Liviu HULUTA Editor

> On the 2nd of March 2007, an event of major importance for the Romanian insurance market, namely the second National Conference of Romanian Insurance Brokers, was held in Bucharest. The conference was organized by UNSICAR (The National Union of Insurance Brokerage and Consultancy Societies from Romania) and supported by Media XPRIMM, under the name of Insurance Brokerage - A European Profession, and it aimed at debating on current issues concerning insurance intermediation and consultancy. A large number of experts from UNSICAR member companies, from other insurance companies, from the Insurance Supervisory Commission (ISC) and the Private Pension System Supervisory Commission (PPSSC) attended the event.

European Brokerage

Romania’s accession to the European Union brought both challenges and opportunities for the insurance broker profession. For this reason, UNSICAR decided to provide improve both the communication at market level and the information on the new insurance brokerage standards to be met.

In his speech, the host of the event, Bogdan ANDRIESCU, supported UNSICAR and the insurance brokerage market, saying that insurance brokerage was gaining ground in Romania and that, at the same time, it had to meet the European standards.

2006 can be considered a year when the market developed and reached a total volume of underwritten premiums of EUR 288 million, while the brokers’ share grew up to approximately 20%, added the above-mentioned official. He also outlined that the UNSICAR member companies currently hold around 70% of the Romanian insurance brokerage market.

Support from BIPAR

The Romanian brokerage market is flourishing and it makes BIPAR extremely proud to have partnered with UNSICAR, declared Nic De MAESSCHALCK, Director of BIPAR (The European Federation of Insurance Intermediaries) at the opening of the second National Conference of Insurance Brokers from Romania.

The above-mentioned official stressed the growing importance of intermediary companies to the insurance market: Although ten years ago many were saying that this type of business had no long-term future, the market has proved that there is a global need for insurance brokers.

Involvement of the Supervisory Commissions

The European brokerage was the recurrent topic of the conference, with Angela TONCESCU, President of ISC, launching a call for leaders and specialists present at the event: Now, as we are starting on the European path, brokers should get more and more involved in educating the population.

The ISC President ensured the participants of the Insurance Supervisory Commission’s desire to enter a partnership with the brokers in order to create a better legislation.

Speaking about the activity conducted by ISC last year, the above-mentioned official stated that: The ARDAF transaction is a success, as it demonstrates that tough measures had a positive result and we hope that ARDAF becomes a much more competitive company in the future.

Mircea OANCEA, President of the Private Pensions System Supervisory Commission, initiated the series of opportunities to be presented to the Romanian brokers in the future. His intervention was focused especially on the contribution brokers might have in intermediating pension products, but especially in providing consultancy in this respect for the customers: In the future private pension system brokers can play a vital role if they get an authorization as marketing agents for pension funds.

At the end of the first round of discussions, Cristian CONSTANTINESCU, President of the National Union of Insurance and Reinsurance Companies of Romania, outlined that: The activity of brokers, especially the local ones, is extremely important, because they are and will be educators for attitudes and mentalities, so it is vital for them to conduct a healthy activity. The official briefly presented a collaboration project of UNSAR and UNSICAR, intended to regulate and improve the broker-insurer relationship.

Constraints and opportunities

In the light of Romania’s accession to the European structures, the representatives of the insurance intermediation market analyzed the new conditions in which they will work. Ovidiu DEMETRESCU, Managing Partner, LONDON brokers, delivered the presentation: Are we ready to be European brokers? The representative of LONDON Brokers underlined the fact that the insurance brokerage market from Europe is the most developed worldwide, but the differences in approaches between Romania and the other EU member states place the local market below the European average, in terms of market development.

Building on the idea launched by Cristian CONSTANTINESCU, regarding the collaboration between brokers and insurers, Zorin PUSCASU, Director MEDIATIS Broker de Asigurare and member of the Steering Board of UNSICAR, stated that: UNSICAR analyzed these complaints from both sides, over time, and proposed the National Union of Romanian Insurers a protocol to define and accept the principles and rules of the collaboration between insurance brokers who are UNSICAR members and insurers who are UNSAR members.

After the presentations delivered by the representatives of the insurance brokers, Mihai IORGOVEANU, Director General, EURO ARC Insurance Broker, took the floor and spoke about opportunities and challenges created through Romania’s accession to the EU and about the growth and maturity of the Romanian market. The constraints shall relate to the high level and diversification of competition, costs incurred for insufficiently qualified staff, market concentration around major financial groups and market segmentation due to niche brokers. On the other hand, the Director General EURO ARC, also underlined the fact that: Brokers shall play a much more active role because of an increasing need for customized products and consulting in insurance.

Brokers shall have extended responsibilities, given that the market is to enforce risk assessment and management activities or claim management, everything in order to build a sustainable relation with the customer.

Partnerships for the future

The National Conference of Romanian Insurance Brokers provided the appropriate opportunity for insurers to offer partnerships for the future to the brokers, both in insurance and in pensions.

The second part of the conference focused on the insurers’ proposals for a better collaboration with insurance brokers. The first partnership proposal came from Bogdan STAN, CEO ASITRANS Asigurari, who reiterated the win-win-win concept, initiated in 2005.

The relationship ASITRANS - insurance brokers becomes stronger and stronger, confirmed by the portfolio share underwritten by the brokers and by the event ASITRANS Bowling Cup, stated Bogdan STAN.

An interesting approach was presented by Shah ROUF, Director General of AVIVA, who spoke about a niche market that brokers could penetrate, the employee benefits specialist market, a niche with tradition in Europe that will surely develop in Romania as well, especially with the introduction of the private pension system.

Private pensions seem to be the link between insurers and brokers, considering that both Sinziana MAIOREANU, Commercial Director, INTERAMERICAN and Cornelia COMAN, Deputy Director General, ING Asigurari de Viata, communicated their intention to launch a partnership with the brokers on the pension and life insurance segment.

The future seems to be a positive one for the insurance brokers, given that insurers proved to be more than open towards building a partnership, and if they are to follow the advice of ISC Director General Paul MITROI, that of getting more and more involved while taking a customer-centered approach, they can only win from this.