STATISTICS:

Interviews

Crisis realities impact Engineering insurance in Russia

Describing the general situation in the Russian construction industry, it is also important to notice absence of any new system players - companies with or without international capital, which appears anyway a very obvious and expected outcome.

Melda SUAYIPOGLU
Corporate Business Officer
ALLIANZ Turkey

While Turkey's per capita income is above the world average, per capita insurance spending is merely a quarter of the world average and one-tenth of the European average. Insurance has yet to reach the desired level in Turkey. This is a developing sector. Low insurance levels and high insurable potential continues to draw the attention of international investors to the Turkish insurance market. While only 15 firms operating in Turkey out of a total of 58 had international capital in 2001, the number of firms with international capital has increased significantly since 2008, reaching 44 at the end 2014.

Tom JOHANSMEYER
VERISK

What do London, Paris, and New York have in common? Increasingly, the answer is Turkey. As reinsurance hubs around the world face soft market conditions brought on by abundant capital and quiet catastrophe years, underwriters are hungry for opportunities to drive profitable growth. And while a wide range of mature market strategies may offer incremental returns, they can't provide the near-term gains that the market craves. The real solution is to bring more "original risk" to market — new risks transferred into the global insurance and reinsurance community. And that's where Turkey serves as a model for the future of the market.

Igor YURGENS
President
All-Russian Insurance Association (ARIA)
President, Russian Association of Motor Insurers (RAMI)

Introduction of the unique methodology for calculating damage has contributed to reducing the number of litigations settled in a court between insurers and the MTPL clients. At the same time, the number of litigations settled in a court has fallen twice: the insured does not want to be judged or to pay court fees, therefore most of the litigations are settled out of court. Briefly, the parties have learnt to come to a mutual agreement. The only problem area which remains are the complaints regarding the method of calculation for "bonus-malus" (not everything depends on the insurers, car owners sometimes make mistakes in providing data).

Vaagn AGHAVELYAN, Deputy CEO, ROSGOSSTRAKH Armenia

The Government program for the implementation of an agricultural insurance institution in the country is still under development stage, and Armenian insurance companies are involved in this process but it is early to talk about any product. In order to involve insurance companies in agro-insurance there is a need to create a certain infrastructure and to appoint a regulator like the Motor Insurers' Bureau.

Johannes Martin HARTMANN
Chairman of the Board
VIG Re

For VIG clients we are "per definition" their preferred reinsurer, but we apply the same underwriting standards for Group and Non Group business and for both segments we have to compete with other reinsurers to win their business.
What are the main challenges for a CEE reinsurer, what are the main challenges and opportunities for a specialist reinsurer and how can a company can become a significant player in just 7 years? We invite you to find out the answers in the following interview.

Kaan ACUN
Group Manager
MILLI Re

Given the fact that MILLI Re has been able to penetrate into most of the target territories over the 9 year period, the main aim for the medium term is to achieve further diversity in business written from these markets by adding accounts which would be selected on the basis of their potential profitability and related exposure and further reduce the retro element in this book in order to avoid clash of exposures. MENA region continues to be of vital importance to MILLI Re, followed by Asia. We also see a strong potential to grow further with the CIS and CEE countries as well as the African and Latin American regions.

Vasily KOZLOV
(CRIS, MLIS)
Chief Operating Officer
SELECTA Insurance Company
Russia

I cannot say that something significantly occurred after this year's sanction extension - the effect from the "first wave" of sanctions was rather moderate and the biggest problem local players face is finding reinsurance capacity for their clients, who were unfortunate enough to be added to the sanction list. While most of such projects are rather small and capacity can be found locally the market does sometimes see risks valued above USD 1.0 billion, which makes them significantly harder to place.

Dmitry GARMASH
Head of Moscow Representative Office
BARENTS Re (Panama)

Russian insurance community didn't succeed finding a proper, sufficient support from so called alternative markets (predominantly, from China, Asia, MENA) to cover the major portion of sanctioned exposure where the traditional Western markets can't be of support anymore. Thus, the ground for creating a state owned reinsurer looks reasonable to guarantee the high-valued state interests domestically and overseas with a stake on large scale projects (property, construction and cargo for international trade).

Andrey T. UNTON
General Director
BELARUS RE

In order to reduce usage of foreign currency in settlement and to increase the public confidence in the national currency the National Bank of the Republic of Belarus has been taking measures to de-dollarization of the economy. Such measures also affected the insurance sector. Thus, from March 1st, 2015 insurance companies were interdicted to accept premiums from individuals in foreign currency. An exception was made for the two insurance companies engaged in life insurance, including supplementary pension insurance.