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Interview of the week


Bogdan STAN, Chief Executive Officer, EUROINS

In 2006, we registered the highest growth rhythm, approximate 145%. The same rhythm we could have in 2007 too, but the company's management had decided to raise the underwriting process's standards.

XPRIMM: How would you characterize both quantitative and qualitative the evolution of ASITRANS Euroins in 2007?
Bogdan STAN:
In 2006, we registered the highest growth rhythm, approximate 145%.
The same rhythm we could have in 2007 too, but the company's management had decided to raise the underwriting process's standards. For example, at the beginning of 2007, ASITRANS Euroins imposed the compulsory deductible franchise for motor hull. Also, 2007 was negatively influenced by the Romanian's integration in the European Union, the green card policies and travel policies significantly diminishing.
Last year was a confirmation year, the business figure growing to almost EUR 30 million. ASITRANS Euroins has proved to be a stabile company, a top 10 company, with almost 100 units in the territory and over 500 employees.

XPRIMM: Which are the company's objectives for 2008?
B. S.:
The company aims a EUR 50 million business figure, a rank in Top 10 at the end of 2008 and beginning of 2009, a rebranding and a notoriety's transfer from ASITRANS Euroins Asigurari to EUROINS Romania. Another important goal is the development of a franchise network in the country. This kind of franchise will attract a lot of valuable people within the company, from insurance inspectors to agents and even brokers, who will understand quickly that this system guarantees significant incomes.

XPRIMM: To what kind of challenges do you expect this year at the insurance market level?
B. S.:
Loss ratio on motor segment will reach unpleasant values for many insurance companies. One must say that loss ratio is the difference between claims and cashed premiums. The claims can in a way be controlled by insurers, but the quantum of insurance premiums depends exclusively on them. The idea that I want to highlight is that the tariffs of some companies for motor hull and motor third party liability are too low. Back to the question, one of the challenges is the loss ratio, grown because of the low tariffs. In 2008, besides the company which will buy ASIBAN, I estimate that 2 more important companies will enter the Romanian market by Greenfield or Brownfield investments.

XPRIMM: ASITRANS Euroins had one of the most visible promotion campaigns for motor third party liability. Which was the investment in advertising?
B. S.:
ASITRANS Euroins hasn't invested in the promotion of motor third party liability, though appearances show something else. This promotion campaign was a intermediary phase in the transfer of notoriety to EUROINS Romania. Regarding the motor third party liability campaign, I regret the lack of creativity and persistence through which the promotion of this financial product is linked to childish offers as trips abroad, raffle and so on.

XPRIMM: When the rebranding campaign is going to start and which are its phases?
B. S.:
The process has already begun during December - January, the motor third party liability campaign being the pretext for the rebranding. The moment we'll get the necessary notices, probably in February, we will take the name EUROINS. The rebranding of ASITRANS Euroins will start within the company, from employees and will continue in all operations - advertising campaign, visual identity and press relation.

XPRIMM: How do you consider the competition pressure, provoked by the high interest of strategic investors in entering the Romanian insurance market, will influence the local hierarchy?
B. S.:
I estimate that in the following two or three years there is the possibility of witnessing to the acquisition of an important regional player by a company unrepresented in Romania because at present there are three, four players which are inactive in our country or in the region. These companies are likely to make their appearance by taking over of a regional company. As concern the hierarchy, I believe they will change according to the context, taking into consideration that among the first 10 companies there are some companies which are related to one distribution channel and others which aimed only the market share, with great concessions.

XPRIMM: Thank you!
Editor: Mihaela CIRCU | Published on 31.01.2008

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