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XPRIMM News Special Edition FIAR 2011, May 23, 2011

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Special Edition FIAR 2011, May 23, 2011
FIAR 2011
sala_brokeri_fiar2011Customers, insurers and broker should be in a win-win-win relationship
Brokers' Day, a traditional conference at FIAR, focusing on trends of the insurance brokerage market, has started today at the Sinaia Casino. The topic on the table was the customer-insurer-broker relationship and the broker's dual role - a partner for the insurer and a consultant for the customer - as a potential trigger for a conflict of interests. "At the moment, there is no conflict of interests between insurers, brokers and customers and things are not as complicated as one might think. It has to be a win-win-win relationship that brings about very good outcomes for all three stakeholders", stated Bogdan ANDRIESCU, President of UNSICAR, at the opening session of the Brokers' Day.

prezidiu_brokeri_fiar2011There should be a deadline for disbursing the commission to the broker, just like there is a deadline for paying the premiums to the insurers
All problems are solved if the will to collaborate is there and they should be solved so as to benefit the customer. Still, there is a trend of insurers that centralize the claims and insurance component, as well as the commission payment component. There are situations where it takes 30-40 days from the moment when the insurer collects the insurance premiums until the broker collects the commission. Just like the legislation includes a norm with a five-day deadline for the broker to transfer the insurance premiums to the insurance company, there should also be a rule providing a deadline for disbursing the commission to the broker", stated Viorel VASILE, Managing Partner, SAFETY Broker.

doina_florescuDoina FLORESCU, ISC: It has been admitted that there is fraud due to the expansion of the sales force
"Provided that we have an intermediation contract where the deadline set for the settlement exceeds the validity term of the policy, then it is clear that this deadline has to be regulated", emphasized Doina FLORESCU, General Director, Supervisory and Control Directorate with the Insurance Supervisory Commission.
The main role of the measure of limiting the deadline for the payment of the insurance premiums into the insurers' accounts is to make the intermediaries control better the sales force. Thus, the customers would not find themselves in the situation where they have the claim shortly after the payment of the policy, but they would not be included in the account of the insurance company.
"There are over 10,000 intermediaries on the brokerage market. And here it was admitted the existence of insurance fraud also due to the expansion of those sales networks and to the lack of control over the brokers as coordinators of these networks", explained Doina FLORESCU.

ina_crudu2Ina CRUDU: We are all here to serve the customer, so there should be no incompatibility
"With regard to conflicts of interest, I think we are talking about a mentality that brokers must deal with, because insurers used to collect most of the premiums in the past and brokers were seen as the competition. Figures demonstrate clearly that the trend favors the development of the brokerage market because brokers can provide more developed services than insurers. There should be no incompatibility because we are all here to serve the customer, while making a profit", stated Ina CRUDU, Country Sales Director, ASTRA Asigurari.
Iulis BUCSA, General Director of EUROINS, also thinks that the Romanian brokers' market is headed towards the right growth. "Brokers will become increasingly important and the insurance market cannot grow properly without them. As for the insurer-broker relationship, I think the problems belong to the past and all insurers have learned to treat this relationship professionally", according to him.

cristian_fugaciu6The conflict of interests appears when several brokers make different offers for complex policies, for the same customer
As for the different quotations from insurers and brokers for the same customer, it is not normal to have such differences, but if they exist, the consequences are quite serious, according to the General Manager of MARSH Romania, Cristian FUGACIU.
"There is a conflict of interests between the broker and the insurer or between the broker and the customer because there are cases where, especially for complex policies, several brokers send different offers for the same customer. An example would concern construction-assembly insurance policies. But, when insurers join forces to work for the benefit of the customer, everything turns out well. We need to consider the fact that this is a time when all insurers try to maximize their profit and lower costs through centralization. This is why I believe that, by the end of the year, when the top 10 insurers on the market would sell 80% of the products electronically, this situation would be solved", stated Gabriel OLTEAN, Sales Director, BCR Asigurari.

The National Association of Insurance and Reinsurance Companies from Romania
The National Union of Insurance Brokerage and Consultancy Societies from Romania
The League of Insurance Organizations of Ukraine
Chartered Financial Analyst Romania
Association for Promoting Insurance
CNPF - The National Commission for Financial Markets, Republic of Moldova


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President: Sergiu COSTACHE CEO: Adriana PANCIU
Business Development Director: Alexandru D. CIUNCAN

Editor in Chief: Mihaela CIRCU
Scientific Advisor: Daniela GHETU
International Column Coordinator: Andreea IONETE
Senior Editors: Vlad PANCIU, Oleg DORONCEANU
Editors: Vlad BOLDIJAR, Oana RADU, Mihai CRACEA, Andreea STATE
Junior Editor: Dora ALECU, Olesea SERGHIESCU

Accounts Manager: Georgiana OPREA
IT Department: Octavian GRIGOR, Dorin PALADE, Cosmin ARMASESCU



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