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XPRIMM News No. 180, June 9th, 2011


XPRIMM News - The Romanian Insurance Market Newsletter
No. 180, June 9th, 2011

Clients come first!

Increasing customer satisfaction should be, theoretically speaking, the main development path of a company, be it dedicated to consumer goods, real estate or financial services market.

Practically, experts say, as customer requirements increase, until recently marketable products become obsolete and small and flexible companies, apparently doomed to extinction but full of innovative ideas, have a chance to fight for their market place.

However, if we pay attention to the evolution of the insurance market in recent years, we see that, in many cases, the client is missing from the strategies of the profile companies. Although leaders of insurance companies are seeking solutions to reduce the claims ratio, to increase profitability, to develop the portfolio, their strategies are lacking of concerns for raising the degree of satisfaction of the final beneficiary of the insurance - the customer...

Increasingly fierce competition on the Romanian insurance market between world class groups will lead more and more to fights for leading positions in the hierarchies. Still... only players who will provide high quality services will succeed in this direction... Only those companies that will put their clients first will become winners...

Find everything about the milestones of the insurance market evolution in Romania in 2010, as well as about current year trends and other fundamental issues of the field, such as the stage of preparation of Romanian companies for Solvency II, from an interview with…

President, Insurance Supervisory Commission

XPRIMM: The economic landscape of the past two years has brought a number of challenges for the insurance market. However, this industry can be characterized by one word - stability. What were the main measures through which the supervisory authority has contributed to maintaining this stability?
All the Insurance Supervisory Commission's efforts are focused to prevent and act in due time, so that the effects of the financial crisis upon the market be reduced to minimum. In this respect, we are permanently monitoring the activity of insurance companies and brokers and we are taking all measures required to ensure that prudential parameters are met by the insurers in particular. Since 2010, the ISC has a new approach on the supervisory and control process, which starts, in the first place, from the analysis of the manner in which the insurers activity is conducted, from the way of establishing objectives, as well as from the means of implementation and monitoring performances. Also, the objective examination of risk management and of internal control systems has become an important target of the supervisory process.
At the same time, through all the decisions taken, but also in the meetings we have with the representatives of insurance companies and brokers, we are trying to stimulate the adoption of prudent behavior in terms of underwriting activity, risk transfer, intermediation, so that the main objectives of each company will be market stability, protection of insurance products consumers and loyal competition, founded on the business ethics principles.
At least until now, I can say we did this, as long as insurance companies' reserves meet all the legal requirements, while liquidity and solvency parameters are compliant with the prudential norms as well.
Currently, the Commission representatives are involved, at European level, in elaborating measures of implementation of the future solvency regime directive, Solvency II. Together with similar authorities in some countries with which we were able to establish informal partnerships, especially those with whom we already have close collaboration relationships, we will make every effort for these measures neither to allow further interpretations, nor disfavor states with a structure of the insurance market similar to the Romanian one.


Credit Europe Asigurari
fiar_120The main moments and interviews from FIAR 2011, now on XPRIMM TV
One of the major advantages of taking part in FIAR - The International Insurance - Reinsurance Forum is that of being with the leaders and specialists of the market and exchanging ideas regarding the most important subjects of the moment.

profil_2_2011Top 10 general insurance in the first quarter of 2011
According to INSURANCE Profile, underwritings correspondent to general insurance amounted to EUR 397 million in the first three months of 2011, down by almost 12% from last year's first quarter figures. This way, the market share decreased to 79.07%, the value of the premiums being about EUR 54 million less than the total recorded in the same period of last year.
Compared with the results reported at the end of March last year, the hierarchy of the first three companies in the general insurance top remains unchanged, ASTRA, ALLIANZ-TIRIAC and OMNIASIG being, in that order, occupants of the first three positions. The evolution of ASIROM, materialized in a 21.7% positive dynamics in european currency, qualifies it as the leader of the first quarter's hierarchy.

top10_av_t1_2011enTop 10 life insurance in the first quarter of the year
With a value of underwritings very close to the amount registered at the end of the first quarter of 2010, life insurance has a constant evolution, contrasting with the decrease registered in the general insurance segment, shows the latest issue of INSURANCE Profile. This led to an increase of life insurance market share, up to 21% of total underwritings.

case3Almost six million Romanian citizens did not purchase a household insurance
Only 520.000 houses out of 8.3 million households in Romania have been insured for catastrophic risks (AOL) until the end of May, and the underwriting rhythm remains at a low level: 1,000 - 1,500 policies a day. According to Marius BULUGEA, General Manager, PAID - The Romanian Insurance Pool Against Disasters, maximum 600.000 households will be insured against earthquake, floods and landslides risks by July the 15th.

theodor_alexandrescu_7ALICO Asigurari businesses increased by 7% in 2010, above the market average, and the profit exceeded RON 81 million
ALICO Asigurari ended 2010 with incomes from gross written premiums of over RON 205 million, 7.07% more compared to 2009, according to audited financial results announced by the company on the 8th of June, 2011. Nominal increase of ALICO Asigurari underwritings exceeded the average growth of the life insurance market, which stood at 2.32%. Meanwhile, the company's gross profit exceeded RON 81 million.
"The increase registered last year was supported by projects launched in 2009, when we expanded distribution lines and types of products, to prevent customer's pragmatism, expressed in satisfying his insurance needs. The results of the initiatives were visible last year and continue in 2011. Both in 2010, as well as in the previous period, our projects were based on a profitable growth strategy, paying attention to market opportunities", said Theodor ALEXANDRESCU, General Manager, ALICO Asigurari Romania.

asirom_120ASIROM announced the new componence of the company's Directorate
The Supervisory Board of ASIROM decided, in the extraordinary meeting held on May the 30th, the new componence of the company's Directorate. Thus, Mariana DIACONESCU was named President of the Directorate, and Martin STENITZER is the new Vice President of the Directorate of ASIROM. Also, Dragos Marius CALIN is joining the Directorate of the company, taking over the coordination of sales activity, while Daniela MEGHEA will coordinate the life insurance activity.

valentin_tuca3Valentin TUCA, confirmed as CEO of AON Romania
AON Corporation announced that Valentin TUCA would join the management of AON Romania as CEO, replacing Karina ROSU, who left the company on May 1st, 2011.
"Valentin has shown great success in the broking arena in Romania as well as in the Central and Eastern European and the Commonwealth of Independent States (CIS) Region through his former professional commitments. We see his addition to our team as a great step in making our organization an even stronger and more effective competitor in the market. We believe that Valentin will bring a new strength to our organization. He comes with a strong insurance background and extensive broking expertise and we are very happy to welcome him to AON", said Onno JANSSEN, CEO for AON Risk Solutions Central and Eastern Europe.

Health insurance - back to growth after four years of negative dynamics
Cumulated value of gross written premiums of health insurance segment in the first three months of this year amounted to EUR 1.74 million, registering an increase of 33.7% compared to 1Q/2010.
ASITO Kapital could be taken over by the Moldavian insurer MOLDASIG
The leader of the Moldavian insurance market, MOLDASIG, received the positive notice of the local supervisory authority for the acquisition of 99.9% of the shares of the company ASITO Kapital in Romania.
"Stem Insurance" by BCR Asigurari
BCR Asigurari VIENNA Insurance Group in partnership with STEM Sure, launched "Stem Insurance - Insurance for stem cells medical interventions". The product is a first on the health insurance market in Romania and it is addressed to parents and future parents that own a contract regarding stem cells harvesting at the birth of their children and wish to benefit from financial support in case one of the family members might require such a transplant.
PLATINUM Asigurari, ASIGEST and BIOGENIS launched STEM CELL - Insurance for stem cell transplant
PLATINUM Asigurari-Reasigurari, at the initiative of BIOGENIS - Stem Cell Bank in partnership with ASIGEST Broker de Asigurare, has launched the insurance product dedicated to stem cell transplant - STEM CELL, a niche insurance product, that covers all costs and expenses genetared by a stem cell transplant.
ASITO Kapital estimates a 30% increase of underwritings and a profit of USD 400,000 in 2011
Contrary to trends of severe contraction of the insurance market in recent years, caused by recession and financial crisis, for the company ASITO Kapital, this was a very good period, according to the General Manager of the company, Valentin MISOV.
Gabriel CHIRVASE is the new Human Resources Manager at GROUPAMA Asigurari
GROUPAMA Asigurari named Gabriel CHIRVASE as Human Resources Manager, replacing Monica MARCHIS, who has been promoted within the French group as International HR Coordination Director.
baku1Azerbaijan International Insurance Forum, on July 7th-8th, in Baku
Azerbaijan Insurers Association, together with Media XPRIMM and with the official support of the Ministry of Finance of the Azerbaijan Republic will hold the 2nd Edition of The Azerbaijan International Insurance Forum, on July 7th-8th, 2011, in Baku. The event takes place in Baku Business Center and will focus on discussion of conditions and priority directions of development of insurance and reinsurance business in the local and Middle Asia insurance markets.

allianz2EUR 65 million profit for ALLIANZ in CEE
The total value of gross written premiums of ALLIANZ in Central and Eastern Europe has slightly exceeded the EUR 1 billion level, compared to EUR 1.115 billion in the first quarter of last year. The 5% decrease is largely attributed to the life and health insurance segment, which benefited last year from the effects of growth exhibited by some of the markets. The operating profit remained at the previous year level of EUR 65 million.

moscova4Russia: 18.1% insurance market growth in 1Q/2011
Insurance companies in Russia have underwritten in the first quarter of this year gross premiums worth EUR 7.53 billion, 18.1% more than in the same period in 2010. Meanwhile, claims paid by Russian insurers in the first three months amounted to EUR 4.78 billion, up by 11.3% compared with 1Q/2010, according to the report of the local supervisory authority.

Croatian insurance market - down by 0.7% in the first four months of 2011
The gross underwritten premiums of the 26 operating companies on the Croatian market, during January - April of 2011, went down by 0.7%, to EUR 447.40 million, in comparison with the same period of 2010 (EUR 450.70 million). Altogether, paid claims by the insurance companies accounted for EUR 195.99 million, 2.5% more when comparing to the results of the first four months belonging to 2010, when the level of indemnities was EUR 191.06 million, according to the official data published by the Insurance Bureau of Croatia (HUO).
Kazakhstan: Underwritings have increased by 19%, to EUR 329 million, in the first four months of 2011
In the first four months of the current year, insurance companies in Kazakhstan have underwritten gross premiums worth EUR 328.88 million, up by 19% compared to the same period in 2010, when premiums had totaled EUR 276.39 million. Also, claims paid by insurers amounted to EUR 54.52 million, 39.2% more than in the first four months of 2010 (EUR 39.15 million), according to official data published by the Financial Markets Supervisory Commission.
WB: Romania's economic growth - 1.6 pc in 2011, 3.7 pc in 2012
The World Bank (WB) slightly improved its estimate on Romania's economic growth this year to 1.6 percent but revised downwards to 3.7 percent its prognosis for 2012, the Global Economic Prospects report shows.
S & P affirmed Romania's rating to "BB +" with stable outlook
The country continues to display reasonable economic growth potential, but relatively low prosperity, rating agency analysts saying that the Government will continue to consolidate its public finances largely in line with the targets it has specified.
Pipera Flyover 60 pc completed
Bucharest Mayor Sorin OPRESCU stated on Friday, the 3rd of June, that the Pipera Flyover is approximately 60 percent completed. The project that consists of widening the Pipera Street and building the flyover could be completed by the end of the year. The Bucharest Mayor expressed his satisfaction with the stage of the construction works, pointing out that they are ahead of schedule.
Auto tax lowered by 30 pc except for Euro 5 engines - draft
According to the draft ordinance on modifying the auto tax, the auto pollution tax will be lowered by 30 percent for all types of Euro engines except for Euro 5 engines, Mediafax informs. At the same time, the tax will be lowered by a smaller amount or not at all for the most polluting cars of non-Euro categories.
INS: Number of overnight tourists up by 5.1 pc in April
According to the National Statistics Institute (INS) data, in April this year the number of overnight tourists in Romania has grown by 5.1 percent from a level of 433,300 in April last year, Mediafax informs. A quarter of them were foreign tourists. Tourist arrivals in hotels represented 77.9 percent of total arrivals, up by 7.1 percent compared to the same month in 2010.
Ion TIRIAC remains UNICREDIT shareholder
UNICREDIT has an excellent relationship with businessman Ion TIRIAC, who holds 45 percent of UNICREDIT Tiriac Bank, and predicts the bank's main shareholding structure will stay the same, said Roberto NICASTRO, CEO UNICREDIT, Mediafax reports. He also said that paying dividends is not a priority.


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