Newspaper Insurer Press Issue no 8 (29 April – 13 May 2009) with an accent put on the highlights, hot topics and comments

Newspaper Insurer Press Issue no 8 (29 April – 13 May 2009) with an accent put on the highlights, hot topics and comments

Newspaper Insurer Press Issue n^o8

 (29 April – 13 May 2009) with an accent put on the highlights, hot topics and comments

 

Dear readers, in the overview 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.

We offer our best wishes to our contributors, friends and well-wishers who celebrate their birthday in this period!

Happy new returns and all the best!

 

We start our overview with the latest news from the insurance companies /page 2/:

 

·               &nbs p;     Armeets managed to retain its credit rating. As a matter of fact this assessment is due to the positive trend of growth in company’s development.

·               &nbs p;     Insurance Company (IC) Euroins AD reported 23.7% growth in premium income.

According to the audited annual report, the FY2008 premium income of the company ran up to BGN 82.35 million. The company marked growth of 23.7% compared to FY2007.

·               &nbs p;     Generali Group with profit of EUR 861 million for FY2008.

The general annual Meeting of Shareholders of the Group was hold on 24 April 2009 in the Italian city of Trieste. During the ordinary session, the Shareholders' Meeting: approved the financial statements of Generali Group for FY2008, which closed with a premium income of EUR69 billion and profit of EUR 861 million. Compared to 2007 the premium income has raised by 3,9%. The drop of the profit (as from EUR2.92 billion in FY 2007) is due to the global financial crisis which started last year. The dramatic fall, suffered by the financial markets, costs the company EUR5 billion, however, and despite this decrease, Generali reported being on profit.

• FSC announced the liquidation of the Irish insurance company Hugo Insurance Lines Limited.

 

On page 3 Veselin Tonev, Director, Life-insurance Products, DZI Joint Stock Insurance Company (JSIC), give some details about the insurance “DZI Life + (Tariff 26)”, whom it was designed for, its features and main coverages. DZI Life + is still a leader on the life insurance market.

On pages 4 and 6 we carry the Cover story of this issue – Gergana Ivanova, Manager of the insurance broker Finsales EOOD, inventively entitled her material with the witticism „You will know them by the management”. The grounds for payment or denial of payment of insurance indemnity, as well as the amount of this indemnity and the grounds for recourse claim against third parties, are established during the Claims Management process. The result starts the procedure for payment of denial of payment of the indemnity, as well as the realization of the insurer’s right to regress. In order to be paid indemnity you must have valid insurance policy. The damaged property must be covered by the insurance policy. You must have paid the agreed premium. The insurance event must have occurred during the validity period of the insurance policy and must be under the agreed risk, which is being covered by the policy.

On page 5 you will read that the Euromoney magazine has announced the results of its annual Insurance Survey. The nomination “Best Insurer in Central and Eastern Europe in 2009” was won by the Allianz Group. The company won prizes in four more categories.

From the same page you will learn that „Allianz Bank Bulgaria” is an integrated system for credit deal approval, and why Mickey Rourke is one of the most risky actors for 2009.

 

Page 7 is dedicated to Bulstrad. The publication by Petar Andasarov has the heading „Bulstrad: with new name, increased capital and stronger positions”.

Everything that was in store together with the change of the ownership became a real fact. The General Meeting of Shareholders held on 15 April, adopted the decision for change of the name the company from Joint Stock Insurance Company (JSIC) Bulstrad to Bulstrad Vienna Insurance Group. The second decision of the shareholders approved the increase of the capital by approximately BGN1.6 million. This way, by the issuance of new shares, the company’s capital will reach BGN21.535 million. On this occasion Rumen Yanchev, Chair of the Board and CEO, JSIC Bulstrad gave a special interview for Insurance Press.  There Mr. Yanchev emphasized -„ Certainly, there are many advantages of being a part of a big group.  At least because such a big group as VIG with extended experience in many countries, has many “know-how”, extensive knowledge and practices, and a part thereof – according to market’s particularities – may have an application in Bulgaria. This is, in my opinion, our prime advantage.”

On pages 10 and 15 we carry the continuation from issue n^o7 of the material of  Ileana Stoyanova „The companies of Vienna Insurance Group in Bulgaria reported their results for FY 2008”. At the meeting with leading financial and business media, held on 2 April this year, at Sheraton Hotel, Insurance Joint Stock Company (IJSCo) BULSTRAD, IC BULGARSKI IMOTI (Bulgarian Properties), IJSCo BULSTRAD – LIFE and Health Insurance Company BULSTRAD HEALTH, reported their preliminary financial results for the past FY 2008, as well as their plans and expectations for FY 2009.  The business breakfast was hosted by the executive directors of the companies - Rumen Yanchev, Chair of the Board and CEO of both IJSCo Bulstrad and of IC Bulgarski Imoti; D-r Klaus Mülleder, CEO and Member of the Management Board and CEO of IJSCo Bulstrad and of IC Bulgarski Imoti; Svetla Nestorova and CEO of IC Bulgarski Imoti Life; Nikolay Mishkalov, CEO of Health Insurance Company Bulstrad Health and Todor Iliev, Financial Director of IJSCo Bulstrad.

Here we are giving more details about the activity of IC Bulgarski Imoti AD;  IJSCo  Bulstrad Life ,  IC Bulgarski Imoti Life; HIC Bulstrad Health.

On pages 11 and 21, in the column Hot Topics, Prof. Hristo Draganov, Doctor Economic Science, is explaining the essence of “Bonus-Malus”system. What is the effect from the implementation of this system?

First. The calculation of the insurance premium takes into account the subjective risk.

Second. The system “Bonus-Malus” makes cheaper the insurance for those insured who have never reported any insurance event (Road Traffic Accident – RTA) before the insurer. This has a positive impact in case of an occurred RDA. The insurance is going down also due to the fact that the little, negligible accidents are not reported, while their share is a big percent.

Third. The introduction of this system decreases the outgoing insurance expenses through the decrease of damages assessment expenses in case of RDA event.

On page 12 we publish the conversation with Grigorii Vazov, Chair of the Board and Dean of the Higher school of insurance and finance (VUZF). Mr. Vazov shared that the financial crisis requires new investments and new educational technologies. That is what has been doing VUZF . The realization of the VUZF graduates are almost 90 per cent and this fact boosts the image of the school. The people keep investing in their education. VUZF is at very high level with regards of the “three whales” as Mr. Vazov worded the quality of the lecturers, the quality of the students and graduates with regards of their qualification and competence, and the quality of the necessary equipment.

In his opinion „That, which is observed now is that the banking, insurance and social insurance system is that behind the top management we medium level management which is far behind the current trends of competence. I attribute this circumstance to the educational system. That’s why our strategy is as follows: in VUZF we are getting prepared the future, real, serious top management for the structures of the banking and non-banking financial sector.”

Mr. Vazov narrated also for the mutual educational program with the University of Maryland, the precious experience of this university, the contacts with the business and the extensive know-how of VUZF – dome of its lecturers are managers of big financial institutions and structures. During the conversation it was found out that VUZF, in cooperation with the newspaper Insurance Press will put the start of a labor exchange. The newspaper will „give the floor”, will offer its pages to the best students.

 

On page 13. in the column Look back, look forth, we carry the interview with Lubomir Modev, Manager of the Insurance Broker AMARANT BULGARIA. Mr. Moved let us hear the good news about the successful closure of the FY 2008. The results, the company reported before FSC, read a turnover growth by 100%. The officers improved their professionalism and took part in the project, awarded to AMARANT on European program, funded by European Solidarity Fund (ESF).

The results, which have been achieved the last year, have also created preconditions for one better and more successful FY 2009.

„We have always been guided by the maxim „Work dedicatedly for the name of your company and later it will work back for you!”- Lubomir Modev shared.

He also answered questions about the relationships with the clients, the benefit from the insurance broker, the improved insurance culture, about the new offices, opened by the broker, about the professionalism of the brokers, which is boosting and strengthening the beautiful company name„Amarant”.

 

In the same column /page 18/ we are talking with Alexander Lichev – Cahir of the Board and CEO of Municipal Insurance Company. Mr. Lichev shared that after the closure of the privatization procedure, the company is operating in calm and successful manner; the strategic goals, measures and means have already been clearly defined, both in the short and the long run. Within the frames of two years, and besides the investments in the material and technical base and information system, there have been adopted completely new policies for management of sales and resources, the Clients Relationships, and Human Resources. The new owner adopted the changes and there is a good continuity. The company has closed the FY with a profit of BGN 414 thousand, which is about 3.5 times more, compared to FY2007.

Alexander Lichev expressed his opinion on the issues regarding the condition of the Bulgarian Insurance Market, the Motor Third Party Liability (MTPL) insurance, the bilateral findings (protocols)the global financial crisis and its impact on the insurance market, etc.

 

We are finishing our overview with the first interview, given by Petar Minchev, Manager, Marsh Bulgaria EOOD. Mr. Minchev said that Marsh is both world leader and leader on the Bulgarian market. The company is providing services to more than 300 corporative clients in all areas of the insurance business and risk management, which guarantees a unique experience. The company is providing consulting services in variety of areas of the economic life both by use of the standard practice for risk precaution measures in their branch, but also offers to make insurance program “a la carte” which is tailored to the specific needs, risk profile and goals of the particular organization.

Petar Minchev answered the question „Which is the best lesson in the insurance?” by „to be honest and to respect promises”. About the condition of the insurance market he shared that the brokerage company has established the good reputation of precious helpmate, but at the same time it is seriously different, compared to the so called „developed markets”, where the broker is expected to develop a comprehensive concept for risk management. Here is the power of MARSH – the company offers to its clients solutions that will make their business more stable and successful, instead of helping them just to purchase some of the ready-made products, being offered on the insurance market.”

 

Selection: Vania Petrova

Translation: Albena Dimitrova