I would say, particularly for the CEE region, where there is a harsh competition and pressure on prices, that introducing telematics may introduce a variable which allows insurers to no longer compete only in terms of price. At the moment, every proposition is more or less the same, but introducing a variable you shift the competition from a price one to value one, introducing a unique selling proposition, also helping the market to make a step forward.
My experience over the years has led me to come to the firm conviction that most if not all of the significant consumer type issues that have arisen in various markets over the last decade were not as a result of inadequate regulation but the ineffective implementation of existing legislation. So my advice is use the powers that exist as they are in my opinion fit for purpose and stop adding to the sum of existing regulations which as they expand are becoming more and more remote and an ever increasing cost which is being borne by consumers and by the economy at large.
While the exposure to natural or man-made catastrophes in CEE is varied, all countries can benefit from receiving industry-leading cat planning and response data and best practices from PCS benchmarking reports. In addition, PCS would foster education and information sharing by bringing speakers from the global market to the CEE through close work with XPRIMM. PCS is also part of a broader company called VERISK Analytics, and there are numerous VERISK solutions that could have great benefit to CEE insurance markets.
Young customers, the GenX and Millennials generations are feeling pretty comfortable with insurers using the data from IoT devices and also agree to a large extent that if their insurer would use such data, most probably their loyalty to their insurance provider would improve. In fact, it is for these generations that insurers need to adapt their systems and become able to interact on all channels with their current and potential customers. Price alone will no longer be the main feature considered when choosing an insurance product and provider.
As this is the first year of Solvency II implemented in practice, we are focused on supervising insurance companies' risk assessment and risk management and reporting.
In reinsurance, the problem will be the decreasing of the investors' interest for this segment due to high competition and the reduction of margins in this business, or due to the changes of stock value of insurers that also lead to an outflow of capital from the insurance segment. But, as I see this will not be associated with any natural disaster, instead will be a stock factor, or a decrease of investor interest for this segment.
BELARUS Re cooperates with companies in South-Eastern Asia, participating in a number of property facultative reinsurance programs. In addition, facultative business from such countries as UAE, Saudi Arabia, Bahrain, Azerbaijan and Turkey is recently started to increase. Next year, as in previous ones, BELARUS Re will focus on the international market. Further we plan to expand geographically in order to find new promising projects.
Winner is a company that grew, developed and was built under conditions
of crisis. Our success is not an accident, it was planned and carried
out. From that aspect, we have learned to develop our expectations
around the readiness of our team to respond to any circumstances and
adjust to any changes, and alleviate unexpected external conditions.
Naturally, we are closely monitoring all developments on the market, but
also in economic trends in general, and our consistent growth is the
indicator of our competence to anticipate the conditions and adjust
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.
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.
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.
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).