No. 146, December 10th, 2009
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XPRIMM
News - THE ROMANIAN INSURANCE MARKET NEWSLETTER No. 146, December 10th, 2009 Click here to subscribe! Click here to unsubscribe! |
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This year, however, introducing the bonus-malus sistem was also added to the eternal polemics over growth of premium rates. Viewed with skepticism by the general mass-media, the system is reflected as the new "apocalypse" for drivers. It is lost out of sight the fact that the implementation of the bonus-malus, from January 1, 2010, will bring benefits for 90% of the insured, in the context in which, according to estimates, only 10% of those who have bought an MTPL policy cause damage. In this context, a driver who had no accidents in a period of one year may receive a bonus of 10%, and the reduction can even reach 50% of the cost of the policy in over 7 years, in the absence of any road events. After www.constatulamiabil.ro and www.asigurarealocuintelor.ro, the public information campaign on the concept of insurance, started by Media XPRIMM, launches a new challenge: the first web-site dedicated exclusively to motor insurance. Beyond the purely informational zone, the portal www.asigurareamasinilor.ro aims to help the insured to get informed regarding the changes that await them starting next year. In addition, the site offers an application that helps the drivers to see in which bonus or malus class they will fit in from January 1, 2010, but also what increase/reduction will their MTPL premium rate will bear. And because, unfortunately, the insurance does not solve everything in case of accident, www.asigurareamasinilor.ro offers the driver a second original application; so, any person who was involved in a car accident can find out what to do. We are convinced that the good understanding by the general public of basic concepts of the insurance sector, in general, and of the motor insurance, in particular, will gradually level off the "absolute evil" perception the insurers have upon the latter. And the Campaign initiated and ran by Media XPRIMM, of which the portal www.asigurareamasinilor.ro is a part, represents a step forward... by mihaela.circu@mxp.ro |
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CEE, RUSSIA&CIS | FINANCIAL NEWS | EVENTS |
| INTERVIEW |
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Cristian BALANICA: The financial crisis facing both our economy, and the whole world, has produced an "earthquake" among the auto manufacturers, the local dealers; and the results are not delaying to appear also in terms of significantly reducing the sales volume, compared to the similar period of the previous year. Insurance, as secondary industry, is directly affected by the decrease of this important sector of the economy, so the class which has implicitly suffered most is motor insurance. Much tougher lending conditions represent another one of the reasons. The existing situation, at worldwide level, regarding financing might mean that getting a loan or a leasing has become much more complicated. Thus, many potential car buyers had to postpone their acquisitions they had planned in the budget set for 2009. However, I can say that the activity of PIRAEUS Insurance has not suffered, on a contrary, it grew by 32% compared to the same period of last year. XPRIMM: How will the brokerage market evolve by year's end in your opinion? But in 2010? C. B.: The number of insured will certainly be lower - for most of them, insurance costs will be passed on plan three or four as importance -, so I can say that in real terms there would be a slight decline of the insurance market, at least for 2009 and for early 2010, rather than a stagnation. XPRIMM: What were the consequences of limiting to 15% the commission for MTPL policies and how did this measure affect profitability of the brokerage activity? C. B.: The portfolio structure of PIRAEUS Insurance Reinsurance Broker is not one based on this insurance class, this being complementary to the Motor Hull policy offered to our customers, thus we could not have been affected by such a decision to limit the commission. Moreover, this segment grew by 46% compared to 2008, from RON 2,805 million to RON 4,091 million. XPRIMM: What is the most severe problem of the profile market, as you see it, for the next period? What are the solutions for the development of the brokerage market in times of crisis? C. B.: The main problem of the profile market is, in my opinion, the professionalization of the sector. In this regard, I welcome the establishment of the Institute of Management in Insurance by ISC, that comes in a quite difficult period, but thus contributing to raising the professional level, much needed in the brokerage market. Solutions to develop this segment are numerous and depend on the strategy of each manager, but I can say that the most important one of them is, for PIRAEUS Insurance Broker, the idea of "Financial supermarket". Banks enrich the portfolio of banking product packages, giving customers credits, deposits, cards and insurance policies with a single signature. Depending on the bank or broker, a client can create the ideal product, without resorting to more profile institutions. XPRIMM: How will the percentage of underwritings by brokers evolve, in the total of the underwritings? (In 2008 it was 27%, and in Q1/2009 - 23%, so a decrease). What share do you estimate for the current year? C. B.: In 2009, the situation will look the same. Insurance companies attempt to cut costs - on all lines of business, with their staff and spaces in which they operate -, in order to increase their liquidity, which shows only one direction. The focus will be mainly on the collaboration with brokers, where costs are relatively constant. Between 25% - 30% will mean contribution of insurance brokers in the total underwritings volume. XPRIMM: What are the insurance classes targeted on medium term by insurance brokers? C. B.: There is a certain interdependence, if I may say so, between the forms of insurance that insurance companies and the people that activate in the profile brokerage field want. Property is the "star'' in 2009 and, due to economic situation, the most wanted - not sold - product is retail on this segment. XPRIMM: How did the crisis influence people's perception about insurance? What insurance classes have development potential for the next period? C. B.: Unfortunately, the crisis is not over, even if the market shows small signs of revival; but as for lessons learned, we will not be able to discuss that for another few years. It is the first time when, after many years of "double-digit'' growth, the insurance market must draw back and find new solutions. There are still unexplored niches, there are strategies that must be re-analyzed and that were the most important ones 5-6 years ago. All these things depend on the perspective of each of those working in this branch. XPRIMM: 2 months ago, the amicable report of road accidents was introduced. What is the role of the broker, as a representative of the client, in this sense, and what has been achieved so far? C. B.: Brokerage companies are subject to greater stress than the insurance companies, because the "waves of change" are more acutely felt at their level. Regarding the entry into force of the amicable report, here things can have various interpretations. Thus, a very important information channel is represented by the insurance brokers, especially because they assume the role of direct consultants of the clients. The broker is important, as the customer, before addressing to the police, calls his broker and asks what the steps to be followed are. I think it is in everybody's interest that he is informed as well as possible and provides reliable information on the event he was involved in. There are many stages to go before the amicable report will function perfectly. XPRIMM: Thank you! |
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CEE, RUSSIA&CIS | FINANCIAL NEWS | EVENTS |
| TOP PRESS |
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Exclusive: The insurance market at 9 months, now for EUR 99! The new MTPL rules came into force In the first nine months, shareholders have injected EUR 345 million
in insurance companies General insurance - down to EUR 1.3 billion 21% less for life insurance Bogdan ANDRIESCU, reconfirmed as President of UNSICAR ASTRA Asigurari estimates EUR 5 million from on-line sales EXCLUSIVE: BCR Viata, the first position on the traditional life
insurance segment GENERALI PPF buys with RON 1.3 million the withdrawal of minority
shareholders of ARDAF RON 9.2 million profit for UNIQA Asigurari, at nine months AGRAS, delisted from the BSE Over one third of the risk management budgets will increase Road safety - in the forefront of the European Commission |
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CEE, RUSSIA&CIS | FINANCIAL NEWS | EVENTS |
| CEE, RUSSIA&CIS |
| The Old/New Year of Reinsurance in Russia On 21-23 January 2010 REMARK Reinsurance Magazine organizes in the VELES Club (the Vladimir region, Russia) business event 'The Old/New Year of Reinsurance', with the support of PRIMM - Insurance & Pensions Magazine as Media Partner. Click here to read more! by oleg.doronceanu@mxp.ro, 10.12.2009 Moscow hosts the 6th annual "Life Insurance in Russia and CIS" Conference, in February Marcus Evans proudly presents the 6th annual "Life Insurance in Russia and CIS" Conference that will take place on the 25th and on the 26th of February 2010, in Moscow, Russia. The event wishes to offer a comprehensive view of the life insurance market potential in Russia and CIS and also to discuss the recent updates and improvement possibilities of tax legislation in life insurance sphere. Click here to read more! by oleg.doronceanu@mxp.ro, 10.12.2009 Moldova: 6% decrease for the insurance market in 3Q/2009 Insurance companies from the Republic of Moldova underwrote, in the first nine months of this year, MDL 595,5 million (EUR 39,9 million) of gross premiums, down by 6% compared to the same period of last year. On the other hand, insurance claims raised by 43,3%, to MDL 270,9 million (EUR 18,1 million), according to National Commission of Financial Markets (NCFM). Click here to read more! by oleg.doronceanu@mxp.ro, 08.12.2009 FORTIS leaves Russia Dutch—based financial group FORTIS has announced recently its decision to leave the Russian insurance market, according to insur-today.ru. Click here to read more! by andreea.ionete@mxp.ro, 04.12.2009 EUROHOLD Bulgaria sets up leasing subholding The financial group EUROHOLD Bulgaria has made an in-kind contribution of the shares of its Bulgarian, Romanian and Macedonian leasing units, to the newly set-up BG AUTOLEASE Holding, which will operate under the EUROELASE Group name. It comprises EUROLEASE Auto Bulgaria and the two eponymous businesses in Romania and Macedonia. Click here to read more! by dnevnik, 08.12.2009 19% decrease for the Ukrainian insurers in 3Q/2009 In the first nine months of the year, the Ukrainian insurance market showed a 18,4% nominal decrease in gross written premiums, compared to the same period of 2008, according to State Commission for Financial Services. The total volume of underwritings amounted to UAH 14.18 billion (EUR 1.3 billion). Click here to read more! by oleg.doronceanu@mxp.ro, 09.12.2009 ERGO buys VITAL Forsikring's Baltic life insurance operations German insurer ERGO, a unit of MUNICH Re, announced recently it has bought the life insurance operations of Norwegian insurer VITAL Forsikring in Latvia and Lithuania. Click here to read more! by oleg.doronceanu@mxp.ro, 09.12.2009 |
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CEE, RUSSIA&CIS | FINANCIAL NEWS | EVENTS |
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There will be no bank bankruptcies in Romania in 2010 ING improves estimates on GDP contraction in 2009 Dacian CIOLOS: Eastern Europe can revitalize the Common Agricultural
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CEE, RUSSIA&CIS | FINANCIAL NEWS | EVENTS |
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