Newspaper Insurer Press Issue No 8

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 pages 4, 8,14 is the topic of the issue: Compulsory insurance “Professional responsibility of doctors and medical staff.” Ruining claim for doctor’s mistake in the “white countries”… and in Bulgaria - insurance “on paper”.

The latest information, provided by the sociologist Tihomir Bezlov based on inquiry made by the International Health Service and Health Insurance Institute is that for the last 5 years 8,3% of the families have had some incident due to medical mistake(1,6-1,7% per year). Calculated as number of people it is about 200-220 thousand for 5 years, or 40-44 thousand per year. The most severe medical mistakes, causing death are between 1000 and 2000 per year. According to the results 95% of the people considering themselves affected don’t look for responsibility. The ones who look for it in court are between 500 and 1500 per year, 40% of which are for death – i.e.200-600 cases.

On p.6 and 7 in Analysis: insurance and reinsurance the data about the insurance market for 2009 are published. Generally the decline in the insurance business is under 6% and is lower than expected.

Gross premium income for 2009, realized by the insurers registered in the Republic of Bulgaria, amounts to 1 681 491 thousand BGN, as decrease of 5,9% is noticed on yearly base, The Commission for Financial Supervision announced. The above premium income does not include the realized during the year premium income by AIG Bulgaria IC”PLC, because at the end of 2009 the company was transformed by means of merging into the sole owner of its capital – “Chartis Europe” S.A.C. In the Evaluation of the different criteria aiming at comparability of information, the data for “AIG Bulgaria Insurance Company” PLC are excluded both for 2009 and 2008. The gross premium income, realized by the companies for general insurance towards the end of 2009 amounts to 1 459 064 thousand BGN, with which a decline of 3,8% on yearly base is realized.

On the general insurance market the biggest part is taken by the automobile insurances – “Autocasko”(41,4%) and “Civil liability, related to the possession and use of motor vehicles”(30,2%) – total 71,6% of the gross premium income, realized in the sector.

The first place is taken by “Bulstrad Vienna Insurance Group” IPLC with 209 489 892 BGN premium revenue on direct general insurance and market share of 14,6%.

The gross premium income realized by the life insurers to the end of 2009, amounts to 222 427 thousand BGN, which marks a decrease of 17,7% on yearly base.

First remains ZAD “Alliance Bulgaria Life” with premium income of 49 208 806 BGN and market share of 21,9%.

On p. 9 and 14 we tell about

IC “Bul ins”AD – 15 years Bulgarian business success, tradition and security. The company remains the leader in automobile insurance in spite of the negative tendencies for 2009.

Its aim is to reach its positions in the rankings, occupied in 2007 and 2008.

With a press conference and a meeting with journalists from leading media started the events with which “Bul Ins” insurance company will celebrate its 15^th anniversary. In the press conference, held on April 15 2010 in “Crystal Palace” hotel in Sofia the head management of the company took part. Associate professor Prodanov, executive manager and vice- chairman of the Board of Directors emphasized that the company has a very fair policy, concerning the premium revenues and registers everything which comes into the fund. The company is a proved loyal and safe partner with modern concept for expansion and development of the insurance products.

On p. 10 in Analysis: Additional pension security -there are the data of the pension security center, which has a positive total net financial result for 2009.

The accumulated net assets in the system for additional pension security towards 31.12.2009 amount to 3 156 170 thousand BGN and grew by 37,28% compared to the net assets towards 31.12.2008. The growth of net assets of the pension funds is due to the increased gross income of insurance fees as well as to the achieved positive returns from the management of the assets of the pension funds during 2009.

On p.12 and 24 the eight anniversary of the Bulgarian National Bureau of Motor Insurers is noted. BNBMI is a well established institution, which respects all the rules, contracts, agreements and perspectives in motor insurance.

The talk with Atanas Tabov can be read on these pages

After accepting Bulgaria as a full member of EU on Jan 1 2007 quite a lot of new moments in the activity of BNBMI have taken place. The responsibilities of the Bureau have increased as a guarantee institution and as an authority for compensation payment to the victims of motor accidents.

Still that year BNBMI became a party to the Multilateral Guarantee agreement which came into effect on 01.08.2007. The new functions fulfilled by BNBMI as a compensation authority are the removal of the “green cards” and reconfirmation of validity by registration plate number only, guarantees for the uninsured cars etc. Mr. Tabov said:” As you understand, for a very short time BNBMI had to change thoroughly its structure and activity, but I dare say that we have coped successfully and we are not only “with our both feet” full members, but we are already a well- established institution which complies with all rules established by the Council offices, carries out the signed contracts and agreements and implements the directives adopted by the European Commission concerning car insurance. " 

On p.13  VIG centers are presented serving policyholders in ZAD “Bulstrad Vienna Insurance Group” PLC, and in IC “Bulgarian properties” AD. The article is given the meaningful heading “Memories from the future”.

As it was written in the last issue of our “Insurer Press” newspaper the 6^th in order VIG center, in Gorubliane city quarter of Sofia was presented to insurance agents on April 8 2010. After the official introductory words of Rumen Ianchev – chairman of the MB and executive director of ZAD “Bulstrad Vienna Insurance Group” and of IC “Bulgarian Properties” AD, the microphone was given to his deputy Ivan Ivanov, who explained in a detailed way the concept of the new VIG centers. The three key elements in it were convenience, quality and loyalty.

On p. 20 is the “First interview” with Ognian Jordanov, executive director of “Grupama Insurance” and “Grupama Lifeinsurance”.

The shareholders have set clear goals in long-term aspect and I as a leader together with the team of the two companies make efforts to achieve them. So far for the period since my taking office I believe I have gained some knowledge of the companies and the people there. We’ve been following the plan for development and we’ve taken particular actions. We expect their impact in the short and medium term. We continue cooperation with DSK Bank and develop new products.”

The direction of development is to stabilize the companies and consolidate them as preferred insurers in Bulgaria.              &n bsp;               & nbsp;                      

On p. 15 under "Insurance Portfolio" Gergana Ivanova, the author gives advice how to make our trip an enjoyable one. Tourism is a huge source of revenue for many countries in the world. Against the background of the serious financial-economic crisis in the  world, including our country, tourism is for the time being one of the most resistant sectors to crisis situations. The crisis has not disastrously affected the branch, as the experts expectations were. According to the data of the World Tourist Organization the revenues in the sector have decreased with only just 8%. The countries with the biggest revenues from tourism are Austria with $ 21,8 billion, Turkey with $22 bln., Australia with $24,7 bln., Great Britain with $36 bln., Germany with $40 bln., China -$40, 8 bln., Italy - $45,7 bln., Spain $61,6 bln., USA – $110,1 billion dollars. And where are we? According to preliminary data the total income for our country from tourism for 2009 amount approximately to 2,5 billion euro, i.e. the same as for 2008. This sum does not include the income from the holidays of Bulgarians at our resorts and from their excursions abroad, which according to preliminary forecasted calculation amount to nearly 500 million euro.

Under European regulations Bulgarian citizens who are health insured and have continued rights under the Health Insurance Act, when visiting EU countries they have the opportunity to use emergency medical assistance, the expenses for which are covered by The National Health Insurance Fund. For that purpose it is necessary the health insured person to have been issued a health insurance card. Nevertheless the health insurance card does not replace the insurance “Assistance during travels abroad”. In comparison with the European health card the insurance offers much larger scope of coverage for the expenses made for treatment, including besides the charges for medical examination, tests and hospital treatment, also the expenses for transport from the place of the accident /illness/ to the nearest hospital, expenses for medicines and supplies for external treatment as well as for repatriation. Beside all this, the health card is valid only in the public and municipal hospitals, whereas the insurance covers the assistance in private medical institutions as well. We should not ignore another fact – at travels in Turkey, Macedonia or any other country outside EU, the health card is not valid, the National Health Insurance Fund cannot intervene and the medical insurance remains the only alternative.

To the Same problem page 22 is dedicated as well, where the meeting with journalists at the central office of IC “UNICA”AD was held on April 21 this year on the issue “DOES THE EUROPEAN HEALTH CARD REMAIN COMPULSORY at travels in Europe and can it replace the risky insurance “Life” with medical expenses abroad?”

At the presentation the lecturer eng. Plamen Filipov, manager of the “Short term Life Insurance” Department explained the differences between the European health insurance card and the “Life” risk insurance with medical expenses for abroad.

The idea of the management of IC “UNICA”AD is to present and discuss with the company experts and media journalists at regular routine meetings topical issues from the insurance branch, which are interesting and helpful for a maximum wide circle of Bulgarian citizens. The future meetings will be attended by experts, great authorities in the particular field.