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
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
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
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
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