Newspaper Insurer Press Issue no 12 (24 June – 15 July 2009) with an accent put on the highlights, hot topics and comments

Newspaper Insurer Press Issue no 12 (24 June – 15 July 2009) with an accent put on the highlights, hot topics and comments

Newspaper Insurer Press Issue n^o 12

(24 June – 15 July 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 start our overview with page 2 with the new EC Regulations, adopting certain accounting standards and published recently on the EC Official Journal. The new regulation entered into force on 15 June this year. It must be noticed that it is indispensible as a whole, and shall be directly applied in all EU member states. Each company shall apply the amendments to IAS 27 and IFRS 3 as from the commencement date of its first financial year starting after 30 June 2009 (for Bulgaria this shall apply as from FY2010).

 

            One of the high-profile events for this year to date is the VIII-th National Conference with international participation, held this June.

The best winning strategy at the moment is to look beyond the crisis. This words have been pronounced by Tzvetanka Krumova, CEO, Armeets Insurance Joint Stock Company, and also admitted by the most of the participants in the National conference with international participation “Insurance and Social Security in the Conditions of the Global Financial and Economic Crisis – solutions for Bulgaria and European Union”, held on 11 and 12 June, 2009, at the building of the Higher School of Insurance and Finance (VUZF). On these two days the representatives of both insurance and social insurance business, of the State Financial Regulator and Scientific Circle, debated the themes which are of great importance for the Bulgarian society. The collection of all delivered reports will be published shortly. True to its principles, the Insurance press newspaper will present once again the real pattern of the forum “as is”.

The conference was opened by Neno Pavlov Prof. Dr. Ec. Sc.– Chair of the Board of Dr. Veleslav Gavriiski Foundation /pages 4,6,8,16/ who has delivered a welcoming speech.

Official guests of the forum were Lalko Dulevski, PhD. – President of the Economic and Social Council of Bulgaria and Atanas Tabov, Chairman, National Bureau of Bulgarian Motor Insurers and winner of the 2008 National Prize for full contribution in the development of the Bulgarian insurance business in 2008. The forum was attended also by Klaus Mühleder and Rumen Yanchev – Chief Executives and members of the Management Board of Bulstrad Vienna Insurance Group, Larissa Orlanuk-Malitskaya, Prof, Dr.Ec.S., Head, Faculty of Insurance Business, Financial Academy under Government of Russian Federation, Prof. Handshke – Head of Insurance Chair at the Economic Academy in Poznan, Poland, Grigorii Vazov, PhD, President of the Higher School of Insurance and Finance, Dr. Mimi Vitkova,MD, Nikola Abadzhiev, Chairman of the Bulgarian Association of Supplementary Pension Security Companies (BASPSC) and Orlin Penev,Chairman, Association of Bulgarian Insurers.

 The themes which were selected for the plenary and section meetings of the conference are more than interesting and I am convinced that they would provoke many debates with regards of the issues which are going along with the Bulgarian insurance and social security, Atanas Tabov stated. He reminded that Russia has been accessed as a full-fledged member of the Council of Bureaux, as from January 2009. This is a big challenge for the Bulgarian insurers and the drivers of MV (motor vehicles) – both for those who are visiting the territory of Russia, and the Russian drivers, who are visiting Bulgaria, Mr. Tabov emphasized.

The first speaker - Garabed Minassyan, PHD, Ec.Sc., from the Economic Institute of the Bulgarian Academy of Sciences – delivered a report with theme „Economic Boom and Recession Management”.

Armeets Insurance Company has been awarded the 2008 prize for Fair Insurer - General Insurance in the night within the frame of the conference and at red-carpet atmosphere./page20/

The Fair Insurer Year’s Award ceremony 2008 was held on 11 June, at Central Hotel Forum. The award was bestowed for second consecutive year by the Bulgarian Association of Insured and Car-accident Casualties (BAZK) and the Higher School of Insurance and Finance (VUZF), who are the initiators for the establishment of this honorary distinction.

The ceremony was attended by dozens of the participants in the prestigious forum, the doyen of the insurance business in the country Luka Dokov Doctor honoris causa of VUZF, guests, friends, journalists.

At the very beginning of the party  Diana Ivanova, PhD, in her capacity of General Secretary of „Dr. Veleslav Gavriiski Foundation, greeted the  attendees on behalf of the sponsors of the conference. Vladimir Todorov, Chair, BAZK, remembered the aim of this competition: to appoint the insurance company, which was the most fair, open and loyal to its clients in 2008, as well as to reflect the trustful and adequate customer assessment of the Customer Care, provided by the insurance companies.

Mr. Todorov informed the attendees that the winner was selected as a result of one and a half month survey, conducted among insurance brokers, agents and clients, who were also able to vote on the website of INSURANCE.BG. The prize-winner selection criteria were: on timely payment of the duly and professionally assessed damages and payment of fair claims in conformity with the term and deadlines, prescribed by the law.

The Financial Supervision Commission Комисията has provided additional information has which helped to determine the „quota of damages” (paid claims-premium income ratio) for the different types of insurances, as well as the data about the received complaints and warnings lodged against the insurance companies in 2008.

There were nominated the following companies: Allianz Bulgaria ZAD, Armeets ZAD, Bulstrad Vienna Insurance Group, ZAD DZI-General Insurance and Insurance Company UNIQA (last year’s winner).

After the procession of the results, conducted with the participation of VUZF students, Armeets was found to have the greatest score. (We are to remember that at the beginning of this year Armeets took a place within the group of the First Five Bulgarian Insurance Companies with premium income of BGN 32,289 million and growth of 21 per cent.)

The prize (honorary diploma and plaquette) was handed to Tzvetanka Krumova, CEO , bay Mr. Todorov and Grigorii Vazov, PhD, Chair of the Board, President and Chancellor of the Higher School of Insurance and Finance and one of the founders of this award.

On pages 6 and 10 you will find the Cover Story „HOW TO PROCURE OURSELVES WITH HASSLE FREE LEISURE ABROAD”. Our advice is „DO NOT START ON A JOURNEY WITHOUT MEDICAL INSURANCE”.

There are plenty of attractive excursions and entertainment, offered by the travel and tourist agencies this season. To our regret, the holiday abroad, even being only for a week, runs risks and can embitter the days of the sufferers. That is why it is wiser for the travelers to purchase the traditional medical insurances. The reason is that the European Health Insurance Card would not replace them at all. The Card has a lot of shortcomings and does not procure full security in a case of accident or disorder, dental treatment or, God forbid!, repatriation of the sufferer.  The medical services are covering only the health package in the relative country. If need be of additional services, the Bulgarians are to pay the extra cost from their pockets. 

The Bulgarian insurers are offering insurance packages called “Medical Insurance and Assistance“ (or only “Medical expenses”) while this assistance is covering the medical expenses for hospitalization or out-of-hospital treatment up to limit pointed in the insurance policy arising from an accident and/or sudden illness. The package is designed for travelers abroad.

On pages 9 and 17 , in the column Document, we reflect the main FSC’s activities, as per their report for 2008.

The leading theme for 2008 which maintained and concentrated the public attention out and out is the financial and economic crisis. In this situation the efforts of FSC, as well as those of the other regulators, are directed to the preservation of the stability of the markets and the confidence of the investors. In its capacity of a unified authority for regulation and supervision of the non-banking financial sector, during 2008 the Financial Supervision Commission continued to pursue a consistent policy reflected in regulatory, licensing, and control activities and its efforts were channeled to active analysis and monitoring of both market situation and market participants.

On page 10 we find the article by Diana Ivanova, PhD, reveling “How did it change the insurance culture phenomenon in Bulgaria?”, continuation from the last issue.  

 On page 11 is the second part (continuation from issue n^o 9)  of the article by Dr. Vassil Vladimirov „The Swiss Rule and the Pensions Update”. The established conclusion is that the pensions update performed until now, is not based on a well-founded and stable grounds, it is not based on fundamental canons of construction, but is determined depending on the political and economic climate.

Meanwhile it was found out that after the enactment of the Social Insurance Code (SIC)  as from 1 January 2000, the pensions update problematic is hovering around the aka Swiss Rule with its two constituent elements: the index of Social Security Income(SSI) and the Consumer Price Index (CPI). But weather the application of this rule in SIC final revision is a successful approach in Bulgaria?

On page 12 we note the first anniversary of Lev Ins Corporate Center. There, in the lobby we have successfully supplemented our information with a blitz-interview with Stefan Sofianski, CEO, Insurance &Re-Insurance Company Lev Ins AD.  Our conversation with the manager of the Corporate Center in Sofia, Mr. Lazar Georgiev, casted more light on the secret of the successful business.

On pages 13 and 14 Rumen Galabinov is presenting EOS Risk Bulgaria EOOD. At present EOS Risk Bulgaria  is fully owned by GrECo International, Vienna, Austria.  The professional broker is Risk Management Consultant of the client, said Mr. Galabinov.

Also on page14 we find the conversation with Petrozar Petkov, Chair of the Board and General Director of Insurance Company Bul Ins AD, on the occasion of his participation in the International Insurance - Reinsurance Forum in Sinaia.

 On page 15 we carry the interview with Jan Lishka, Regional Director for Central and Eastern Europe, AON Benfield. You will find out that Bulgaria was the first country which was offered (through intermediary) by Lloyd’s the Kidnap and Ransom (K&R) insurance. Why did they make this exception and why did they choose Lev Ins AD for their Bulgarian Partner? The interview provides the answers of all these questions. THE MOST BIG COMPANIES IN THE WORLD PROVIDE THEIR EMPLOYEES WITH KIDNAP AND RANSOM INSURANCE, Mr. Lishka said. This way they do take care not only for the people but for the company as well.

You can find more details about the International Motor Show and its insurer on page 21.

We finish our overview with the conversation of Slavimir Genchev with  Alexander Buzhanin, Manager of KD Financial Point. KD Financial Point is duly licensed insurance broker, as from August 2008 , and is part of the leading Slovenian concern KD GROUP.  The Group is managing over EUR 1 billion, which is a Customer Trust indicator.

In conclusion Mr. Buzhanin expressed his thanks to both the colleagues and consultants and finished with the words: „Happy are those who are doomed to win.”

 

Selection: Vania Petrova

Translation: Albena Dimitrova