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Newspaper Insurer Press Issue no 1 (14 28 January 2009) with an accent put on the highlights, hot topics and comments

28 2009 .,zastrahovatel.com
Dear readers, in the overview of issue no 1 of the newspaper Insurer Press we put an accent on the highlights and hot topics news and events. We make you acquainted with the analyses and thoughts expressed by the leading insurers and also keep you informed about all that happened within the period between the last two issues of the newspaper


Newspaper Insurer Press Issue no 1 (14 28 January 2009) with an accent put on the highlights, hot topics and comments


We start our overview with the words of Petar Andassarov Director of the newspaper on the occasion of the 15th Anniversary of the newspaper, which we celebrate in the new 2009 year. (pages 2 and 22). Its mission breathed a life and inspired it during these years. And its mission has been in the basis of its conception to be a biographer of the insurance companies and historiographer of the new, modern Bulgarian insurance                 ;               &nbs p;               &nb sp;               &n bsp;               & nbsp;                                 ;                             ;      


Happy new returns and best wishes to all who celebrate their birthday in the second half of January! Lets wish all lots of love, good health and happiness to our contributors, friends and well-wishers!


Under the regular heading Between two issues on page 2 a place is given to the news from the Financial Supervision Commission (FSC).  At a session, held on 8th January 2009, FSC   adopted at second reading Regulation on Amendments and Supplements to Regulation on the Guarantee Fund. The promulgation of this Regulation in State Gazette is forthcoming.

On the same page you can read that the insurance frauds are still continuing.  This fact has been confirmed by the specific case we are narrating about.

On page 2  you inform you that during the equity increase procedure of ZD Euroins AD Euroins Insurance Group EAD subscribed 1 753 542 shares. Euroins Insurance Group paid out BGN 7 014 168 which is the full issue price of the shares.

On page 3  is the conversation with Rick Jansen, Executive Director, DZI plc insurance company and DZI Total insurance plc. Mr. Jansen shared: DZI came up to the expectations we had at the time of its acquisition. We feel pleased with the work with the local management team and the other employees of the company. Here we learned a lot about the Bulgarian insurance market. And now we would like to conjoin DZI with the best we brought from KBC, in order to improve increasingly the performance of the company. The Bulgarian insurance market is very interesting, and is characteristic with big growth both in the General and Life insurance. I expect that, also in the future, there would be serious potential for d, markedly in the field of life insurance, where I consider the things would take big turns.


On pages 4 and 6 in the regular column Hot Topics, Slavimir Genchev is looking for the answer of the question: Whom the insurers are Santa Claus for?  In 2008, right on the eve of the Christmas and New Year celebration holidays,  the Commission for Protection of Competition (CPC) has taken up and instituted proceedings for suspicion of cartel agreements on the insurance market. In the middle of 2008, by Decision 576/15.07.2008 of CPC, a cold shower stood to a total of BGN 2.45 million in fines imposed on 14 companies. This sanction was grounded on the notorious (agreed, but in the long run even not signed) Memorandum for taking a common stand, taking joint actions, creation of favorable conditions for promotion of the activity of placing the mandatory Motor Third Party Liability Insurance and its performance under the conditions of fair completion that guarantee protection of the interests both of the Bulgarian society and  the Insurance community.

The insurers demonstrated a sharp reaction. The newspaper Insurer press hold an inquiry into this matter and there were inquired such insurers as Rumen Yanchev, Tsvetanka Krumova, Petar Avramov; meanwhile and in the large number of interviews for the newspaper, all the interviewed insurers provided their opinion on this hot topic. From their answers we can take the general conclusion, and to be in the firm belief, that the Bulgarian insurers flatly reject the accusation made by CPC. The insurers unanimously declared that they will appeal against the imposed fines before the Supreme Administrative Court (SAC). The branch was firm and unanimous in its actions to the extent as the Bulgarian Insurers Association (BIA) gave also a notice of appeal, since the meeting regarding this memorandum was initiated by the branch organization itself.  

Through BIA the insurance branch distributed a legal answer-opinion, backed with well-grounded proves that the Memorandum (we are to specify one more time that it was not signed at all) gives no ostensible reason to talk about any cartel agreement between the insurers.  Most probably BIA and the companies would invoke their legal right to appeal the decision of SAC before  a committee of five.  

Page 5 is dedicated to Allianz Bulgaria Holding. Allianz New Europe is keeping its sustainable growth notwithstanding  the hard situation on the market. For the period before the end of September 2008, the company exceeded the EUR 3 billion volume of premium income. In November  2008 Allianz started its direct business in Romania.

On page 6 is the material from the Forum hosted by the World Bank at the Higher School of Insurance and Finance (VUZF) and held under heading: Bulgaria: investment climate assessment.

On 12 December 2008 the Higher School of Insurance and Finance /VUZF/ and the World Bank organized a discussion forum with theme The investment climate in Bulgaria, Systems for Company Management, Accounting and Control. At the forum in VUZF, the World Bank presented for the first time before students and businessmen its latest survey Investment Climate Assessment (ICA) in Bulgaria.

On pages 7 and 8 in the column Seminar, we carry the materials from the seminar with international participation, held on 25 and 26 November in Plovdiv, with theme Republic of Bulgaria member-country of the European Union the challenges of Motor Third Party Liability (MTPL) Insurance issues, and has been organized by the National Bureau of Bulgarian Motor Insurers (NBBMI), the Guarantee Fund (GF) and Bulgarian Insurers Association (BIA).

 The seminar targeted the representatives of the insurance companies, the Finance Supervision Commission (FSC), brokers, companies which are specialized in insurance policies settlement, judges, lawyers,  others. The newspaper Insurer Press has already published the reports delivered by Ralitsa Againe, Deputy Chairperson, Bulgarian Financial Supervision Commission Head of Insurance Supervision Directorate, and by Dancho Danchev, Chairman of the Motor Insurance Commission, BIA, as well as the summaries of the introduction speeches, delivered by the Chair of the Board of BIA Orlin Penev and Atanas Tabov Chairperson of the National Motor Insurers Bureau (NMIB). Yuriy Todorov, Chairman of the Association for Insurance Security (AIS), was one of the more active participants.

In this issue we offer you the extended form of the AISs opinion on some of the discussed themes. 


On pages 9 and 17 you can make acquainted with the activity of Financial Supervision Commission, the insurance and social security companies during 2008.  Under conditions of crisis, the efforts of FSC and of all other regulators, are directed towards the retaining of the market stability and  investors confidence. FSC in its capacity as single authority in Non-Banking Sector Regulation and Supervision. Throughout the  year 2008 FSC have pursued a coherent policy, which was expressed in the Regulatory, Licensing and Control  of the commission, while the efforts were directed towards the active analysis and monitoring of the market situation and market participants.


On page 10 in the column Opinion Stoil Alexandrov Chairman of the Insurance Agents association, is trying to answer the question Whats the price of the insurance premium Motor Vehicle Liability? According to him, the only criterion for determination of fair premium is the weight ratio of the risk for each unit, compared to risk for the totality. Therefore the insurer shall preliminarily investigate, accept, submit for approval, and communicate the risk groups and the characteristics for their determination. There is not any other method for calculation of the premiums, which is acknowledged by the world theory and practice, except the actuary one.

          On page 11 we continue the publication of the material of Slavimir Genchev, headed  The market dictates the prices, but which market?.  On 17 November 2008 at the metropolitan Central Park Hotel, was held one-day seminar   Motor Insurance Pricing science, art or just a business. The lecturer on this seminar was Georgy Matov, Certified Actuary, member of Bulgarian Actuarial Society (BAS). 

On pages 12, 13 and 14 we continue the publication of the materials from the 10th Economic Forum for Southeastern Europe. The second part of the special Insurance panel was dedicated to the hot problems on the insurance market in our region. Right here Mr. Rumen Galabinov  -  Executive Manager of the association Initiative for National Program for Catastrophic Risk Management, presented the new moments in the Program for insurance against catastrophic risks in Southeastern Europe. Yoanna Stephanova entitled this material Challenges before the development of the leader. Some of the main issues, which have found an answer in this material, are: What kind main benefits, offered by the Program to the flats owners and the Small and Medium Enterprises (SME)? Why should my country join this Program? What is the role of the state, compared to private sector?


On pages 15 and 16 in  Forum, we continue the publication are the materials from the  Seventh National Conference with international participation: Social Security and Insurance in Bulgaria under the conditions of eurointegration: challenges before the yet continuing adaptation.  The floor was given first to Ralitsa Againe who drew a general conclusion from the problems and challenges before the Voluntary Health Security system in the context of the European Social model. In her speech Mrs Againe makes identification of the problem, connected with the regulation of the activity, relative to the Voluntary Health Security, and also analyses the enactment of both Voluntary Health Security  and the Insurance. There are outlined the main differences between the regulation and the supervision of the health security and insurance activities in Republic of Bulgaria.

On pages 18 and 19 you can find the short brief in English of issues 23 and 24.

In the column In the world, page 21 Iva Ivanova is narrating that the pension funds are louder in their complaints by the crisis. Pension funds at Pfizer Inc., International Business Machines Corp., United Parcel Service Inc. and dozens of other companies have joined the parade of businesses seeking relief from Congress amid this years economic meltdown. Instead of money, they want legislation to suspend a federal law that would make them pump billions of dollars into retirement plans to offset stock-market losses as many struggle to find enough cash just to stay in business.


We finish our overview with a little bit luxury and gloss, shining from the Eurolifes Christmas congress , held at the luxurious Congress center of the Hungarian capital Budapest. On pages 20 and 24 Slavimir Genchev reflects its holiday atmosphere. The real brilliance is Together on the top.  It was attended by the management, directors, partners and representatives of the local companies of Eurolife in several of the countries in Central and Eastern Europe Bulgaria, Ukraine, Lithuania, Latvia, Romania and Moldova. Michael Richter, General Manager of Eurolife International rendered thanks to all attendants and stated: All of you proved to be one of the best. A natural culmination of the Christmas Congress appeared to be the emotional and thrilling award ceremony of the best employees and directors. There were many prizes, rewards and promotions, which were announced in combination with applauses, sparklers and color lights.


Selection: Vania Petrova

Translation: Albena Dimitrova

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