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.
There aren't any type of compulsory insurance laws operating in the Georgia, which is one of the determining factor that in 2014 insurance GPW was of only 1.2% of the GDP. Still, the recent catastrophes have proved that the insurance companies have properly settled all their losses with the help of appropriate reinsurance mechanisms.
The first major challenge for the system is financial stability, which is the main topic we have to care about. We cannot assure the good and smooth handling of international claims if the financial stability of the Green Card System is not assured.
All Moldavian insurance companies will not be allowed to sell green card policies anymore, which means that they will lose an important part of their business. Another one, the Moldavian drivers will have no possibility to freely go outside of the country without purchasing frontier insurance. And frontier insurance is much more expensive than buying a green card here. Also, the Moldavian Bureau will still have to pay claims for policies sold before.
The most promising business line in Georgia, based on market capacity and potential, is the motor line. The point is that, among officially registered 900 000 vehicles, approximately 7% are insured with motor hull risks and about 6% are MTPL insurance holders. With the implementation of MTPL Law, which is planned for next year within the EU Association Agreement, the motor insurance has to become the line that fuels whole insurance industry.
The economic environment and the insurance market are fully correlated. Healthy growth of the insurance business is hardly possible without economic growth. Of course, we have been an example of an expanding business in the times of economic downturn, but this expansion also comes along immense managerial and organizational efforts.
The European Insurance Report 2015, released by SWISS Re in June 2015, is based on a survey of 13,000 people across 13 countries in Europe and the Middle East. The Report looks into attitudes towards what life and health insurance products people have in place, where the gaps are in their protection and focuses on possible solutions to help with the financial consequences of unexpected health shocks, especially for sudden disability or serious illness. According to the Report's findings, collectively, the total level of underinsurance in the countries surveyed is currently around EUR 750 billion. Assuming that people would need a 60% replacement income if unable to work because of illness or injury, the report finds that at current levels replacement income would barely cover 40% for most people.
Recently, SWISS Re organized their annual event dedicated to the Russian market - SWISS Re Summer Reception - and presented its plans and expectations regarding the development and future perspectives of the company on the Russian market. More than 100 representatives of the top insurance, reinsurance and brokerage companies attended the event in Moscow.
There is virtual no building in Germany, which doesn't have fire insurance. Additionally more than 90% of all buildings have an insurance cover against losses from hail and storm. 40% of all buildings do have an extended cover against natural hazards, including flood, heavy rainfall, snow pressure, subsidence, landslides, etc. In the past, the introduction of compulsory insurance against natural hazards was discussed over and over again. However, because in Germany we do have a working and efficient market for natural hazard insurance, there is no need for a compulsory solution.
Ratings assignment had a positive impact on AzRe's reputation on the local market, as it is one of the highest ratings in the economy of the country. Moreover, the rating allows us to underwrite more risks from foreign markets. We have started writing more business from post soviet countries, as well as some countries from the South East Asia, Middle East, and Central/South America.
The PAID objectives for this year, the causes for which the penetration degree of the compulsory real estate insurance is lower than 18%, the damages paid and the information campaign on the insurance importance and benefits targetted at the population are among the topics discussed by Nicoleta RADU-NEACSU, General Manager of PAID Romania, during the interview with PRIMM Asigurari & Pensii magazine.
What we have accomplished over the last 5 -7 years is to become a medium sized reinsurer. We began developing as a regional reinsurer, a fact that is no longer a reality. We are proud of who we are and we always start by looking at we've achieved in the past. Meanwhile, we need to always focus on our partners as their satisfaction is a target always on our mind.
Claims managers Van Ameyde CEE have been active in the Central Eastern European and CIS countries for some ten years now. The company has developed from motor, bodily injury and property claims handling to providing complete claims outsourcing services as well as IT solutions aimed at making claims processes more efficient. Van Ameyde is the only claims management organisation with its own full-service IT company, called (Zero)70 with offices in Rijswijk (the Netherlands) and Lisbon (Portugal). We speak with Krzysztof (Kris) JABLONSKI, Managing Director of Van Ameyde CEE to find out more.