No. 165, October 7th, 2010
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XPRIMM
News - THE ROMANIAN INSURANCE MARKET NEWSLETTER No. 165, October 7th, 2010 Click here to subscribe! Click here to unsubscribe! |
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| EDITORIAL |
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The first half has brought an apparent slowdown of the market decline, if we compare the results to the first six months of last year. If we also look at the second quarter of 2010, we realize that, in fact, the market decline is deepening. However, it is not the underwritings decrease that should be the main concern of the market, but the fact that first half figures indicate a worrisome situation on the Motor Hull insurance segment. Thus, the claims value on the above-mentioned class - continuously growing, has exceeded the underwritings level - steadily declining, with half a million euro. The figures of the companies also reveal that this reality was generated by 12, which is over half, of the 23 companies that sell this policy. Therefore, a constantly debated danger, the increasing claims ratio, begins to have visible effects on the market figures and on the results of many companies. So far, shareholders have compensated, by share capital increase, these effects. From now on, due to the crisis, it will be harder and harder for them to do so. In this context, two main questions are raised: what is there to be done and what other effects will companies have to suffer if this trend persists? by alex.rosca@mxp.ro |
Insurance
PROFILE Review Click here to order! PRIMM Magazine Special Report CEE, RUSSIA & CIS  
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| INTERVIEW |
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Richard NATHSCHLAEGER: I would say that for us, it's a very demanding and very fruitful activity. When I started working in 2003 for AUDATEX, as a Region Manager, we were active in four countries in the CEE area and over the last seven years we have managed to extend our business to eighteen countries. In ten countries we have our own operations, our own entities with our own staff and personnel and in the other eight countries we are servicing out of hubs like AUTOVIENNA. In the present, we are planning to go further East in all the CEE area, we want to go to Uzbekistan, Kazakhstan, and basically the hub for these will be Russia. So we see it as a region full of opportunities, even during the crisis our business was quite stabile, shrinking only in one local market and on the other markets we grew, despite the crisis. And we have proved, especially in those hard days, that we can save a lot of money for our customers and that is why we are convinced we will be successful in the future as well. XPRIMM: Because we are in Ukraine right now, how important is this country for AUDATEX at this moment? R. N.: Ukraine is still underdeveloped, we are not yet at the level we would like to be, but Ukraine belongs to the five biggest potential markets in Central and Eastern Europe - due to the fact that it is a big country, with big population, with big car fleet - so, we see a lot of opportunities in the future, even if we are not yet there. XPRIMM: Because you said that this is a particular market, what could you tell me about the approach used by AUDATEX? Is it different than in other countries? R. N.: No, we basically pursue the same strategic approach. We cooperate especially with big insurance companies, whose customers request the use of our system. We are partners with insurance companies, big body shops and big important networks. It is in this context, in this community that we are working. It is basically the same approach we have pursued in Romania, for instance. XPRIMM: Regarding Romania, AUDATEX has been present on the market for five years now; how do you see the development in this country? R. N.: We have been present in Romania for five years now. On the 26th of October 2005 we had the official inauguration party and we also signed the very first two contracts on this date. The development in Romania has been extraordinarily positive; it is by far our most powerful and fastest developing country in the region. We had our first potential customer visits in July 2003, preparing the system, doing pilot tests with the first potential customers took us one and a half years, and then we started in the summer of 2005 and from then on, in five years, did Romania become a successful country. We have eight out of the top ten insurance companies as our customers and we have more than 1,300 body shops that are working with our system. So we are very successful in Romania, we are very proud of this organization. XPRIMM: What would be AUDATEX's advantages when compared to the tough competition on the Romanian market? R. N.: Our big competitive advantage is first of all the much better database, we had it localized and fully translated in Romanian faster than other competitors. Our depth of data is much better than that of our two local competitors. Thirdly, and maybe most importantly, we were the first to invest heavily in the market - investing in people, building up an organization - and this has been paying off now. It is our very firm commitment to the Romanian market, as a very strategically important market. XPRIMM: How did AUDATEX help its clients in times of crisis? R. N.: As I mentioned earlier, regarding also the customers in Ukraine, using our system does not mean a "cost center", but as I would say we are a "cost saving center". If they invest in us we can clearly show that we can reduce their operational cost by applying our systems. We are not only doing this for our body shop customers. Once they agree to work with our system, they become partners in a preferred insurance network, they have many advantages and they get guaranteed business. So, in times of crisis when body shops are not sure if they can get new jobs, our big insurance companies, knowing that those guys are contracted by us, have a very safe business. So we help both sides: on one side, we can help save money, reducing process costs, and on the other side we could demonstrate that if you are part of this community you shouldn't worry about the crisis, because you will still get your business. XPRIMM: What about your objectives for the next period? R. N.: Well, in Romania, as in all the other startup countries, we start with what we call a "basic estimative bundle", so our system only delivers the capturing of the damage, car identification by vehicle number and the calculation. This is a very basic bundle. System wise, we could provide everything from first notification to the settlement claims value chain. So, what our colleagues in Romania will do now is to present further solutions to our customers, details such as: what is in it for you, how much the saving will be for you if you apply a new product or a new service, and to go into broadening our service portfolio. This is our next strategic step. XPRIMM: Thank you! |
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| TOP PRESS |
The International Insurance Conference in Turkey is taking place amid a spectacular growth of the profile market The first half of 2010 represented a major underwritings increase of 25% for the Turkish insurance market, the total figure rising to EUR 3.71 billion (in the first half of 2009, the same indicator rose to EUR 2.98 billion). Also worthy mentioning is the positive dynamic of all insurance classes. It is on this context that sets the stage for the second edition of the International Insurance Conference of Istanbul, organized by the Insurance Association of Turkey. Click here to read more! by oleg.doronceanu@mxp.ro, 30.09.2010 Constantin TOMA:"El Dorado" is over. It's time to start working "Things have started to settle. The, sometimes, immeasurable urge of gaining market share can lead to the compromise of the entire industry. The managers must become more aware of the fact that the absolute priority is generating profit for those that have invested and have risked their money, and not securing a larger market share, which, by all means, does not justify "a gold rush". I say no more "El Dorado", it's time to start working", stated Constantin TOMA, President of OMNIASIG, in an exclusive interview for XPRIMM TV, on the Company's 15th anniversary. Click here to read more! by alex.rosca@mxp.ro, mihai.cracea@mxp.ro, 01.10.2010 PAID: 65.000 premiums, in almost three months since launching In the last week, 9.000 mandatory household insurance premiums have been completed, the total number reaching 65.000 contracts, according to Marius BULUGEA, President, PAID - Pool of Insurance Against Natural Disasters, in comparison to 56.000 at the beginning of last week. Last week, the medium mandatory household insurance's selling rhythm doubled, from 900 to 1.700-1.800 premiums a day, the evolution being determined also by the sale through brokers increase. Click here to read more! by andreea.ionete@mxp.ro, 06.10.2010 CEE MARKETS SURVEY in the first half of 2010: Romania dropped to 6th place in CEE The Romanian insurance marked dropped by one position in the total gross underwritten premiums raking at the Central and Eastern Europe level, being surpassed by the Slovakian insurance market. The downfall of 3.88% recorded by the national insurance market, corroborated with Slovakia's 0.5% increase, created the premises of a position exchange between the two markets. Altogether, Romania's market share in the region decreased from 7.16% in the first half of 2009, to 6.45% in the first half of 2010, according to the "CEE, RUSSIA & CIS 1H 2010 Insurance Regional Survey" report. Click here to read more! by vlad.boldijar@mxp.ro, 29.09.2010 ALICO businesses increased to EUR 30 million ALICO Asigurari Romania, the third most important life insurance company on the local market, registered a 10% growth in the first half of 2010, in comparison to the figures of January- June of 2009. According to INSURANCE Profile estimations, the value of the gross written premiums rose to EUR 29.3 million (RON 121.8 million), taking into account the 3% decrease registered in the whole profile market. Click here to read more! by vlad.boldijar@mxp.ro, 29.09.2010 Efficiency - a "must-have" for all insurance companies Efficiency should become the key-word in all insurance companies activities, especially for those that do not generate profit (client support, debit collecting etc.). Technically, this would allow resource redirecting towards the sales and promoting sectors of the companies' activities. Click here to read more! by mihai.cracea@mxp.ro, 24.09.2010 New projects for MARSH Romania The first half of 2010 for MARSH Romania represented a period of sustained development, in the volume of mediations, as well as regarding other offered services. The company currently owns the most diverse portfolio in the Romanian insurance brokerage market. Concerning the news that MARSH brings to its clients, these are consistent with the company's policy for the past few years: innovation and launching special products, which are consistent with the existing needs. The most recent project of this kind, which is to be launched next month, is a collaboration with RENAULT Group, RCI Banque and three insurance companies for selling personalised motor insurance policies. Click here to read more! by andreea.ionete@mxp.ro, 29.09.2010 Marius BULUGEA: Brokers contributed to the doubling of mandatory property insurance premiums sale The daily medium premiums sale doubled in the last week, from 900 to 1,700-1,800 premiums a day, reaching a total of 56,000 premiums, according to Marius BULUGEA, President of PAID - the Pool of Insurance Against Natural Disasters. One explication for this phenomenon is the increase in sales due to broker activities, "that were more active in the selling of these premiums", declares BULUGEA. Click here to read more! by oleg.doronceanu@mxp.ro, 28.09.2010 EUROINS Romania is relying on product portfolio diversification for growth Between the 29th of September and the 3rd of October 2010, sixth edition of the EUROINS Romania National Sales Conference was held in Nessebar, Bulgaria. The event was part of the annual meeting of the EUROINS teams, from Romania, Bulgaria and Macedonia. Click here to read more! by oana.radu@mxp.ro, 04.10.2010 UNICREDIT and ERGO Asigurari de Viata are selling life insurance with performance reported to the S&P 40 BRIC index UNICREDIT Tiriac Bank and ERGO Asigurari de Viata have announced the launch of a new life insurance product, bearing an investment component, entitled ERGO Oportun. This index-linked life policy offers the possibility of investment through the STANDARD&Poor's 40 BRIC index, based on the evolution of the shares of the 40 most important companies in Brazil, Russia, India and China. Click here to read more! by andreea.ionete@mxp.ro, 04.10.2010 CITY Insurance estimates twice the business figure in 2010, up to EUR 15 million The company CITY Insurance will open, by the end of 2010, 30 branches within the country, in the regions where it is not yet present. At this moment, the insurer has 10 functional branches and 60 employees, following that, by the end of 2010, this number will increase to 150. The investment that this development implies goes up to EUR 500.000, according to Nicolae MUSAT, General Manager, CITY Insurance. Click here to read more! by mihai.cracea@mxp.ro, 30.09.2010 Radu MANOLIU: The mandatory household insurance law is prawn to future modifications The issue regarding the modifications on mandatory household insurance law is still a topical one for the profile companies involved in this system. "The law is surely be improved upon, this aspect being available for the specific rulings as well; given the existing demands on the market, is likely to see, in the relatively near future, the emergence of specific legislation that clarifies or modifies certain aspects", declared Radu MANOLIU, General Manager, CREDIT EUROPE Asigurari. The company supports the 2010 Edition of ICAR - International Catastrophic Risks Forum, dedicated to the mandatory household insurance implementation, as Official Partner. Click here to read more! by dora.alecu@mxp.ro, 04.10.2010 OMNIASIG celebrated 15 years of activity OMNIASIG VIENNA Insurance Group celebrated, on the 30th of September 2010, 15 years of activity on the Romanian profile market, with a grand event at the Parliament Palace. "After 15 years of sustained efforts of the whole team, we have built a company that is one of the leaders of the Romanian insurance market, but also one of the main 400 contributors to Romania's budget. OMNIASIG contributes with 0.23% to the country's gross domestic product", declared Constantin TOMA, President of OMNIASIG. Click here to read more! by mihaela.circu@mxp.ro, 01.10.2010 CERTASIG shareholders will discuss a new capital increase, of EUR 5.5 million CERTASIG shareholders will discuss in the General Shareholders Assembly, programmed for the 28th of October 2010, an increase in capital of EUR 5.5 million or a reduction, down to the level of the assets, according to the published Convocatoria. The goal of this operation is to cover the insurer's financial losses, which rose to RON 30.56 million in 2009. Click here to read more! by andreea.ionete@mxp.ro, 28.09.2010 20% less mediations in life insurance In the January-July period of 2010, life insurance represented 4.8% of the total insurance mediation market, the total value adding up to EUR 18 million (equivalent to 9.3% of the total life insurance market). This consists a staggering 19.5% drop as opposed to the first semester of 2009, as stated by INSURANCE Profile. Click here to read more! by vlad.boldijar@mxp.ro, 27.09.2010 |
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| International Istanbul Insurance Conference |
VIDEO: MILLI
Re will be more present in the Eastern European countries
over the next few years
VIDEO: The
Istanbul Conference
VIDEO: With
10 years of experience, the Turkish insurers give Romanians
advice on the mandatory household insurance system |
| CEE, RUSSIA&CIS |
VIDEO: EASTERN Re: Solid business
in Ukraine and expansion in Turkey
VIDEO: UNITY Re: The Russian reinsurance
market
continues its consolidation
VIDEO: The Russian reinsurance focus on Eastern Europe
VIDEO: The Yalta Forum - a discussion platform
for Central and Eastern European insurers and reinsurers Matteo PEDERZOLI, Regional Director, MDRT Europe talks about MDRT Europe ClassIQ Forum The MDRT Europe ClassIQ Forum, organized by MDRT Europe, with XPRIMM Insurance & Pensions as Media Partner, is dedicated to the best insurance agents and financial advisers in the world and has as concept how to be successful in every aspect of your life. Help with professionalism development and a greater value for ethics are only two of the many key reasons for which participating at this forum can be benefic for your company. The event will take place between the 2nd and 4th of February 2010 in Athens, Greece. Click here to read more! by andreea.ionete@mxp.ro, dora.alecu@mxp.ro, 07.10.2010 Russian government sells ROSGOSSTRAKH stake The Russian government sold a 13.1% stake in ROSGOSSTRAKH to other ivestors of the company, for the amount of USD 285 mil. After this transaction, the Russian government retained a 11,9 share of the insurer. Click here to read more! by mihai.cracea@mxp.ro, 07.10.2010
VIDEO: 35% growth for the Uzbekistan insurance
market in 1H/2010 151 specialized entities on the Russian reinsurance market The Russian reinsurance market has been on an upward trend for the past few years, that started with the investment increase and the professionalization measures that were adopted regarding this matter. Click here to read more! by vlad.panciu@mxp.ro, oleg.doronceanu@mxp.ro, 24.09.2010 |
| FINANCIAL NEWS |
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IALOMITIANU: Social contributions going up from 16.5 pc to 35.55 pc,
fair RENAULT opens spare parts centre nearby Pitesti Net average salary down by 4.7 pc in July |
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