Young buyers don't care if the insurance company has been in business
for a hundred years. They don't care if the company has a multibillion
dollar balance sheet or not. They are spoiled by an entirely different
level of customer experience. People who buy products from Apple or
people who go to Starbucks have a different expectation of what they get
for the money they spend. They want something different, they want
something better. And it's hard for legacy companies to adjust. It's
hard from the change of computer systems, it's hard from the change of
their attitudes ... but however, traditional carriers will have to
adjust in the future so it is tough for legacy companies.
EUROINS Insurance Group operates in 7 European countries and is a
well-recognized brand in 4 of them: Bulgaria, Romania, Macedonia and the
Ukraine. Our market share in Romania is almost 15%, in Bulgaria - about
7% and in Macedonia - 9%. As part of its international growth, EIG will
expand its operations further within the CEE and SEE countries and
continue to consolidate its position in the region and to develop itself
as the leading independent insurance group in the region.
We work in a business which is arguably one of the more exciting ones at
this moment in time. It really does have everything to play for and is
in the midst of some pretty fundamental changes.
Telematics has been
and will continue to be a game-changer. This trend is now expanding
with demotics, which is capturing the so-called 'Internet of Things'
within home connectivity. It's an interesting area in rapid development.
Our strategy remains unchanged - we want to focus our efforts on the non-motor segment, which ensures our stability, and we want to increase the retail business in our portfolio. However, in a market dominated by motor insurance, you must also take this segment into account. Generali Romania is growing on motor while carefully monitoring profitability indicators.
Turkish market remains to be our major operating market and MILLI Re aims to continue its leadership of the market. On the other hand, as part of the strategy of transforming from a local reinsurance leader into an international player, MILLI Re has actively engaged in accepting business from emerging markets including Middle East, Asia, Northern and Continental Africa, CIS and Eastern Europe as well as from some developed markets such as Continental Europe and Lloyd's
Most probably, the Russian insurance market will increase by 5-7% in
2016. The main market drivers for 2016 will be the non-credit life
insurance and MTPL. Compared with the results of the 1st quarter of 2016
there was a slight revival of corporate property insurance segments,
accident and liability insurance. But in fact all business segments,
except for life insurance and MTPL, begin to stagnate and probably soon
will move into a phase of recession.
The MTPL market still hasn't reached the equilibrium point as it is expected a rise in the gross premium volume during the next years. This rise can be driven by many factors such as: the number of uninsured cars, which is still high, the difference of average premium between Albania and the region, the collaboration of AFSA with the universities in promoting the insurance sector.
Client orientation is one of the strategic key elements for us. We have
launched a series of internal initiatives that place the interests and
needs of the client in the centre of all our activities. In addition, we
have to be more flexible in the way we adapt our own organization to
special client segments. Operational excellence and efficiency are other
key elements in this respect.
Insurance market has a strong solvency ratio indicating a high level of capital adequacy and stability, which we expect will be the case in the following period. Positive premium dynamics in H1 2016 are an encouraging sign to expect a successful year, especially in the life segment as the more dynamic part of the market.
It is highly likely that in some markets the insurance sector will have
to be further consolidated, since the present structure is too
fragmented. As a consequence of the already implemented and the upcoming
legislative changes in the medium term, a certain impact can be
expected on the ability of the insurance industry as a whole, and
especially of some individual players in terms of underwriting.
The Russian Federation has created its own specialized reinsurer - the National Reinsurance Company
(NRC), effectively from October 12th, 2016. The main goals of the
company are to offer additional capacity for the Russian market
(including sanctioned risks) and also to cover Nat Cat perils for
consumers. The law stipulates also that local insurers/reinsurers must
offer 10% quota of the risks to the NRC.
Despite all the cliches saying that the "price should not be the first
criteria when buying insurance", the price is one of the most
determining factors from a customer's pint of view. I think instead of
criticizing this behavior, we must accept and internalize this natural
fact. All sales channels are steering their customers for the best
Following the implementation of Solvency II, TRIGLAV Group will continue to strengthen its position in the Adria region and to develop as the insurance hub of South-East Europe through organic growth and potential takeovers, should an appropriate opportunity arise.