start a major rebranding process to mark the affiliation to the Austrian VIENNA Insurance group. Also, we plan to improve the positioning of ASIROM as retail insurer. We also intend to expand the brand's awareness to the small and medium-sized enterprises, which actually represent one of our main targets for 2008. The total investments shall be considerable, and they are still to be budgeted. XPRIMM: What is the strategy of ASIROM this year, market share or profits? B. S.: We are not interested in reaching a significantly higher market share. It would only help if we wanted to impress some financial analysts, but the clients are not at all interested in our market share; the shareholders either, they want profit. For us, the main objective for 2008 is gaining profit, especially since 2007 was a difficult year because of the increasing claim rates we had. At the same time, we intend to complete the ASIROM restructuring process in 2008 and reach a modest increase in the company's underwriting, similar to last year, of about 6-7%. Another measure concerns the savings at administrative level, in a context where, last year, we had a major increase in costs for workforce remuneration, due to the fact that we offered the employees numerous seniority bonuses. When added to the losses caused by flooding throughout the country, our profitability was clearly affected, hence the need for a capital increase. The investments for the company's development will, obviously, continue, as in October-November this year we' shall implement the new IT solution - SAP. XPRIMM: Why was this capital increase necessary? B. S.: In my opinion, ASIROM experienced some difficult times with the restructuring, shifting from the old organization system to the VIENNA Insurance group, while maintaining the market share, which was one of the aspects of the strategy adopted at the time. We had to support the development and the restructuring with the appropriate capital. We also took this measure to compensate for the losses of the previous period, and not because we did not have the solvency limit. ASIROM must become strong again. The capital increase is also a sign for all our employees - showing that we appreciate them and we are a resilient company, part of a strong international group -, and for our clients. XPRIMM: Can we expect a change in the ASIROM values and brand orientations in the future? B. S.: We are the strongest insurer in terms of sales network and we intend to stay that way. We also plan to jump on the SME sector's development train. Moreover, we have already achieved results by winning several tenders, so we are encouraged to continue in this direction as well. We shall equally get involved in insuring Austrian investments in Romania. Vienna will not intervene in this, whoever offers better conditions and services shall win those accounts. Everything will happen in the spirit of the free competition I was mentioning earlier. XPRIMM: Thank you! by alexandru.ciuncan@mxp.ro, |
|
 |
|
|
| TOP PRESS |
| ERSTE Bank gives up insurance PartnerRe, Official Partner of FIAR 2008 WILLIS Re, Principal Reinsurance Broker Partner of FIAR 2008 AIG Life: leader in five years! 2008 - The awareness year And the claim was paid... PPF asks for EUR 78 million for ARDAF and RAI GENERALI places its stake on unit-linked ASITRANS-EUROINS grows 46% in 2007 Exponential growth for QBE in Romania OMNIASIG Life aims at 6% of the market |
|
|
|
|
| CEE & CIS |
|
20% is the Bulgarian insurance market growth SOAO Region, purchased by Scandinavian IF P&C Insurance Scandinavia's IF P&C Insurance purchased the Russian insurance company SOAO Region and thereby enters the Russian market of insurance services. SOAO Region's main focus is motor insurance with approximately EUR 23.7 million of premium income. The acquisition price will be within the normal valuation range for similar transactions in the insurance industry and the goodwill from the transaction will be insignificant in relation to IF P&C Insurance's annual profits. The acquisition is conditional upon the approval of the Russian Insurance Regulatory and the Russian Anti-Monopoly authorities. Last spring IF P&C Insurance opened a subsidiary with branches in Saint-Petersburg and Moscow to provide services to Scandinavian corporate clients doing business in Russia. IF P&C Insurance will continue activities in this area but is now able to operate directly in the Russian insurance market. Russia is one of the world's most rapidly growing insurance markets, which over recent years has acquired more stability and transparency. The deal is subject to approval by relevant Russian regulatory bodies. IF P&C Insurance is the leading property and casualty insurance company in the Nordic region, with approximately 3.6 million customers in the Nordic and Baltic countries, as well as to Nordic customers with international operations. The insurance company is a fully-owned subsidiary of Finnish insurer SAMPO which is listed on the Helsinki Stock Exchange. by costi.boroda@mxp.ro, 27.03.2008 Insurer GENERALI Pojistovna: profit up by 14% in 2007 Czech insurance company GENERALI Pojistovna showed an after-tax profit of EUR 18.94 million in 2007, a year-on-year increase of 14 percent, spokesman Mario BOEHME told CTK Friday. The company collected EUR 296.4 million in premiums last year, up 19 percent on the year. The whole Czech insurance market rose by 8.2 percent to EUR 5.09 billion in 2007. GENERALI's billed premiums in non-life insurance grew by a fifth to EUR 204.24 million, while the market added four percent. Billed premiums in life insurance at GENERALI were 18 percent higher at EUR 92.16 million, and the whole market grew 14 percent. GENERALI is the fifth largest Czech insurer with market share of nearly six percent. GENERALI Pojistovna is part of GENERALI PPF Holding, which operates in 12 countries of central and Eastern Europe. GENERALI PPF Holding is a joint-venture of Assicurazioni GENERALI (51%) and PPF Group (49%). by www.praguemonitor.com, 25.03.2008 |
|
|
|
|
| FINANCIAL NEWS |
|
National Bank of Romania raises key interest to 9.5% GDP per inhabitant, almost 3 times higher than in 2004 MICROSOFT Romania targets 35% increase in turnover in 2008 FMCG market up 19.5% in 2007 |
|
|
|
| EVENTS | ||
|
|
|
THE EDITORIAL STAFF: |
 |
|
| XPRIMM
News - The Romanian Insurance Market Newsletter is best viewed with
an active Internet connection. Click here to subscribe! Click here to unsubscribe! |
|
| |
