Mihai TECAU, President of the Directorate, BCR Asigurari VIG
At the beginning of 2007 we were planning to maintain among the first five non-life insurance companies in Romania. Not only we have met this target, but we have clearly excelled it. We went up one place in the Romanian insurance market - we are now placing the third position, according the estimations.
XPRIMM: How would you characterize, both quantitative and qualitative,
the evolution of BCR Asigurari in 2007? What are the main objectives for
2008 set by the company you represent?
Mihail TECAU: At the beginning of 2007 we were planning to maintain among
the first five non-life insurance companies in Romania. Not only we have
met this target, but we have clearly excelled it. We went up one place in
the Romanian insurance market - we are now placing the third position, according
Our plans for 2008 include continuing both our market position's consolidation
process and the development of the companies' unique identity process, as
expression of a dynamic, modern, reliable and stable personality.
In the context of an insurance market which battling for market share has
sacrificed the main purpose of every business, the profit, in 2008 we will
turn towards developing a healthy clients portfolio set to bring benefits
both to our clients, through financial solidity and a fast claims settlement
process, and to our company, by maintaining the claims rate within the normal
Other targets we have set for 2008 aim at growing the recognition and reliance
rate of the BCR Asigurari brand; elaborating a communication platform with
components for every target audience; gaining more clients and diversifying
the products' portfolio with new products, adjusted to markets' conditions;
maintaining in the first five companies on the Romanian insurance market.
We intend to grow the share of property insurance in our portfolio, maybe
with the help of the introduction of the households' compulsory insurance
and also the share of health, general liability, CARGO and motor insurance.
Regarding the motor hull insurance, which reports a reasonable claim rate,
our main concernment will be keeping our clients and gaining more clients
with the condition of a growing profitability for this insurance class, after
the introduction of the Bonus-Malus system, the franchises and a more efficient
claim settlement management.
However, the cautious follow up of the technical results of this insurance
class and the pricing adjustment with the claim rate reported on different
motor vehicles types will stand for our first challenge.
XPRIMM: What challenges do you expect this year at the insurance market
M. T.: We expect an underwriting activity in profitability and solvency
conditions, strongly connected with a healthy clients' portfolio and, respectively,
the development of a viable and realistic communication platform with every
type of clients BCR Asigurari has.
XPRIMM: BCR Asigurari had one of the most visible MTPL promotion campaigns.
What was the budget allocated to this campaign?
M. T.: The media channels we have chosen for spreading the BCR Asigurari's
MTPL campaign have been selected taking into account also the general marketing
strategy of the ERSTE-BCR Group: radio, written press, in store TV and product
literature as well as an alternative media channel, namely a SMS campaign.
This was supported also by offering a promotional product - a raincoat to
offer you protection from bad weather.
XPRIMM: How do you think the application of the SOLVENCY II norms will
affect the Romanian insurance market?
M. T.: IFRS appliance by promoting an efficient financial management
and a corporate governance culture among the insurance companies is an absolutely
necessary premise for implementing, in optimum conditions, of SOLVENCY II
Presently, the whole European insurance market prepares itself for SOLVENCY
II, reason for which the supervisory authorities from the member states,
reunited through CEIOPS, are developing Impact Studies in order to predict
and asses the economic consequences SOLVENCY II would have.
After these studies, the legislative project is modified as to fit the realities
in the insurance sector and to benefit from the support of as many market
Applying this European Directive will influence all operational processes
of the insurance industry as a whole, and by rapid correction of all solvency
aspects it will radically change the general insurance supervision framework.
As the regulation burdens' will transform into a competitive advantage.
Assuming this, we could consider Solvency II is one of the most important
strategic projects of European insurers and reinsurers, wherefore the adoption
deadline is 2012, as the identification of the most appropriate solution
takes more time.
XPRIMM: How do you consider the competition pressure will influence the
local hierarchy, provoked by the high interest of strategic investors in
entering the Romanian insurance market?
M. T.: Generally, the existence of competition generates a positive development
of the insurance services in the clients' benefit, either individuals or
companies. In every market, improving the services' and products' quality
is stimulated by the growth of the competition.
On the other hand, taking into account that foreign insurance companies have
already entered our market, the local companies will start applying the same
principles and methods used in Europe, in order to raise the quality of insurance
services. Otherwise, a predictable situation will be generated, namely a
bigger risk of losing clients.
Both underwriting and especially post-sale services will be positively influenced.
As for the local hierarchy, it is not local anymore, as seen in the significant
changes of the Top 10 companies' shareholders. However, we can appreciate
the actual hierarchy might modify according to the following mergers and
acquisitions. The moves on the market are interesting to watch and I think
some concrete conclusion would be drawn by the half of this year.
XPRIMM: Thank you!
Editor: Mihaela CIRCU
| Published on 28.02.2008