No. 137, August 6th, 2009
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XPRIMM
News - THE ROMANIAN INSURANCE MARKET NEWSLETTER No. 137, August 6th, 2009 Click here to subscribe! Click here to unsubscribe! |
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| EDITORIAL |
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Variant A: "The building owner was not insured, so he will pay the damages out of his own pocket" or Variant B:"The building was insured, so an insurance company will cover all damages". However, it is good that people talk about insurance, or at least about the benefits of the existence of insurance. But, invariably, variant B has a further negative continuation, derived from the question: "If the building was insured, are we not by any chance witnessing an attempted fraud?". The approach is fully demonstrating the simplistic general Romanian attitude regarding insurance. Thus, either you do not have insurance and then you pay out of your own pocket or, if you do and the insured event happens, you are (in a way) categorized as a possible suspect... And, in case of the fire from Millennium Business Center, the general press offered a similar scenario: the event occurs, the building was insured ... Is there a fraud case? However, with this occasion, a big step forward has been taken: for the first time, people were discussing, at maximum audience hours, of terms like tenants liability, building constructor liability or business interruption! We are in the EU - the time has come for discussions and for attitude towards insurance to move up to another level. by alex.rosca@mxp.ro |
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| INTERVIEW |
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Interview
with Marie KOVAROVA, Marie KOVAROVA: In 2009, we can forget about double digits growth that the Romanian insurance market experienced recently. On the other hand, on the long term, the Romanian insurance market has a very high potential. This is because Romania is one of the largest central European countries, but the least penetrated with insurance (measured either as GWP/inhabitant or GWP/GDP). Alas, people will be less and less focused on fast consuming and becoming more interested in securing their life standards long-term. Now it's the time for the strong insurers to enforce their position within consumers minds, become more client oriented and offer them stability and trust. Keeping promises will be one of the most important selection criteria, even more important than unjustified discounts and on the spot decisions. I suppose there will be lots of changes in the policies and strategies approaches of the major insurance companies from our local market. This means that, as a whole, the local insurance market will become healthier in the near future. Those who will understand and apply this general principle will resist on the market and will have good results.The general tendency of local acquisitions and the fusion process will keep going; there will take place other merges on the Romanian market, in the sense that small companies will be bought by international insurance groups. XPRIMM: Which could be the sources for insurance market development in 2009? M. K.: In 2009, the insurance companies will be much more focused on financial healthiness than on obtaining market share for any price. They will have to deliver to their customer's reliable services, which means, among others, fast claims settlement and clear securing of financial stability. Romania has a lot of potential sources for insurance market development, many channels being so far underexploited. We are planning to be there in the future period and to approach solutions that in fact will make the consumer's decisions easier and will help them understand the importance of insurance more than in the past. XPRIMM: Which insurance market segments remain the most promising in the current economic conditions? M. K.: Motor insurance will keep being key insurance business in retail, but also e.g. household insurance and life insurance will become more and more important. In non-retail segment, the SME sector will grow as well. XPRIMM: Where can the cost-cuts be made first and where is cost reduction not advisable? M. K.: Each insurer has its own development and efficiency improvement strategy and I don't think there are any general rules. As far as we are concerned, we don't see cutting costs at any price as a solution. We are more focused on continuing the careful underwriting process on all insurance lines, increasing efficiency and maximum use of existing resources in the company (human, financial, administrative, IT etc.). We are more focused on identifying and exploiting efficient communication channels and on maximizing internal efficiency. XPRIMM: How did the consumers' perception regarding the insurance field change in the frame of economic crisis and how could insurers overcome such changes? M. K.: At such a time, people feel very insecure about their jobs, their own businesses or their monthly budget. These things being considered, they want stability and safety. That's why I think that they will mostly turn towards the companies with positive reputation, that they can trust and that inspire safety. I congratulate those who have become aware of the importance of building reputation and have invested in their image. Those who have ignored this process will definitely not be able to make these steps overnight, because reputation is built and consolidated over time. The companies that have had a healthy growth during the last years, that are profitable and constant, will be perceived as the most trustful one. In the next future, customers will not be oriented especially on low cost products, but on safe and constant insurance companies. While in the last months all the heart was about financial companies' bankruptcy, customers will look over for stability and trust first of all. As far as the GENERALI brand is concerned, it was built with great attention, both internationally, and in Romania. The clients choose us for stability, tradition and know-how and they trust that we will fully respect our promises. GENERALI has a constant platform as a sign of respect showed to its clients. Our portfolio is equilibrate and has grown with responsibility and moderation. XPRIMM: As GENERALI PPF launched the public offer for ARDAF's minority stakes and wants to delist the company from the Bucharest Stock Exchange, what does the Holding plan regarding ARDAF in the next period? M. K.: Through ARDAF we are planning to cover the market segments that were so far not present on GENERALI target. ARDAF has a very good distribution component, especially within rural and small urban areas, which will continue to be our focus. As a newly member of GENERALI group, I believe ARDAF will be given a positive image boost that we are planning to sustain by lining up the quality of services, and not only, to GENERALI standards. We are not planning to merge brands as this is not our goal, but going for a multi brand approach in the nearest future. XPRIMM: What does GENERALI PPF prepare for Romanian insurance market next, in terms of future projects, future products etc? M. K.: In the nearest future we plan to ride a steady growth and follow our long term objectives without risky actions. GENERALI is a strong brand, with very deep tradition, and is planning to be the same in the nearest future. We will continue therefore with our quality of services approach and launch of new products based on our client needs, trying in the same time to be up to the newest market trends. XPRIMM: As GENERALI Asigurari had a very good evolution on life segment, how do you intend to at least maintain this growth pace and further develop this important segment in the company's portfolio, given the current economic conditions when Romanian clients are even less interested in life insurance? M. K.: The drop in the GWP will lead to stagnation in the life insurance market in 2009. We will probably witness a very small growth, of 1-2%. Currently, we can speak of a growth tendency of traditional insurance, in the total market, and a drop in unit-linked insurance, compared to the previous years, as there will be short term lack of trust in capital market. XPRIMM: Thank you! |
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| TOP PRESS |
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The story continues... It's been 11 years today since Media XPRIMM began its activity as a company of public relations of the insurance and private pensions markets. It's also the 11th year of existence for the first editorial project of the company: PRIMM Insurance & Pensions Magazine, after which the Specialty Review INSURANCE Profile followed, in 4 years. The web portals 1asig.ro and pensiileprivate.ro, launched in 2000 and, respectively, in 2008, also won quickly the status of the first source of information for insurance and private pensions markets and they have almost 11,000 constant subscribers. Click here to read more! by redactia.mxp@mxp.ro, 10.07.2009 Angela TONCESCU: "The crisis influence upon the insurance
market is minimal" RON 600 million in H1 for OMNIASIG ASTRA Asigurari-UNIQA doubled its profit in H1/2009 GENERALI does not take unnecessary risks in Romania Two CEOs at the leadership of EUROINS ARDAF shareholders have approved tripling the share capital GENERALI Asigurari wants to increase the rate of participation
in PAID ARDAF brings niches of customers and territorial expansion to
GENERALI PPF Holding RAI has moved in the GENERALI Asigurari headquarters
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| CEE, RUSSIA&CIS |
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IX International Yalta Finance Forum November Business Meetings in Moscow PZU negotiates the takeover of KD Group Insurance market of Ukraine - down by 1.2% in Q1/2009 Lithuanian insurance market - down by 20% Ukraine: State Regulator restricts the acces of low rated companies
on the national financial market Slovenian insurance companies see premiums rise |
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| FINANCIAL NEWS |
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"First Home" convinced 156 Romanians and stabilized prices of old
homes Growth for all mutual funds in July ERSTE: Romanian results are good; Hungary, a pleasant surprise The "First Home" program drives prices up by 10-15% |
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| EVENTS | ||
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