If fines have been delayed, why should I insure
After long delays and, finally, the introduction of mandatory household
insurance, the authorities come up with two important changes for
this year: the applying of the fine is postponed until July 15th,
2011, and those who have bought voluntary insurance do not have to
also buy the mandatory policy.
The result? The rate of mandatory insurance underwritings has decreased from
10,000 policies a day to 1,000, and the sale of voluntary insurance is practically
blocked. Companies have used the mandatory requirement as a lauching ramp for
selling voluntary policies but, at present, we face a situation somewhat similar
to that existing before July last year - a little over 15% of homes are
insured nationwide (voluntarily). Most people say they buy such a policy only
if there is a fine, if the bank is forcing them or as a result of damage.
Certainly, the number of people aware of the need for household
insurance has increased year by year, but the increased number
of unemployed and the decrease of incomes, under the circumstances
of the economic crisis, are negatively affecting their affordability
to buy insurance. If we add to this the fact that, for now, no
one is making us pay fines, we ask ourselves the question: "Why
should I insure my house?".
It would be pretty naive to imagine
that the over 5 million homeowners that have not insured their
house will rush in the next six months
to buy voluntary household insurance.
After all, judging by the
questions coming from the population, but also by the press voice,
the fine is the main incentive for
buying such a policy, rather than protecting the house and the
property gained through a lifetime work. But what will happen if
we face flooding or landslides this spring again? Who do we ask
for compensation if we have flooded our neighbour or if our goods
have been stolen from our house?
Both mandatory and voluntary insurance
are available, cheap and useful solutions for protecting the households,
against the risks
faced by them. So, do we expect until we are threatened with a
fine to buy insurance or do we voluntarily buy insurance, so that
we will not "fine" ourselves afterwards?
XPRIMM: How do you assess 2010, considering the results of ALICO Asigurari
Optimism in the 2011 reviews for ALICO Asigurari Romania,
to the benefit of its clients. An interview with:
General Manager, ALICO Asigurari Romania
Theodor ALEXANDRESCU: 2010 was a good year for ALICO Asigurari Romania,
a year of growth, in one word: profitable. The growth was sustained
by the projects launched in 2009, when we extended the distribution
lines and the types of products. The results were visible last year
and they will be so in 2011, too.
XPRIMM: What are the 2011 perspectives for the life insurance segment?
T. A.: 2011 is marked by optimism, the development of this year being
based on increasing the professionalism in the life insurance industry.
Also, the implementation of Solvency II will provide better corporative
governance for the insurance companies. The project is a legislative
initiative and the insurance companies will adapt their practices
to the good operating conditions provided by this directive. This
program will also make the companies more transparent, more financially
solid and the protection provided for the insured will improve.
Other implemented programs with a similar goal are the norm issued
by the Insurance Supervisory Commission, related to the activity
of insurance brokers, and the norm for agents' licensing.
|ISC: The Romanian insurance market is stable
The Romanian insurance companies are not dealing with serious problems -
this is the result of the insurers activity and financial situations
monitoring, based on their reports, announced ISC. Despite the decline
of the gross written premiums, the insurers managed to maintain the
technical reserves at a similar level to the one in 2009 and have the
liquidity to meet their obligations towards the insured.
UNSAR: The optimistic scenario for 2011 is a 5% decrease of business
"The evolution of the MTPL market, where the number of policies for the
whole year will register a reduction, over which a 20% decrease of
tarrifs is overlapsed, will have a negative impact on the total volume
of underwritings at the end of the year. Thus, my optimistic scenario is
a 5% reduction of the insurers' business", said Cristian
CONSTANTINESCU, President of UNSAR, during the 2011 edition of XPRIMM
Annual Forecast Meeting.
"We are talking of a market that has been losing for six years, and is losing
more and more - we are talking about hundreds of million EUR capital contribution
in the last three years, in 2009 alone the contribution having been EUR 330 million
worth. It seems that, for shareholders of companies present in Romania, money
is neither few, nor too expensive. In 2011 we should see, in my opinion, some
companies going out of the market - and not necessarily some that do not matter
so much in terms of market share", warned Cristian CONSTANTINESCU.
ASTRA Asigurari: 2011, the toughest year for the insurance market
2011 will be the most difficult year for the Romanian insurance market,
believes Radu MUSTATEA, President of the Board, ASTRA Asigurari:
"Due to the crisis, I believe that in 2011 we will have a double digit
decline of the Romanian insurance market, amid a significant decrease of
the motor market. To this, massive reductions of MTPL and Motor Hull
tarrifs (as insurance companies want to maintain customers this way), as
well as increased frequency of claims ratio and of average claim are
According to ASTRA leader, these things will have a negative effect, firstly
upon insurance companies, and then upon the market.
Pricing policies will have a major influence on the stability of the profile
"I noticed a drastic change in the past year regarding the motor segment. The
MTPL segment will remain a key market in 2011, too, and this dominance
will continue to put pressure on the overall insurance market. Given that car
sales will continue to decrease, the Motor Hull segment will not register an
evolution, either. On the contrary, prices will fall, the market structure will
change and pricing policies will have a major influence on the stability of the
industry", said Rangam BIR, General Manager of ALLIANZ-TIRIAC Asigurari.
"Realistically speaking, I expect for 2011 a decrease of 5% of the entire
market, the optimistic scenario being to maintain at the 2010 level. A double-digit
reduction is unlikely, it would mean a lowering down to the 2006 level and I
do not expect the market to follow such a strong downward trend", added
the leader of ALLIANZ-TIRIAC.
Life: The benefit of these years of crisis is customer quality. Life insurance
can not end 2011 in the red
"This year, we expect a 4% increase for the market, but there are certain parameters
that may come as pluses or minuses. We have new players on the market, companies
have adapted to new conditions, they have improved and, after an increasing year
2010, there is no way we will witness a decline in 2011, given that last year
brought a major improvement of the surrenders ratio, a re-enactment of the clients
contracts and, therefore, an awareness of the need for protection and saving.
So, the only benefit of these years of crisis is increased quality of life insurance
customer", said Florina VIZINTEANU, President of the Board, BCR Asigurari
Asigurari de Viata: In 2010, the life insurance market
stagnated and for 2011 we expect a marginal increase
"2010 has started well and ended... not so well. After the first nine months,
the life insurance market recorded a 3% increase, but the economic adjustment
measures taken by the Government had a negative effect upon the market in the
last part of the year. Therefore, we expect a stagnation of the life insurance
segment results in 2010", said Adrian LUPESCU, Chief Insurance Risk Officer,
ING Asigurari de Viata, during the XPRIMM Annual Forecast Meeting 2011.
are pessimistic regarding the insurance market's evolution
"I am pessimistic regarding the Romanian insurance market. There are multiple
causes for such: Romania is being perceived as a country with high political
risk, the legislation is contradictory, thus confusing, and the economical background
is precarious. Thus, there is low credibility regarding Romania and the insurance
market does not have the possibility to register growth again", stated Alexandru
APOSTOL, General Manager, MAXYGO.
Life Insurance: In 2010, people have understood better
the risks and risk tolerance. In 2011, protection and
guarantees products will dominate
"In 2010, we had a confirmation of the stabilization of the surrender ratio and
of re-enactment of life insurance policies. People have better understood the
risks and risk tolerance, which is the only advantage of the financial crisis",
pointed out Violeta CIUREL, President of AXA Life Insurance, the most recent
player on the profile market.
insurance: Business growth... starting 2012
2010 was not one of the top years for health insurance. Stagnation is also predicted
for 2011 and business increase is expected only in 2012. "The health insurance
market was placed at least 15 percentage points below the 2009 one. In 2011,
I expect it to stagnate, presuming that increases will start next year", considers
Carmen RADU, Deputy General Manager of the leading company in this market segment.
2011 will bring a 10 to 15 percent drop on the insurance
market; however, the property segment will register a
double digit growth
"Unfortunately, the motor market is highly affected, both by the effects of
the crisis, as well as by the dramatic reduction of tariffs. I do not think the
motor market will normalize in 2011, on the contrary, I expect a fierce competition
between companies, which will lead to a drastic drop in prices, which will have
a devastating effect on the
overall market", says Iulius Alin BUCSA, President, EUROINS.
EUROPE Asigurari: People believe that a voluntary household
insurance policy should cost EUR 20
"The degree of insurance penetration in GDP and insurance density are some very
important indicators and, in our country, their values are continuously decreasing,
having the lowest level in Central and Eastern Europe. In these circumstances,
insurers must collaborate for the popularization of the concept of insurance
among Romanians and to exploit the non-motor segments, mainly household and health
insurance", stated Radu MANOLIU, Deputy General Manager, CREDIT EUROPE Asigurari.
Asigurari: Decrease for the insurance market, but optimistic
perspectives for the economy
"In 6-10 months, investments will be resumed. In recent years, investments have
decreased by 75%, but they will return and they will generate jobs and wealth
for the population", said Oliviu STOICA, President,
has been a good year for GENERALI on the life segment
2010 was a good year in the activity of GENERALI Asigurari on the life insurance
segment: "The most important things were to maintain and to consolidate the portfolio
and to reduce the surrenders rates", stated Ovidiu RACOVEANU, Life Insurance
Manager, GENERALI Asigurari.
Financial plans for children will be the "stars" of 2011
"If we refer only to life insurance, we estimate a decrease of 6%-8% in real
terms, the measures taken by the Government and increasing unemployment rate
being felt at the level of our portfolio, too. Also, the fact that we have given
up the non-life classes has had a major impact on the distribution force, which
had to be readjusted and strengthened to sell and provide consulting services
on health and life
insurance", said Carmen RADU, Deputy Manager, EUREKO Romania.
Asigurari: For each two PAD (mandatory household insurance)
policies, a voluntary one is sold
GENERALI Asigurari sold approximately 60.000 mandatory household insurance premiums
since the launching of the campaign, in July previous year, and "for every two
sold mandatory premiums, we also sold a
voluntary one", specified Razvan POPESCU, Head of General Insurance Service,
GENERALI Asigurari, during "Ora de Risc" ("Risk Hour") radio show, broadcast
on February the 1st on Radio RFI Romania.
is identifying the 10 major evolution trends of the local
insurance market in 2011
The broker MARSH Romania has analyzed the insurance market perspectives and has
identified 10 major evolution trends for the current year. Although they had
also manifested in 2010, it is very likely that they continue their evolution
in 2011, given current market conditions, said
and BCR Asigurari VIG are offering MTPL with rate payment
and with 0% interest
Owners of BCR cards will be able to purchase in six equal rates and with 0% interest
an MTPL policy from BCR Asigurari. The policy is valid for one year and the clients
must pay its value with their BCR credit cards at the POSs installed in the BCR
Asigurari agencies and working points.
Hostile economic environment makes it harder for life
insurance to develop
"Politics and economics greatly influence the evolution of the life insurance
market. Confused legislation and hostile economic environment can not generate
growth. As long as unemployment increases and population incomes decrease, clients
are not eligible to buy such products, although they would like and they understand
usefulness", said Alexandru APOSTOL, General Manager, MAXYGO.
companies, among the main job providers in 2011, too
Insurance market remains, in 2011 too, on the third position in the top of workforce
recruitment, according to the recruitment site myjob.ro. Thus, in the first three
weeks of January, insurance companies have made 350 jobs available to those interested.
Sales sector is leading the top, by far, with 700 job vacancies, of the nearly
22,000 positions announced by employers since the beginning of the year, followed
by IT&C, with 550 vacancies.
|EASTERN Re is developing its international business
Reinsurance company EASTERN Re, one of the profile market leaders in
Russia and CIS, underwrote in the previous year a premium volume worth
EUR 23.4 million, 61% coming from reinsurance business. A 39% was made
from direct insurance as a result of the merger between EASTERN Re and
MEGAPOLIS insurance company, in June of 2010.
Management Conference in Kazakhstan - at the VIIth Edition
The seventh edition of the Risk Management International Conference has already
become a tradition for the insurance and reinsurance leaders in Central Asia,
CIS countries and Central and Eastern Europe and will take place during April
the 14th and April the 15th, 2011, in Alma-Ata. For over six years, PRIMM Insurance & Pensions
Magazine has been supporting the event as Media Partner.
might invest in a bank in Russia
The Italian group GENERALI is analyzing the possibility to participate in the
capital of the state bank VTB from Russia, according to France Presse. The participation
implies the acquisition of shares worth USD 300 million, which is approximately
1% of the bank's capital.
This action comes amid VTB starting, as part of its privatization strategy, of
a campaign for searching potential investors, in Europe and in the United States,
for selling 10% of its shares.
BOC: Taxes remain unchanged into 2012
The "hard part" is already behind, this is what Emil BOC told Romanians Monday
evening, on the 7th of February 2011, after the negotiations with IMF team. In
what might be regarded as a thank-you message to the
public, who "understood the need for the spending cut effort" in 2009 and 2010,
the PM assured Romanians their future is no longer under the threat of economic
deficit down 5 pc in 2010
The trade deficit slumped by almost 5 percent last year, at RON 39.8 billion,
as exports rose at a faster pace than imports, according to data released on
the 9th of February, 2011, by the National Institute of statistics (INS). Thus,
the trade deficit continued its falling trend, which started in 2009, as the
impact of the international economic
crisis started to be felt in Romania.
BOC to coordinate EU funds absorption
The Authority for the Coordination of Structural Instruments (ACIS) will be placed
under the Finance Ministry's subordination and the Prime Minister's direct coordination
in order to monitor the absorption of European funds, PM Emil BOC announced on
the 9th of February, 2011. During the Government meeting, the PM asked for the
by this transfer to be quickly finalized.
EUR 2 million for organising tourist promotion events
As part of the project for promoting Romania through the new identity defined
by the national tourist brand, the Ministry of Regional Development and Tourism
(MDRT) initiated the acquisition procedure of services aimed at organising the
events for the promotion and development of tourist products and destinations
in the country and abroad, in 2011.
key to successful economic growth
"The state should find solutions to curb red tape and controls to foster
BNR Governor Mugur ISARESCU says.
suggest dozens of economic recovery measures
Businessmen met on January 29th - 30th the Head of the Cabinet in a move to finding
solutions to the economic downturn. Emil BOC promises lower
tax on labour.
COSTACHE CEO: Adriana
Business Development Director: Alexandru
Editor in Chief: Mihaela
Scientific Advisor: Daniela
International Column Coordinator: Andreea
Senior Editors: Vlad
PANCIU, Oleg DORONCEANU
Editors: Vlad BOLDIJAR,
Oana RADU, Mihai CRACEA, Andreea STATE
Junior Editor: Dora
ALECU, Olesea SERGHIESCU
Accounts Manager: Georgiana
IT Department: Octavian
GRIGOR, Dorin PALADE, Cosmin ARMASESCU
PUBLISHED BY: Media XPRIMM
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Copyright©2011 Media XPRIMM
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|Special Report CEE,
RUSSIA & CIS
|CEE Insurance and Pension Funds 2011
March 8, 2011
Organizer: East Euro Links Events
Media Partner: PRIMM Magazine - Insurance & Pensions
For details: www.easteurolink.co.uk
|International Reinsurance Conference - 15th Edition
March 24th-25th, 2011
Media Partner: PRIMM Magazine -Insurance & Pensions
For details: www.re-conference.ru
|International Insurance Mediation Conference - 1st Edition
March 28th-29th, 2011
Istanbul, Turkey, HYATT Hotel
Organizer: Media XPRIMM and Istanbul Underwriting Center
With the Official Support of: UNSICAR
With the Support of: SAIPRO and INSMARKET
Official web-page: www.xprimm.com
|VII International Risk Management Conference
April 14th-15th, 2011
Organizer: EURASIA Insurance Company
Media Partner: PRIMM Magazine -Insurance & Pensions
For details: www.IRMC.kz
|Tashkent International Insurance Forum
April 14th-17th, 2011
Organizer: Media XPRIMM
Media Partner: PRIMM Magazine - Insurance & Pensions
Official web-page: www.tiif.uz
|II Central European L&H Leadership Forum
May 17th-18th, 2011
Organizer: Russian POLIS Information Group
Media Partner: PRIMM Magazine - Insurance & Pensions
For details: www.in-sure.ru
|FIAR - International Insurance-Reinsurance Forum
May 23rd-26th 2011
Organizer: Media XPRIMM
Official web-page: www.fiar.ro
|3rd CEA International Insurance Conference - "Insurance
reform: opportunity or threat?"
June 16th, 2011
Divani Apollon Palace & Spa, Vouliagmeni, Athens, Greece
Organizer: CEA - Comite Europeen des Assurances
For details: conference.cea.eu