Autumn means it's harvesting time in vineyards and orchards and the moment when a cycle ends. For other trades, this season is the time for a fresh start ... For reinsurers autumn is, par excellence, the time to prepare ... the next "crop" of contracts. Monte Carlo and Baden Baden are the traditional autumn "hot spots" in this business, when the field is set for the next renewal season by meeting with the current or potential clients and evaluating the results of the existing reinsurance arrangements or assessing the future business opportunities, reinsurance professionals. In short, it's the time to ask the essential questions regarding the insurance markets' evolution and the time to get the right answers.
The recent floods that have struck Romania and that led to multiple debates regarding household insurance can be considered a "prologue" for this October's most important event dedicated to catastrophic risks. The 13th edition of ICAR - The International CAtastrophic Risks Forum takes place next month and even from its first editions, it has focused on the necessity of developing a household insurance system in Romania, a country with such high exposure to earthquakes, floods, landslides and other risks.
How much time do you need to find, gather and review an insurer's
history over the last five years? If the insurer you are interested in
is doing business in Romania, than the right answer should be ... no more
than five minutes! The answer the same if you're interested in the
entire market's evolution, regardless of the specific indicators you
need to know. How so? It is enough to pay a short visit to the newest
and most flexible insurance database available in the Central and
Eastern Europe: InsuranceProfile Interactive
Heavy rains have washed the territory of Central and Eastern Europe this summer causing massive floods that resulted in what Swiss Re called "the second most expensive freshwater flood event on record". In short, economic losses of almost USD 18 billion added-on to the pain caused by the 22 lives claimed by the waters.
Although the hot summer days still seduce us into spending some time on the beach, a brief look at the calendar shows that the holiday time is almost over. Thus, it is the right time to ask ourselves what's new on the business ground. But beyond the usual seasonal concerns, a question is uppermost in everyone's mind: where are the growth reservoirs able to feed the future development of the portfolios, especially now, when the financial markets' volatility leaves a very small space for growth in the mature markets?
After an atypical start, dominated by storms, rain and floods, the 2013 summer finally entered in its own right and the sun shines all over Europe: it is again vacation time!
The Romanian insurance business totaled Gross Written Premiums of nearly half a billion EUR during the first quarter of this year. In the past 5 years, for the period under review the market value exceeded EUR 652 million in 2009 while in 2011 companies totaled EUR 492 million, the lowest value of the local market over the past 5 years.
Following press releases stream on the results of the European insurance groups in 1Q2013, I have noticed, among other similarities, the idea that the quiet winter of 2012-2013, showing no significant weather related events, contributed to a better financial result of the companies. Well, in the half year interim reports, probably this idea will miss, as the recent European floods may reverse the trend.
The title above is not a figure of speech. It refers to the Romanian insurance market, the sole market in CEE region which provides, starting these days, a complete history of its insurance market evolution for the last five year in an interactive, fully customizable, quarterly updated data base: Interactive Insurance Profile (www.insuranceprofile.ro), a Media XPRIMM brand.
In the years before the crisis, the CEE countries have built a strong reputation in what the insurance business was concerned. They were clearly and without any doubt recognized as a growing reservoir of the European insurance industry. How much of this reputation has survived to the five years of economic hardship? Should one expect an equivalent delay in reaching the region's potential or maybe the changes determined by the crisis were deeper, totally changing the course of evolution in the region?