2011: Focus on stability!
2010 ended with a decline. But another decrease was essential for
the market, one that was registered in premiere for the last years
by the Romanian profile industry: reduced claims on the general
Last year brought us two premieres: ASTRA Asigurari has become the
market leader since the first quarter, maintaining its position until
the end of 2010. Another premiere is the entrance of one more specialized
life insurance company in TOP 10 most important Romanian insurers:
BCR Asigurari de Viata.
Looking back at 2010, it seems that the figures become less important
when a minus sign in front. Looking ahead at 2011, the optimistic
scenarios announcing decreases of only 5% or the pessimistic ones,
indicating 15% decreases, fall in the background, making room for
another scenario, where the key word is stability!
In conclusion, the year 2011 announces itself as being the toughest
one for the insurance market and, under these circumstances, the
absolutely necessary scenario for the overall market must include
the idea of stability at any cost. Stability with the price of losing
customers, and therefore losing market share, of falling down in
the hyerarchies, which must be viewed differently when the stakes
What are the main challenges that the insurance brokerage market
has to face in 2011? How did the perception of clients regarding
the insurance consultant's role change in the last year?
I think the biggest challenge right now is that all actors
in the insurance market shift focus from price to quality.
Whatever the field, strategies focused on price did not have
long term succes.
Managing Partner, OTTO Broker
Victor SRAER: I think the biggest challenge right now is that
all actors in the insurance market shift focus from price to quality.
Whatever the field, strategies focused on price did not have long
Another challenge is to make as many customers as possible aware
of the fact that insurance is a form of financial protection, and
not some pieces of paper that need to be as cheap as possible. It
is important that people realize they need quality insurance. Currently,
many customers perceive added value only in the sense of obtaining
a lower price and they disregard the arguments about the coverage
that a policy offers.
In this context, insurance consultants become much more important.
The insurance broker can prove his value only if he understands very
well the needs of the client and finds the right solutions for him.
In this period of time, we must be creative and fiind insurance solutions
under the circumstances in which the population's incomes are decreasing.
Even when resources are limited, the broker must and can come up
with effective solutions, in accordance with the clients incomes
and that cover the most important risks.
the winners are...
Insurance Market Awards Gala (GPPA), granted by PRIMM - Insurance & Pensions
Magazine, awarded the best Romanian insurance companies and their
local networks, during a ceremony that took place on the 21st of
March, at Hotel RADISSON.
Over 300 leaders and specialists in insurance and other related fields
were present at the 11th edition of this event.
THE GRAND AWARDS, granted to the insurance companies at the ceremony,
- ASTRA Asigurari - Grand Award - Insurance Company of the Year;
- ALLIANZ-TIRIAC Asigurari - Company of the Year - General Insurance;
- BCR Asigurari de Viata - Company of the Year - Life Insurance.
5 results show the difficulties posed by Solvency II
Results of the Quantitative Impact Study (QIS 5), forerunner of the
new Solvency II regime, were debated on the 16th of March, 2011,
during a seminar organized by the Insurance Supervisory Commission,
at J.W. Marriott Hotel.
Those present have drawn attention to the fact that in Romania, a
market where small companies activate, in comparison with those in
other European countries, insurers will have to take very quick and
effective measures to adapt to new conditions.
ends the year with a new leader and two life companies in TOP 10
Last year ended with an expected evolution. The decreasing trend
has been maintained in the industry since the first quarter and was
confirmed in each of the following quarters and, in this context,
each of the main indicators of the insurance industry finds its correspondent
in one from the previous years.
EUR 1,989 million is the value of gross written premiums of Romanian
insurers of last year. EUR 11 million below the psychological threshold
of the EUR 2 billion and over 100 less than the figure recorded at
the end of 2009. So, nothing so spectacular happened for the insurance
market in Q4, as to cause a significant change of the 5% dynamics
anticipated by INSURANCE Profile after the first 9 months of last
of crisis? The brokerage market reached EUR 800 million
Insurance brokerage market ended the year 2010, according to INSURANCE
Profile estimates, with a total volume of mediated premiums of EUR
800 million, increasing by over 5 percentage points compared to the
2009 result published in the Annual Report on the insurance market,
issued by the Insurance Supervisory Commission.
market share of mediations is approaching 40%
In 2010, the share of premiums mediated by brokerage companies in
total market increased by two percentage points, to 38.2%, amid a
decline of only 0.5% of mediations, to RON 3.2 billion, compared
with the 5.7% reduction of the insurance market. Preliminary figures
for 2010 regarding the insurance brokerage market were released by
the Insurance Supervisory Commission on the 22nd of March, 2011,
during the 6th edition of the National Conference of Insurance Brokers
in Romania, organized by UNSICAR.
"In 2010, compared to the previous year, the volume of premiums mediated
by brokers fell insignificantly, by only 0.5%. This percentage is much lower
than the 5.7% decrease of insurers underwritings, which shows that brokers have
managed, through sustained efforts, not to be affected by the economic crisis.
Moreover, if underwritings had not decreased in 2010 by 5.7%, the degree of mediation
by brokers would have remained at 2009 level", said Angela TONCESCU, President
of ISC, during the event.
the end of the year, we will have a proposal of the new IMD and there
will be a lot of work to be done on the brokerage market
A newly debated topic at the sixth edition of the National Insurance
Brokerage Conference, organized on March the 22nd, 2011, by UNSICAR,
was represented by the changes for which a lot of work has been done
for some time, regarding the Insurance Mediation Directive (IMD1). "There
will follow an IMD2, that will modify the working system of insurance
brokers", stated Bogdan ANDRIESCU, President of the Romanian professional
association of insurance brokers.
Group closes down the regional service center in Cluj, inaugurated
six months ago
ING announced that it decided to shut down the regional service center
in Cluj-Napoca, amid economic and legislative changes in recent years,
that have considerably reduced its medium-term planned efficiency.
Inaugurated in autumn of 2010 as part of a project to improve the
efficiency of life insurance activity, ING Service Center Europe
promised to generate 1,000 jobs by 2013.
and ARDAF shareholders have approved merger plans
GENERALI Asigurari and ARDAF shareholders approved, during the Extraordinary
General Meeting held on the 21st March, the intention of both companies
owned by GENERALI Group in Romania to merge. Management teams of
GENERALI Asigurari and ARDAF have received from shareholders the
empowerment to start merger plans, in accordance with all local regulations.
prepared are the Romanian authorities and companies for
a crisis like the one in Japan?
The requirements for Romanian companies and local authorities
regarding the reaction programs in case of natural disasters
are lower then those of the countries from Western Europe,
North America or Japan.
solutions for revitalizing the health insurance market
The health reform, postponed for years, is more necessary than
ever, taking into account that the sums appropriated yearly
by the Executive for health are insufficient for the the population's
fatalities in the event of an earthquake of 7 degrees on
Richter scale in the Capital
If an earthquake of over 7 degrees on the Richter scale was
to happen, the most pessimistic scenario shows that Bucharest
could register over 500,000 fatalities and the collapse of
the 113 buildings from the class I of seismic risk, according
to Sorin OPRESCU, Mayor of Bucharest.
health, accidents and household insurance will increase
slightly in 2011
Although the Romanian mentality implies that we are "consumers
of mandatory protection" and, therefore, mandatory insurance
is the main sales line, Alexandru APOSTOL, General Manager,
MAXYGO Broker, expects that life, health, accidents and household
insurance will increase slightly in 2011.
0.5% of the students use savings products
Only 7% of the students have money saved and only 0.5% of them
own life insurance with a pension or investment plan, according
to the Financial Markets Data System research, conducted by
GfK Romania, which uses national level data from January -
Asigurari launches the first health insurance for children
on the market
EUREKO Asigurari launched "Junior", a health insurance for
children and teenagers aged between 12 months and 18 years,
designed to cover their specific needs in terms of access to
quality healthcare services.
- back in the black in 2010, even though decreasing business
ARDAF registered, in 2010, a profit of RON 266.600, after the
RON 90.5 million loss registered in 2009, although underwritings
have decreased by 33.6% last year, to RON 217.4 million, according
to the data published by the insurer. Non-life generated almost
all of the total volume of gross written premiums (RON 217.11
million), considering that the life insurance portfolio was
transferred to GENERALI during last year.
Romania has relied on business efficiency and on quality
of services, in 2010
The gross written premiums of AVIVA Romania registered, in
2010, a 12% decrease compared to last year, due to a decrease
of the bancassurance segment and to reduced possibilities of
the population to committing to long-term financial plans,
in this difficult period, according to the General Manager
of the insurer, Mihai POPESCU.
Reinsurance Conference has come to its 15th edition
All-Russian Insurers Association, with the support of the business
center "DELOVOY Format", proudly opened, on March the 24th, XV All-Russian
Reinsurance Conference to be held on March 24th-25th in Moscow. So,
this annual Conference has traditionally become a major social event
which brings together Russian reinsures and their foreign colleagues
for the 15th time already.
Leasing Forum in Uzbekistan - at its third edition
During April 28th - April 30th, 2011, the third edition of
the International Leasing Forum in Tashkent, Uzbekistan, will
take place. It will reunite leaders in the insurance and leasing
field from Central Asia, CIS countries and Eastern and Central
Europe. PRIMM Insurance & Pensions Magazine is supporting this
event as Media Partner.
Group - 120% business increase in 2010
ROSGOSSTRAKH Group Russia has underwritten, in 2010, gross
premiums worth EUR 2.06 billion, up 120% compared to the level
achieved in 2009, while the insurer paid claims amounting to
EUR 1.1 billion. On insurance classes, the property segment
reached EUR 311.70 million (up by 118%).
CIBank and DZI Insurance are adopting the "Country team" model
of European management
On March the 10th 2011, CIBank and DZI, both members of the
KBC Group, formed a council of common management "Country team" type.
An identical model already exists in the Czech Republic, Poland,
Hungary and Slovakia, following the whole KBC group strategy
of consistency at the level of the management structures.
Hermes is expanding in Turkey
Credit insurer EULER Hermes obtained the license to operate
on the Turkish market, on which it has been activating since
2005, through the mother-group ALLIANZ. This approach marks,
the statement said, "a new step in its development as a global
leader in credit insurance, which now offers solutions for
Turkish entities and companies that are exporting in Turkey".
RON in last 11 months
On the 22nd of March, 2011, the National Bank of Romania (BNR) posted
a reference exchange rate of RON 4.1685/EUR and of RON 2.9428/USD.
The BNR exchange rate dropped by RON 0.0335 to RON 2.9090/USD. It
was the lowest exchange rate since the one reported on January 25,
2010 (RON 2.9079/USD).
In the first hour of the interbank trading session on the 22nd of
March, the national currency's quotation had a downward trend, the
exchange rate dropping to a low of RON 4.1480/EUR, a development
that was in line with those seen at regional level.
pc risk premium makes Romania attractive for investors
Romania's risk premium dropped by approximately 10 percent
to 267 base points since the start of the year, the lowest
level in the last 9 months, Money.ro informs, quoting REUTERS.
Analysts point to an improvement in Romania's economy as
the cause behind this development. Romania's risk premium
continues to drop, almost in tandem with the RON's appreciation
level support for FORD's investments in Romania
President Traian BASESCU said, on the 22nd of March, at the
Cotroceni Palace, after meeting Stephen ODELL, Vice President
of FORD Motor Company and CEO of FORD Europe, that he is convinced
that the group's investment at Craiova will be a success, adding
that the DACIA project proves Romania is able to support such
an investment, Money.ro informs.
springs to the North of Bucharest, an untapped treasure
Bucharest is sitting on top of a valuable resource that was
unfortunately forgotten by the authorities. Thus, the underground
to the north of Bucharest has thermal waters with temperatures
ranging from 40 to 80 degrees Celsius, waters that can be easily
used to heat homes, Realitatea.net informs. The method was
successfully applied in Otopeni, in the vicinity of Bucharest.
sees pretax profit of RON 85 million
Romania's biggest electricity producer provides, in its budget
for this year, a pretax profit of RON 85 million. HIDROELECTRICA
estimates incomes of RON 3.06 billion, against expenses of
RON 2.98 billion, according to the draft budget unveiled by
the Ministry of Economy, the majority shareholder of the company,
COSTACHE CEO: Adriana
Business Development Director: Alexandru
Editor in Chief: Mihaela
Scientific Advisor: Daniela
International Column Coordinator: Andreea
Senior Editors: Vlad
PANCIU, Oleg DORONCEANU
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ALECU, Olesea SERGHIESCU
Accounts Manager: Georgiana
IT Department: Octavian
GRIGOR, Dorin PALADE, Cosmin ARMASESCU
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|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
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With the Official Support of: UNSICAR
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April 14th-15th, 2011
Organizer: EURASIA Insurance Company
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|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
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|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