No. 85, June 7th, 2007

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Only one solution...

According to some studies, one of the greatest fears of the Romanians is referring to the approaching of an inevitable earthquake... And this fear is justified...

"A seism of the same magnitude as the one from 1977 would cause damages of over USD 20 billion (EUR 14.8 billion), according to some forecasts made by the reinsurance company MUNICH Re, using the data recorded at that moment", Dirk HOLLNACK, Geo Risks Research Dept., within the same reinsurer, during FIAR 2007.

A huge and scary figure if we take into consideration the fact that it represents 15% of Romania's GDP (at 2006 level) or an amount 7.5 higher than the level foreseen to be touched by the insurance market from our country by the end of 2007.
Are there any solutions for reducing the losses magnitude?

Only one... the insurance...

But what can we do if we take into consideration the fact that, according to a study made by the National Institute for Statistics, just 4.3% of the dwellings are insured.

Better news are coming from the INSOMAR poll, made at Romanian Insurance Supervisory Commission request, that shows that 12.8% of the respondents have a house insurance.

In order to fight the low level of penetration for this class, the authorities have conceived a protection program through insurance against catastrophic risks. According to the project, this policy will cover three basic risks: earthquake, floods and land slopes.

Unfortunately, for more than two years, this is still in project phase... According to recent statements of the Ministry of Interior and Administrative Reform representatives, the effective collection of the premiums will start in six months after the law's approval, taking into consideration the fact that the authorities need some time in order to adopt the secondary legislation, to create the pool and to launch the reinsurance program.

Until then, let's hope together that the tectonic movements from Asia have discharged the energies from Vrancea...

by mihaela.circu@mxp.ro

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BCR Asigurari de Viata


OMNIASIG Asigurari de Viata

FIAR 2007 - International Insurance - Reinsurance Forum ASIBAN


Interview with Timo Van VOORDEN,
Chief Executive Officer,

XPRIMM: How do you appreciate the evolution of the Romanian insurance market in the last ten years?
On all accounts we see professionalism increasing in line with other CEE countries.
The insurance penetration is very low, despite the high potential of the market. The portfolio of the insurance market continues to be dominated by non-life insurance, especially TPL and CASCO insurances. In the coming years, we expect the proportion of non-life insurances to decrease in favor of Health and Life/Pensions, as the Romanian middle class is growing in number and affluence. Now the Romania is a member of EU, new regulations regarding control and solvency will be introduced and will witness to more consolidation, while small companies will disappear. The quality of services will be higher, as competition will further increase.
At the moment the human resources market is overheated and the insurance market faces the same problem. We are loking for specialists, and we are investing a lot in the motivational package. Their expertise will grow along with the market increase.

XPRIMM: How do you appreciate the Romanian brokerage market over the last 10 years?
Romanian brokers have seen good development. A clear segregation has occurred to distinguish between professional brokers and the opportunistic ones.
We expect them to continue their job as trend setters on the insurance market. Their influence will continue to be more significant, as new opportunities are expected to appear.

XPRIMM: Which was the most difficult moment for the Romanian insurance market during the last ten years?
Last year was a difficult one for 2 reasons. First and foremost high claims ratios in this market's most dominant product line, motor insurances, have wiped out virtually all non life profits. The other difficult episode was with a number of colleague insurers being under close scrutiny by CSA. Close scrutiny is good, it enhances the necessary trust in the insurance sector, but in general to have in 1 year a number of special regime decisions does not help a positive image of the insurance industry.

XPRIMM: Which do you think are the most important problems that Romanian market faces now?
Political instability, insufficient legislative framework and incomprehensible court decisions. These issues represent a substantial obstacle for further considerable and beneficial investments to capitalize on Romania's large potential.

XPRIMM: Which do you think will be the main directions of development?
I see a few significant developments for our industry. The pensions reform will reshape the industry and double the total market size in a few years. At some point, complementary health insurance laws will be drafted and this will prove to be another mass market over time. Thirdly, I believe that the market for employee benefits will grow substantially; driven by labor shortages in many disciplines, employers will more and more look for retention mechanisms that various group insurances can provide. Brokers will play an important role in this development.

XPRIMM: Do you believe the growth rate will be maintained in the next year? Please comment on it.
The growth rate will be maintained, excluding mandatory pensions. Including the 2nd pillar will skyrocket!

XPRIMM: Thank you!

by daniela.ghetu@mxp.ro

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Mr. Timo Van VOORDEN,
Chief Executive Officer,


World Bank: Romania should apply bolder tax policy
Romania, Bulgaria and Latvia need more ambitious tax policies, since they can hardly afford the higher spending stipulated for this year, World Bank economists say.
Most of the countries in the region do not take enough advantage of their economic growth to improve the condition of public finance, and the situation is not expected to change significantly this year, according to a World Bank report presented in Bucharest on Central and Eastern European (CEE) states that have recently joined the EU.
"The need for a more ambitious fiscal policy is acute for Latvia especially, but also for Bulgaria and Romania, that can hardly afford the tax relaxation scheduled for this year", Thomas Blatt LAURSEN, Chief Economist at the Warsaw Office of the World Bank, said.
On the other hand, LAURSEN also held that political tensions in Romania had a small impact on economy, as the political environment has become less important than the economic one after the country's accession to the European Union.
"I believe that the economy is less sensitive to the political system after accession, as state policies are shored up, and politicians can do little for the situation to get derailed", LAURSEN said at the presentation of the World Bank report over the ten states that recently became EU members.
by costi.boroda@mxp.ro, 31.05.2007

Local investments, up 16% in Q1
The most attractive domains for investors are trade, energy and communications.
The net investments made in the Romanian economy in the first quarter reached RON 7.7 billion (EUR 2.3 billion), up 16% over the first three months from 2006, of which more than half are from new constructions, informs the National Institute of Statistics (INS).
Thus, RON 3.8 billion were intended for the new constructions projects, while RON 3.36 billion were invested in equipment. Other expenditures accepted as net investments rose RON 151 million in the first three months from 2006, to RON 569 million.
The most attractive sectors for investors are constructions, retail and wholesale trade, motor vehicles repairs, personal goods repairs, electricity and thermal energy, gas and water, communications, food and beverages industry. The net investments represent expenditures destined to the creation of new fixed assets, the development, modernization and reconstruction of the existing ones, and the value of the services connected with the transfer of ownership over the existing fixed assets and of the lands purchased from other entities or from the population. Important investments were made also for the purchase of animals for work, production and reproduction, vineyards, orchards or reforestation.
by costi.boroda@mxp.ro, 6.06.2007

CEC privatization, after 2009
The bank wants to increase its market share subject to assets from around 4 per cent to 6 per cent until 2011.
The Savings Bank (CEC) will not be privatized in the near future, first the bank will be developed, with a good quality management, Varujan VOSGANIAN, the Minister of Economy and Finances, declared.
"Maintaining CEC in the state portfolio does not mean a reserve towards privatization, because Romania privatized over 90 per cent of the banking system", VOSGANIAN said, in a press conference organized for the presentation of the new strategy of the bank.
The quality of the management is more important now for CEC than the nature of the shareholders, estimated the Minister of Economy and Finances. "Nobody doubts the Government's opening for privatization, thus the privatizations for the sake of privatization are no longer made", VOSGANIAN stated.
CEC President, Radu GHETEA, said that whatever the decision of the authorities is - privatization with a strategic investors, EBRD or IFC, like in the case of BCR, or on the capital market - it cannot be achieved before the end of 2009, concurrently with the finalization of the first stage of development of CEC, according to the new strategy. GHETEA also added that any of the two variants could finalize successfully after 2009.
CEC privatization was stopped in December last year, after the state received only one offer, from the National Bank of Greece, considered too low. The Hellenic bank offered EUR 560 million for the majority stock. By the end of 2006, the Government increased by around EUR 150 million the share capital of CEC and pointed out that the bank will be restructured, and will not be privatized any longer earlier than two years from now.
CEC, the only commercial bank remaining the property of the state, wants to increase its market share subject to assets from around 4% to 6% until 2011, the target segment being the population and the small and medium sized firms from the rural area and the small towns.
The bank also intends to consolidate the market share in the deposits segment to 7-8% in the same period of time, according to the strategy set for CEC by the sole shareholder, the Ministry of Economy and Finances, and the new management of the credit institution.
The bank defined as a new target segment the population and the small and medium sized enterprises, especially in the rural area and the small towns, with less than 50,000 population. CEC also wants to hold a market share of 20% for credits and 25% for deposits.
by costi.boroda@mxp.ro, 25.05.2007

Lower interest rates stimulate investments in Romania
A diminishment on the monetary market will lead to the reorientation of the population towards higher-risk investments, such as stocks or investment funds, according to a study made by UNICREDIT Group.
The segment with the most promising evolution will be that of long-term placements, especially that of pension funds. Thus, assets of private pension funds, Pillar II and III, will go up 54% by 2009, while next year they will reach EUR 300, reads the analysis.
Analysts anticipate financial wealth will amount to an 8% GDP quota in 2009, against 12% in 2007.
Among the risks likely to affect the population's wealth is the exchange rate and the interest rate. Interests will continue to drop, especially for new loans, on the background of inflation and risk premiums reduction, but also as a consequence of toughening competition in the banking segment, according to UNICREDIT analysts. Another risk that mustn't be overlooked is the population's degree of indebtedness, UNICREDIT analysts showing that the value of back payments is on the rise, but their rate remains at a low level.
According to the study, the GDP mortgage share will increase in Romania in the next years, considering that the current level, compared to that of the European Union, is still very low. Also, mutual funds will record a yearly progress exceeding 60% in the next three years.
by costi.boroda@mxp.ro, 23.05.2007

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The Money Channel



Romanian Insurance Market Figures (2006&1Q 2007) now available for Download

Issue 2/2007 of Insurance PROFILE Quarterly review is now available for download on www.insuranceprofile.ro. The current issue of the review includes, in a 68 pages special edition, the Romanian Insurance Market Audited figures for 2006 together with the preliminary figures from the 1st quarter of 2007.
In order to download it please login using your e-mail address together with your insuranceprofile.ro password of Your account. Click here to login!
If your account has enough credits all you need to do is to download the current issue.
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by editor@insuranceprofile.ro, 1.06.2007

Motor Hull insurance grows
In the first quarter of 2007, the motor hull insurances' market grew in real terms with 45.52% according to the results published by Insurance Profile Review.
Thus, the premiums underwritten on this class reached RON 561.63 million (EUR 165.85 million), comparative to the RON 370.15 million (EUR 103.85 million) registered in the first quarter of 2006.
In the same period, the paid damages on this segment increased rapidly, their volume nominally growing in European currency with 97.57%, from EUR 37.48 million in the first 3 months of 2006 to EUR 74.05 million in the similar period of this year.
ALLIANZ - TIRIAC continues to be the leader of this class, with RON 152.51 million (EUR 45.04 million) gross written premiums and a 27% market share. The second and the third position, are held by OMNIASIG (11.04%) and ASIBAN (10.22%).
The Romanian insurance market's results for 2006 ( audited) and those preliminary of the Q1/2007 are available for download on the Insurance Profile review's web site : www.insuranceprofile.ro.
by mihaela.circu@mxp.ro, 5.06.2007

A new supervisory philosophy for the Insurance Supervision Commission
"The Insurance Supervisory Commission supports FIAR - The International Insurance Reinsurance Forum, event which facilitates the dialog between the representatives of the profile industry, having a contribution to the promotion of the insurance market both at national and international level, and, not at last, to the increase of the insurance knowledge among the people", Tudor BALTA, Vice-President of the Insurance Supervisory Commission stated in the opening of the International Re/Insurance Conference of FIAR, on 22nd of May 2007.
"The Romanian adherence to the European Union means not only benefits but also responsibility of our involvement in the elaboration of European legislation and representation of Romania in the European organizations", Tudor BALTA added.
Thus, The Insurance Supervisory commission has elaborated a series of principals which governs its activity, among these being the application of an equal, equidistant and nondiscriminatory supervisory treatment.
Also, the Insurance Supervisory Commission will change its philosophy in order to be perceived as an authority which mainly supervises from the prudential point of view. "This way, it's necessary a permanent dialog with insurance companies, insurance brokerage and professional associations in the field so as to offer Commission a better image over the current problems and also to streamline the regulatory activity and supervision", the quoted official concluded
by mihaela.circu@mxp.ro, 22.05.2007

ALLIANZ - TIRIAC Private Pensions starts to sell on Pillar III
On 4th of June 2007, ALLIANZ - TIRIAC launched the sales for the first facultative pension fund, AZT Moderato.
This fund is, generally, for those wanting performances which are the result of an equilibrate investment strategy.
The company intends to offer soon other facultative pension funds, so in this regard it has put documents for the authorization of a second facultative pension fund, AZT Vivace, at the Supervisory Commission of the Private Pension System.
All employees and persons who gain incomes assimilated to wages can contribute to facultative pension funds, their contribution being deductible in a EUR 200/year limit.
ALLIANZ - TIRIAC Pensii Private starts the sales for the first facultative pension fund with 2,200 marketing agents, already authorized by the Supervisory Commission of the Private Pension system.
"As the offer of ALLIANZ - TIRIAC to get to as many potential participants as possible until the end of June 2007, the number of marketing agents will exceed 3,500", the company's representatives declared.
ALLIANZ - TIRIAC Asigurari, the leader of the Romanian insurance market is the main shareholder of the ALLIANZ - TIRIAC Pensii Private.
by mihaela.circu@mxp.ro, 4.06.2007

The concentration tendency remains
In the future, we will witness to a businesses' concentration in insurance field. This is the opinion expressed by Cristian CONSTANTINESCU, President of National Association of Insurance and Reinsurance Companies from Romania during the first part of the International Re/Insurance Conference
"These processes will be determined by the increased interest of international strategic investors in entering on the Romanian insurance market or in consolidating their position in Romania. In this context, inclusive from the operational structures point of view, the local hierarchy is far from being stable', the quoted official stated.
This fight for winning market share may cause structural imbalance and finally affect the market reputation in a whole. "That's why, during this period all of us involved in this activity must be aware of the responsibility we have in the consolidation process of the market", Cristian CONSTANTINESCU explained.
Thus, the need for identification of common initiatives so as to improve the public's opinion on insurance concept becomes more and more striking.
"In this context National Association of Insurance and Reinsurance Companies from Romania, as representative association for the operators in the field, has an important role", the President of association considers.
In 2006, all 24 members of National Association of Insurance and Reinsurance Companies from Romania underwrote over EUR 1.5 billion, and estimations indicate they will exceed EUR 2 billion at the end of 2007.
by mihaela.circu@mxp.ro, 22.05.2007

112 insurers from European Union are interested in Romania
The number of insurance companies from the European Union which have notified their intention of operating in Romania to the Insurance Supervisory Commission exceeded 100.
So, 112 insurers have announced the Romanian authority regarding the possibility of activating on the insurance market without to be under its supervision. Among these, there are companies from neighbor countries as EUROINS from Bulgaria, but also 4 insurers from Hungary.
Remarkably is the wave of notifications that were made in May, after at the end of April only 66 insurers expressed their intention of operating on the Romanian profile market.
In the same time, 93 intermediaries in the field remitted notifications to CSA, as the subsidiary MARSH from Netherlands, AON Denmark, NORWICH Union and LLOYD'S &PARTNERS. According to estimations, the number of companies which express their intention of entering the Romanian insurance market, will grew rapidly in the following period.
This forecast is sustained by the large number of companies, which notified the supervisory authorities of the countries, which adhered to the European Union in 2004. Thus, during 1 year and a half, in Slovakia 329 insurers had notified their intention, in Slovenia 220 companies and in Hungary 324.
by mihaela.circu@mxp.ro, 4.06.2007

5,000 agents prepared to sell private pensions
The number of marketing agents authorized by the Supervisory Commission of Private Pension System reaches 5,000.
This way, until now a sale force of 4,858 is ready to convince people to buy private pensions.
According to the data on the site of Supervisory Commission of Private Pension System a number of 2,211 are from ALLIANZ - TIRIAC Pensii Private, company which starting with the 4th of June 2007 began to sell for the first facultative pension fund, AZT Moderato.
In a top of authorized agents number made by the Supervisory Commission of Private Pension System, the second place is held by ING with 2,005 registered persons.
AVIVA has for the moment 611 agents, while BCR Life has authorized 26 persons.
In the same time, AON is the only intermediary prepared for the sale of pensions, the company having 5 marketing agents.
However, in the next future, we should expect an increase of authorizations, taking into account that companies which are preparing for sale of private pensions, announce a sale force of 10,000 agents.
by mihaela.circu@mxp.ro, 5.06.2007

Motor Third Party Liability grew 19.32%
In the first quarter of 2007, the MTPL market registered a real growth in national currency of 19.32% according to the data published by the Insurance Profile Review.
The nominal increase in EUR was 30.23%.
The authorized companies on this class underwrote an amount of 645.13 million premiums (EUR 190.51 million)
After the first 3 months the leader of this segment is ASIROM, with RON 112.43 million (EUR 33.2 million) written premiums, followed by OMNIASIG with RON 91.52 million and UNITA with RON 82.79 million.
At the moment, in Romania there are 16 authorized companies on the MTPL segment, the most recent name added to this list being CLAL Romania.
Also, according to the recent reports of the Insurance Supervisory Commission, 6 companies from the European Union notified their intention of operating on the MTPL segment in Romania. Those 6 insurers are from Great Britain among these being NORWICH Union, QBE Insurance and XL Insurance.
The Romanian insurance market's results for 2006 (audited) and those preliminary of the Q1/2007 are available for download on the Insurance Profile review's web site : www.insuranceprofile.ro.
by mihaela.circu@mxp.ro, 4.06.2007

Another company enters the private pensions' ring
INTERAMERICAN has handed in the request for the authorization of its private pension company, which will operate both on Pillar II and Pillar III. The leader of the new entity, called INTERAMERICAN Pensii, will be Frans van der ENT, a specialist with over 12 years experience in the field.
"INTERAMERICAN has decided to enter the private pension market because of its great potential and especially because of the pensions' reforms", Frans van der ENT declared.
With a social capital of EUR 5.5 million and a new headquarter, the company is going to have in the next 2 months around 60 employees dedicated to private pensions. Also, EUR 1 million will be invested in advertising- promotion actions of the offered funds.
The company's business plans indicate that it is going to register losses in the next 3 years as a result of the investments in the expansion of the clients' base.
The company will have an equilibrate approach as concern the fund's administration as for the portfolio to have a low risk degree. The fund's placements will be 35%in government bonds, 20% on the capital market, 20% in corporative bonds, 15% in municipals and 10% in treasury bonds.
by mihaela.circu@mxp.ro, 31.05.2007

Private health insurance - substantial change or cosmetics?
"We need a large private health insurance system, for all people... The growth of this segment will occur when the entire population has access to these services and not only the high class", Marian Sorin PAVELIU, Deputy of the Romanian Parliament concluded at the Private Health Insurance Day of FIAR - International Insurance and Reinsurance Forum.
"For the moment, there is an operational legal frame and a possibility of deduction of the private health insurances' expenditures from the employer's point of view. However, they must understand this is a frame law and it needs an interpretation...", the quoted official stated.
Yet, the change can't be made only by the political class. It's necessary that insurers interact with it, make proposals in order to get to a fitted formula for all", Marian Sorin PAVELIU added referring to the private health insurance law.
Also, PAVELIU stated that the lack of substantial funds for the modernization of medical services both from the equipment point of view and professional personnel, makes the only solution to be the change of the system, which gets through a financial crisis.
by vlad.panciu@mxp.ro,
andreea.ionete@mxp.ro, 24.05.2007

The health insurance industry ready for reform
The reform in the health insurance system must rely on the public-private partnership, which should have as base a series of bi or trilateral partnerships between insurers, medical services providers, Insurance Supervisory Commission, National House of Pensions and Other Insurance Rights, Ministry of Public Health and other directly involved parts", Dan CONSTANTINESCU, Member of Council of Insurance Supervisory Commission declared during the Private Health Day of FIAR.
In order for the system to function, it's necessary a clear delimitation of the responsibilities of all involved parts and a concerted action of the partners. Also, the complimentary and supplementary health insurances can't be defined exactly in case of a base package lack", the official believed.
Sorina NICULESCU, General Director of SIGNAL Iduna Services added: "Beside, the obvious need of a clear defined base package, it's compulsory to be extended the deductibility of the private health insurances to natural persons and not only to employers. Thus, it may be possible to exceed the modest penetration degree registered at the end of the last year.
In 2006, private health insurance segment had a real increase of 68.22%, to RON 46.2, million representing the most spectacular evolution in the whole Romanian market. However, it had a 0.81% weight in the total amount of premiums (0.19% more than in 2005).
In the first quarter of 2007, health insurances registered RON 11.33 million, up with 20.13% than the similar period of 2005.
by vlad.panciu@mxp.ro,
andreea.ionete@mxp.ro, 25.05.2007


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Russian Compulsory MTPL Insurers May Join Green Card System

The Russian State Duma is now considering amendments to the laws on insurance business and compulsory MTPL insurance. According to them, Russia may join to the international MTPL insurance system Green Card. As a result Russian insurers will be able to conclude contracts covering liability of motor vehicle owners traveling to member countries of the Green Card system.
According to the existing legislation, motor vehicle owners can acquire Green Card policies through insurance intermediaries in foreign insurance companies.
If Russian motor vehicle owners are going to travel abroad, they will have to conclude a contract of international compulsory insurance and to obtain an insurance certificate in the form determined by the Government of the RF.
The bill defines such expressions as "object of international insurance" and "insurance risk". The value of the sum insured will depend on the legislation of that country where a traffic accident occurs. The share of premiums to be paid out by international contracts will be at least 80%. Furthermore, the Government of the RF will fix insurance tariffs and their structure. The term of validity of such contracts will vary from 15 days to one year.
According to the bill, a company has to meet some requirements if it wants to write international insurance business. An insurer is obliged to have at least five year of experience in writing MTPL insurance and one year of experience in writing compulsory insurance as well as to pay to the fund of current obligations a single fee (equal to EUR 500,000 at the rate of the Central Bank of Russia on the day of payment).
The bill may come into force in January 2009.
At present the Green Card system has 44 member countries. They are all EU members, Ukraine, Byelorussia as well as Israel, Iran, Morocco and Tunis.
by RP Newsline 29.05.2007

The Russian Duma approves specialization amendments for IC
Russian deputies have voted for approval of the Insurance Law amendments on unlimited period for refusal to operate in life insurance in line with specialization activities.
According to amendments, insurers, which had decided to specialize in property classes, can provide services to policyholders and insured's under life insurance contracts until they expire without changing them or concluding new ones. Companies should inform Federal Service for Insurance Supervision on the class under which they will limit and then stop their operations, before July 1st 2007.
The bill was introduced by Deputy Alexander KOVAL, president of All-Russian Insurers' Association. He noted that the law No. 172-FZ, enforced four years ago, has bound insurers to separate businesses by choosing life or other insurance classes, according to ASN.
Since then "many insurers have successfully underwent specialization, ones have created subsidiaries for personal lines, others hoped for Russian 'maybe', but the majority were captured by Ministry of Finance, as it so far failed to adopt the important specialization document - procedures for transferring insurance portfolio", deputy said. In his words, termination or transfer of hundreds of thousands of life insurance policies requires "a lot of time." Also, it is "objectively difficult" to receive written permit from all policyholders and insureds for insurer's change.
by oleg.doronceanu@mxp.ro 7.06.2007

Non-residents are allowed on the insurance market of Ukraine
The Supreme Rada of Ukraine has allowed non-residents to render auxiliary services on the insurance market of Ukraine.
According to these changes to the Insurance Law, insurers-non-residents have acquired the right to render auxiliary services in the Ukraine - consultation, risk estimations and claims solving.
Besides that, the approved bill removes existing restriction of the insurance sum at a rate of 75 % of a project cost of insurance, in case of insurance by non-residents of large risks.
At the same time, insurers-non-residents are allowed to carry out in Ukraine the activity connected with insurance of large risks (sea transportations, commercial aircraft, start of commercial rockets and the freight).
Also, they can be engaged in granting services on insurance intermediary, such as brokerage and agency operations, the reinsurance, connected with insurance of large risks.
The bill 3601 was approved with the purpose of harmonization of legislative base of Ukraine in conformity with requirements of WTO.
To be noted that in November 2006 the legislative authority of Ukraine forbade insurance activity of non-residents in Ukraine except for insurance of large risks.
by irina.galasanu@mxp.ro 6.06.2007

National Reinsurance Company of Belarus, in searching for rating
Belarus reinsurer has begun necessary procedures for receiving the international rating. The company negotiates with rating agencies and analyses their offers, according to BELTA.by.
State Reinsurance Company was founded in Belarus in 2006, by the President decree, and began its activity on December, 1st of the last year. Its authorized capital amounts to EUR 20 million.
Resources for these purposes are allocated from the state budget. According to the decision of Ministerial Council from May, 30th, 2007, authorized capital of the state reinsurer will be increased by EUR 107,1 thousands up to EUR 20.1 million.
The company takes risks in reinsurance and transfers a part of the insurance responsibility to other insurers. The balanced insurance portfolio allows to create and to provide financial stability of operations.
Initially, Belarus insurance companies have been obliged to transfer to the National Reinsurance Company in reinsurance 10 % of the superfluous risks. At the moment this rate is 20%. Insurers place other part of risk among other Belarus insurance companies or outside republic. It is planned, that after a 10-years period, the share of the state company in risk reinsurance of Belarus insurance companies will totalize 100 %.
Recently, the company has concluded agreements about cooperation with all insurance organizations of Belarus, and also with some Russian insurance and reinsurance companies. Cooperation with certain western insurers is also adjusted.
The officials from National Reinsurance Company have noted that the company cooperates with insurers not only on obligatory basis, but also on voluntary.
by oleg.doronceanu@mxp.ro 4.06.2007

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XPRIMM Newsletters


General Director: Sergiu COSTACHE Executive Director: Adriana PANCIU
Coordinator: Alexandru CIUNCAN

Editor in Chief: Mihaela CIRCU
Senior Editor:

Events Coordinator: Georgiana OPREA
IT Department: Octavian GRIGOR, Dorin PALADE

Edition Responsible: Costi BORODA
e-mail:   xprimm@primm.ro


Reproduction or use without permission of editorial or graphic content, in any manner, is prohibited. The Editorial Staff is not responsible for the truthfulness or the accuracy of the presented data. The Editorial Staff has the right to present the data in it's own manner. In what concerns the use, in any manner, of the information contained in this e-mail, Romanian laws apply.

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