The keywords: trust, fairness, transparency, effectiveness ...
The context: the European Conference on Consumer Protection in Financial Services, Bucharest
The actors: EIOPA, IAIS, European supervisors, relevant insurers
The issue: how to restore the consumers' confidence in the financial markets, especially in the insurance one
The solutions: trust, fairness, transparency, effectiveness ...
What do Istanbul, the huge metropolis on the shores of the Bosphorus, and Brasov, the charming city in the heart of the Carpathian Mountains have in common? Probably nothing, as some would say. Still, from an insurance professional's perspective, there is more than meets the eye, as they are both hosts to some must-attend spring events for the insurance industry and they provide the launching stage for the latest studies regarding the CEE and CIS markets.
Moscow, Vienna, Bucharest, Kiev, Prague, Istanbul and Moscow again, Amsterdam, Almaty, Tashkent, Brasov, Baku ... no, this is not the description of a leisure grand tour offered by a travel agency, but just a brief review of the business networking and learning destinations available for this spring in the Central and Eastern Europe and Central Asia.
A wave of cold weather and snowstorms has hit parts of Central and Eastern Europe, disrupting the power supply, transportation and school activity, causing traffic jams and spectacular chain accidents. A large part of Romania and Bulgaria were severely hit by winter storms, while snow fell also in the center of the Adriatic region of Croatia - highly unusual considering its Mediterranean climate - and neighboring Montenegro, causing traffic problems. While drivers are hoping the snow will stop falling, insurers are uneasy looking at the motor claims figures.
An insurance policy is nothing more than a promise that a client will be compensated when a certain risk occurs. Contractually binding nonetheless, this promise is therefore the central pillar of the insurance system as a whole and this principle managed to bring the global insurance industry to proportions that the LLOYD's coffee house attendants could only dream of.
After 12 months bringing you the latest and most relevant news of the 32 insurance markets of the Central and South-Eastern Europe and the CIS regions that we monitor, our hope here, in the editorial office of xprimm.com is that XPRIMM News will be among one of this year's most pleasant experiences.
The recent tragedy that struck in Sardinia, when many of the islanders saw their homes destroyed by floods, raised again the issue of putting in place a national legislation for compulsory insurance for damages caused by this kind of calamity. It is not the first time when a dramatic, catastrophic event puts this problem back on the public agenda. The same happened in 2009, after the L'Aquila earthquake. And still... the law doesn't exist yet and the share of the insured claims seems to be small enough not to arouse any interest for the public debates.
"Solvency II - On Your Mark, Get Set, Go" is the title under which will take place, in less than one week, the third section of the EIOPA Conference. In fact, the Solvency II topic was a constant presence on the Conference's agenda over the last few years, each time being emphasized the unsolved issues which determined the new solvency regime's introduction to be several times postponed. Hopefully, this year it seems, at least judging by the title, we will see no delay. In addition, the recent agreement between the European Parliament, Council and Commission on the Omnibus II Directive is an important step for the new Solvency II risk-based regulatory regime implementation to remain on schedule.
One year ago, the ACEA statistics regarding the passenger cars sales in the EU showed the worst month of September since ACEA recorded new registrations in the EU27 in 2003. One month ago, the association reported a 5.4% y-o-y growth in sales for the same category of vehicles. Should motor insurers see this news as a good sign for the future of their business? Considering that the nine months sales figures still show a negative trend ... maybe it is too early for optimisms. What are than the rebound chances for the MOD insurance line, especially in the emerging markets where this market segment is closely linked with the car sales dynamic?
Look at Poland when you need to see the CEE trend, may be a simple rule for those who need to get oriented in the CEE insurance landscape. But is it really Poland the region's barometer? In strictly financial terms, the answer is yes. But figures are not enough to get acquainted with the regions' dynamics, especially taking into consideration the area's diversity.