Mihai TECAU, President of the Directorate, BCR Asigurari VIG
Offering mainly products with medium and low degree of risk insurance coverage, establishing programs of restricted insurance coverage and targeting especially the retail segment of the market, the concern for keeping the existing clients and expanding the relationships with them are the main anti-crisis measures that should be adopted by insurance companies.
XPRIMM: What were the visible effects of the trigger of the financial
crisis on the activity of the company you represent and what do you forsee
to be the impact, on a medium and long term?
Mihail TECAU: The financial crisis had a direct impact on revenues from underwritings,
in particular due to the volume of gross premiums that were written in leasing
companies and in motor insurance, as well as to insurance collateral to banking
business.
XPRIMM: What are the main anti-crisis measures that a Romanian insurance company
must take in order to face both the effects of the crisis and the increasing
competition in the industry?
M. T.: Offering mainly products with medium and low degree of risk insurance
coverage, establishing programs of restricted insurance coverage and targeting
especially the retail segment of the market, the concern for keeping the existing
clients and expanding the relationships with them are the main anti-crisis measures
that should be adopted by insurance companies.
XPRIMM: What was the impact of restricting the credit and leasing activities
upon the volume of new-business and how do you appreciate this indicator will
evolve in the current context?
M. T.: Restricting the credit and leasing activity had the biggest impact upon
the insurance business, especially on the new-business segment, and this is also
as a result of the claims’ increase, due to the returning of the financed
goods, by the users.
We estimate that, until the end of the year, the Government will take necessary
measures to revive the credit/financing business, but the price of motor insurance
will increase, and the volume of income from insurance premiums in the leasing
activity will be below the level of the previous years.
XPRIMM: From the perspective of insurance premiums, what was the effect of
the national currency depreciation upon clients and by what methods have you
compensated or do you intend to compensate this impediment?
M. T.: As most insurance is priced in currency and paid in lei, the depreciation
rate influences negatively the ability to pay of the insured.
To compensate this effect, our company is structuring its offer on insurance
plans, from the lowest price to the best insurance coverage.
| Published on 09.04.2009 |
