Newspaper Insurer Press Issue No 3

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 or name-day.

Many happy returns!

On page 2 is the editorial article “After the beginning of 2010 the tendency of decrease of the income is overwhelmed“.

Neno Pavlov PhD in economics, a vice president of Financial Supervision Commission (FSC) and Governor of Insurance Supervision Department, set a minimum annual return of minus 10.52% in asset management of universal pension funds for the period from December 28, 2007 to December 30, 2009.

For occupational pension funds (PPF) for the same period a certain minimum return on an annual basis at a rate of minus 12.09%.

The weighted average yield on Universal Pension Fund for the same period, annualized, was minus 7.52%, respectively, and for the PPF is minus 9.09%. All funds for supplementary pension insurance have achieved profitability, whose size is above a minimum level of profitability for the type of funds.

On the same page is the usual article “Between 2 editions” we learn last news from FSC concerning:

·        Released decisions about the entry in in the register of insurance brokers

·        Successfully passed the qualification examination for an insurance broker - sole trader, held on January 16, 2010;

·        Updated lists of insurers and insurance brokers of EU member states, notified the FSC that they wish to operate in the territory of Bulgaria.

On page 2 we make you get acquainted with the situation going in the insurance companies:

·        “Lev Ins” AD  start a project about qualification and training of employed persons. The project is realized with the financial help of  “Human Resources Development Program” 2007-2013, co-financed by the European Social Fund.

·        BEHIND Victoria offers an Insurance – “Professional Liability of independent evaluators”.

·        High attestation for BEHIND Armeec as CIOR and SOSZR authoritative military insurer. Insurance security of the athletes, involved in training and competitions in sports with military applications (MILKOMP) was entrusted to BEHIND Armeec.

On page 2 and 7 in article “Forthcoming” we announce the organized from FSC seminar:” Market Abuse”- the interaction between the supervisory authorities, the media and public companies".It will be held on 26.02.2010, Anel Hotel, Sofia. The workshop is organized under the BG/07/IB/EC/02 twinning project between the Financial Supervisory Commission and the Ministry of Economy and Finance of the Republic of Italy. One of the goals of the project is informing the public of different groups for the development of European practices in the financial sector.

On page 6 and 7 in the usual article we comment on the data for the insurance market and the market for voluntary health insurance for the period January-November 2009.Data is from the Financial Supervision Commission.

The recorded in general insurance premiums (including premiums for reinsurance to insurers, who carry out such activities) amounted to 1 285 722 thousand BGN and in life insurance - at a rate of 196 748 thousand BGN.Compared to the same period the previous year decreased by 1.5% in general insurance and a decrease of 18.5% in life insurance or general insurance sector to report a decline of 4.2 percent.

The largest share of the aggregate portfolio of companies operating in general insurance, continue to hold motor insurance "CASCO" (42.9 percent) and civil liability related to the possession and use of motor vehicles (27.4%) or 70.3% of total premium income realized in the sector.

On the first place is “Vienna Insurance Group Plc” with a premium income of

189 378 623 thousand BGN and market share of 14,7%.

On the second place is “DZI - General Insurance – AD”with a premium income of 182 350 130 thousand BGN and market share of 14,2%.

On the third place is ZK "LEV INS with a premium income of 138 453 876 thousand BGN and a market share of 10,8%.

The largest relative share in premium income realized in the insurance sector at the end of November 2009, continues to hold life insurance and annuity. Proceeds realized by such insurance amounted to 146 760 thousand BGN and formed 74.6 % of premium income generated in the sector.

On the first place “Allianz Bulgaria Life AD” with a premium income of 43 680 601 thousand BGN and 22,2 % market share. Realized for the period January-November 2009 premium income in the voluntary health insurance amounted to 35 366 thousand BGN, which recorded growth of 29.9% on an annual basis.

On pages 8 and 10 is the interview of Slavimir Genchev with Emil Atanasov, Deputy Chairman and Governor Insurance Supervision.He shared his expectations for positive results in 2009. The main points in the conversation are:

·        Till the present moment there is no specific initiatives for establishing a methodology for non-pecuniary damages;

·        There is a possibility for the restructuring of Bulgarian insurance market;

·        The matter for extra fees for drivers without valid civil liability insurance;

·        In sector road police are conduct the latest tests of information system for traffic incidents.

On pages 9 and 10 we find the „Theme to be continued…” in which Ilyana Stoyanova pose the question: “Can the weak health system manage the second pillar of health funding”

Conference: “Health insurance in Bulgaria - current state and perspectives " was organized in Sofia on January 26, 2010 this year by PR Agency Business Expert Group and Insurance information portal (www.insurance.bg).

One of the official guest who opened the event was Dr. Lachezar Ivanov, Deputy Chairman of National Assembly and Chairman of the Parliamentary Health Committee; Dr. Nelly Nesheva Secretary of Ministry of Health, Peter  Chobanov - Chairman of the Financial Supervision Commission, Prof. Tsekomir Vodenicharov - national consultant in public health and health management.

The main goal of the initiative is to hold a public debate on the topic of the best health insurance model that country have to implement that may help to identify the main problems in the health field and for clarification of views between government, trade and professional organizations to find a consensus on main directions for change and development of the system.

With the help of Bulgarian and international speakers will discuss issues of health insurance in Bulgaria, foreign experience with the achievements and mistakes of other countries, the optimal model for our country, financial reform and measurable effects, which are expected to bring a change of model. Some of Bulgarian lecturers were: Emil Atanasov -Deputy Chairperson of the FSC and Governor of the department “Insurance Supervision”; Dr. Mimi Vitkova, chairman of the Association of licensed companies for voluntary health insurance, Plamen Minkov, executive director of HIC health Bulgaria AD;

Ognyan Donev, CEO of Sopharma; Georgi Angelov, senior economist at the Open Society Institute – Sofia; Prof. Lyubomir Ivanov.

Dr. Anemik Heyer, Achmea Health presented to the audience one of the most successful health insurance models – Dutch one; Diana Ognianova, Department of Health Management, Technical University Berlin which present the German model.

On the event there were also representatives from the Bulgarian Doctors Union,

National Association of Employers of health care in the Republic of Bulgaria; The bodies of trade unions in the health service, business representatives and journalists.

On pages 13 and 17  is the conversation with Dancho Danchev Chairman of the Board and Chief Executive Officer of Insurance company “Victoria” will consider a growth of about 5-7%, which is due to general insurance. On Civil Liability the company looses about 40% of the clients and the same happened to other companies.

To the question about introduce a unified national computer information system, this necessary data base of Traffic police and Guarantee Fund, Mr. Danchev answered: “In this way we will achieve formalization of this insurance (civil liability insurance).By this system we will issue only electronic bills, this way minimizing the frauds. The basic in this point is that, persons which do not have the necessary knowledge to be unable to issue such bills. After this point we can start a more profound development of the process for construction of so called “bonus-malus” system ,which can make the exchange of data between the companies possible…We continue to work with our unique style and with people who pursue it unyieldingly.

On pages 16 and 20 in “Forum” wew continue to publish the materials about VIII National Conference with international participation "insurance and security in a global financial and economic crisis - solutions for Bulgaria and the European Union”, which was held on June 12, 2009 in в сградата на Висшето училище по застраховане и финанси (ВУЗФ) VIII национална конференция с международно участие „Застраховането и осигуряването в условията на глобална финансова и икономическа криза – решения за България и Европейския съюз”.the building of the Higher School of Insurance and Finance (VUZF). Two days representatives of the insurance business and insurance, the state financial supervision and academics debated important for the whole Bulgarian society topics. True to tradition, the newspaper Insurer Press again will present you with this entire forum, as it was. Here is the report: “The controlling of insurance results in case of economic crisis situation” by Mina Kirova.

We will finish with emotional story of Petar Andasarov named «Многая лета” for Ani and Mitko.

“I was very surprised when the groom Dimitur Zagorchin, a sunny boy, sincerely tell me that he wants insurers newspaper Insurer Press to preserve this beautiful moment of his life, because this is the newspaper of his colleagues and he truly respect and love it. The most exciting was the moment when Mitko lifts the bride in his arms and I am pretty sure that in their thoughts they were like two birds lifted to the heights of life. And this is my wish to them – to have a neverending flight and to spread their wings with happiness.