The supervisory authority pays attention to the process of automation, digitizing, the creation of databases and on-line services in order to improve the quality of customer service and, last but not least the reduction of the level of fraud not only among unscrupulous customers, but also in the case of insurance agents. A similar database has already been created for the MTPL segment and it will be useful for insurers to promote the voluntary types of insurance.
We expect that 2017 will be a better year towards the performance and expansion of the insurance market, the increasing of transparency and trust of the consumers, the fostering and diversification of insurance products, as well as towards the strengthening of inter-institutional cooperation, to promote exchange of experiences in terms of the regulation and stabilization of the market.
In 2016, we have seen a progress on the health insurance line, which is a relatively new insurance product in Macedonia, with modest beginnings in 2013. Last year also brought a boom in unit-linked insurance, also a product only existing in the market since 2015.
We have no interest to be number 1 in Romania in a mid-term, neither on life nor non-life sectors, and that's not our target. I want us to be a profitable company and the best choice for brokers. That's our target: to be the best in class.
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.
At the beginning of the 2000's, when the insurance industry was not sufficiently capitalized and could not take its own retention large risks, about 60-70% of premiums were ceded for reinsurance abroad. In recent years, the domestic insurance market has grown, and the total premiums ceded to foreign reinsurers fell to 35-30%. Nevertheless, we cannot say that potential of the insurance market is fully involved in the reinsurance business.
DASK has developed a target disaster management model for handling both
heavy and minor damage cases. The methodology for assessing earthquake
damage to a building is developed in collaboration with universities and
it is scientifically proven with similar methods. In order to build an
infrastructure that enables DASK to manage claims caused by any kind of
catastrophic events including severe earthquake, cooperation with expert
business partners was engaged.
It is expected that the adoption of the Law on pension and disability insurance in the Federation of Bosnia and Herzegovina which is now in parliamentary procedure and the announced changes to the health insurance system shall lead to the positive changes in the insurance market, to the development of new products and higher share of voluntary insurance premium in the total portfolio.