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Constantin TOMA, President - General Manager, OMNIASIG


The Romanian insurance market still has a high growth potential and the penetration degree of insurance products in the GDP is still small, about 2%, way below the Western European level. Insurance density per individual in Romania has a value of about 70 EUR, while in Austria, for example, over 2,000 EUR.

XPRIMM: How do you think the insurance market in Romania will develop in 2009?
Constantin TOMA:
The Romanian insurance market still has a high growth potential and the penetration degree of insurance products in the GDP is still small, about 2%, way below the Western European level. Insurance density per individual in Romania has a value of about 70 EUR, while in Austria, for example, over 2,000 EUR. These elements lead us to believe that the insurance market will keep the line of development slightly upward in 2009, but will not record a spectacular growth.
I would also like to mention that in our market competition is not directed toward increasing each company's services quality separately, but rather is directed to achieving a higher market rate at any sacrifice, which led to very large losses, especially in the motor insurance area. There have been many companies that tried to steal higher market share with lower prices. After three years of acting this way, the effects are seen in recorded losses. After the shareholders have repeatedly announced that they no longer wish to capitalize insurance companies (who have too much capital for the volume of activity that they develop), we have been all aware that solving these problems and improving the industry climate profile can come only from inside the market, through joint effort of all players, by adopting strategies that respond to current economic conditions and interests of our investors.
This financial crisis opened our eyes in a way. We received a global signal on how to behave, to protect and to act in a market. On the other hand, Romanian companies' shareholders are very careful in supporting other companies that are bringing losses and we all woke up facing the truth. If this year the necessary measures are not taken, if we will not apply tariffs on a serious actuarial background, if we will not operate with minimum administrative costs and properly calculated commissions, if we will not properly size organizations, we will continue to make losses, which will be increasingly difficult to cover in this difficult economic context.

XPRIMM: What are your objectives for 2009?
C.T.:
The main objectives that we have in mind this year are increasing the company's profitability, along with keeping current customers. We want to keep our customers on a long term. We also have in mind a decrease in the motor insurance portfolio share and the development of other non-motor industries.

XPRIMM: What do you consider to be the main insurance policies utility in the context of the current global economy?
C.T.:
Insurance policies prove their utility in difficult economic situations as well. I am convinced that, in such a crisis situation, people will realize that there are in each one's life some material goods they need to protect.

XPRIMM: What are the strengths that your company has compared to the competition?
C.T.:
OMNIASIG is an organization that has not made any rebate from a correct tariff policy, a product portfolio developed in line with market needs and demands and permanently preserved the quality standards appropriate to a top international insurance group such as VIENNA Insurance Group. All these elements can also be seen through the evolution results in a permanent increase registered by the company in the recent years.
We always strive to be an extremely serious company and, especially, to stay always on the podium. These targets were always found in our strategy on medium and long term.


Editor: Mihai CRACEA | Published on 13.02.2009






















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