1asig.ro
 About us  Contact  Site Map   Login   


Search
HomeInsurance marketEventsPublicationsXPRIMM TV  
 News 
 FSA 
 Insurers 
 Insurance Brokers 
 Interview of the week 










Interview of the week

Archive

Cristian FUGACIU, General Manager, MARSH Romania


Property insurance rates which also include "the loss of rent" (business interruption) ranged last year between 0.07% and 0.09% of the insured sum. In 2009, the insurance rates have decreased significantly, the range covered being between 0.045% and 0.065% of the insured sum.

XPRIMM: How do you evaluate the evolution, in the first half of this year, of the demand for property insurance for office buildings?
Cristian FUGACIU:
In general, developers and builders of these buildings are international companies that have a good culture of insurance. In the first months of the year in progress, in terms of MARSH mediations on the insurance market for office buildings, we recorded an increase.

XPRIMM: How is the premium for a class A office building rated?
C.F.:
Property insurance rates which also include "the loss of rent" (business interruption) ranged last year between 0.07% and 0.09% of the insured sum. In 2009, the insurance rates have decreased significantly, the range covered being between 0.045% and 0.065% of the insured sum.

The mentioned quotes are for new office buildings, built to current standards.
Another policy that owners of office buildings are buying is the one of civil liability (related to third parties and to tenants). Prices for this policy vary depending on the limit of compensation, therefore, for a limit of EUR 1 million, the premium may vary between EUR 2,000 and EUR 3,000, and for a limit of EUR 3 million, the premium may even reach EUR 5,000 - EUR 6,000.

Some major office buildings in Romania are also insured against the risk of terrorism and loss of rent due to terrorism. Premiums for such policies have fallen a lot as compared to last year. Thus, in 2008, for a limit of EUR 15 million, the insurance premium reached around EUR 20,000. In 2009, for the same insurance limit, the premium may be EUR 15,000 or even less.

XPRIMM: What are the risks against which the owners of office spaces should be insured?
C.F.:
In general, policies that best cover the risks which an office building can confront with are: Property, Loss of Rent (Business Interruption), Terrorism and Civil Liability (related to third parties and to tenants).

XPRIMM: What are the tendencies occuring now regarding office space insurance?
C.F.:
Even if the economic recession hit directly in the construction market in general, for the moment there are enough office buildings that were put in use or are to be put in use in the months to come. In the same sense, the insurance culture of the clients on this segment, but especially the fact that throughout time this insurance has proven useful, make our expectations for this segment to be positive.

With the economic crisis, we notice a change of attitude from the customers, regarding reducing costs related to insurance. This reduction is usually done through the internalisation of risks. Thus, the companies decide how much risk they can take and how much they can raise the value of the deductible and to eliminate some types of insurance.

We believe that the development of this segment is closely related to the number of office buildings, but we also believe that developers understand the utility of insurance, and the fact that there were enough claims in the past has done nothing but convince them accordingly.

XPRIMM: Thank you!

| Published on 09.07.2009






















Copyright 2022 (c) 1asig.ro
powered by Media XPRIMM