Insurance with yet unexploited potential
After the first six months of 2010, one segment of the insurance market recorded a significant growth of 90%. We are talking about financial guarantees insurance.
An impetus for its development was Government Ordinance No. 834/2009, stating that the guarantees issued by insurers are forms accepted by public bodies to participate in attributing contracts in the system of public acquisitions of goods and services, along with bank guarantee letters.
Thus, given the private companies are facing severe pressure on credit lines and especially in front of such a pressing need for further investment, participation in public auctions turns into a niche business for insurers. This is because guarantees insurance is an alternative to the bank guarantee letter.
Very few insurance companies, in fact, only five, have however sensed the huge potential of this line of business... For a clear image of the development possibilities, we mention that the annual value of contracts attributed through public aquisitions procedure is nearly five times the volume of insurers' businesses.
This is just one of the many examples of solutions that can be used by insurance companies to overcome these tough economic times... Because there are always solutions for those who know how to seize opportunities...
Author: Mihaela CIRCU
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