3. Romania – Political & Economical news
3
World Bank to provide Romania EUR 400 mil before year-end; the money comes with some conditions :
progress in implementation of reforms in health, energy and transport.
Boards of Directors of EFG Eurobank and Alpha Bank approved the merger of the two banks, which will
form the largest credit institution in Greece and Southeastern Europe. As a consequence, the New York
Stock Market closed on Monday with a 2% growth, encouraging investors in spite of the European debt
crisis.
Romania’s GDP rose in Q2 by 0.2% from the previous quarter, in adjusted series. Year-on-year, the GDP
gained 1.4% in gross series and 0.3% in adjusted series. GDP is likely to grow by 3.9% in 2012 and by
4.5% in 2013, largely fueled by domestic consumption.
Industrial production slows down in June to +1.8% y-o-y from +8% in the previous month, according to
Eurostat.
The general consolidated budget recorded in the first seven months represents 2.09% of GDP.
• Fitch revises Romania’s credit rating up one notch to investment grade (BBB-);
• Ministry of Finance publishes fiscal strategy for 2012-2014; Fiscal council deems plan realistic, but vague.
• Romania is looking to China for investors in several projects, including the construction of two nuclear
reactors, new coal facilities for thermal power producer Termoelectrica, and a new subway line. The
Romanian delegation included also a member of Uniqa Asigurari.
Source Eurostat, NBR, NIS ,Ministry of Finance
4. Overlook on insurance market
General insurance
4
Indemnities paid by nonlife insurers
= Ron 2.1 billion
Source UNSAR, ISC, Data
reported by companies
Astra, 551.31
Allianz-Tiriac,
410.2
Asirom, 324.39
Groupama,
320.58
BCR Asig,
231.56
Omniasig,
433.13
Generali,
154.96
-20
-10
0
10
20
30
40
-4.09
-17.33
37.29
-12.93
-2.2
-10.5
-18.04
GWP Evolution of main players
H1 2011 vs H1 2010
5. Overlook on insurance market
Life Insurance
5
Indemnities paid by life insurers = Ron 339 mio (+ 4.52% vs. H1 2010)
Source UNSAR, ISC
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
ING BCR
Viata
Allianz
Tiriac
Generali Asirom Aviva AXA LI
-0.63
8.53 8
0.67
-5.28
-11.59
-0.89
GWP Evolution of main players
H1 2011 vs H1 2010
ING, 272.7
BCR Viata,
167.02
Allianz Tiriac,
50.6
Generali, 45.62
Asirom, 44.23
Aviva, 34 Axa LI, 11.06
6. Health insurance market evolution
• The private health insurance market in Romania registered, for the first
6 months, a 15% increase, reaching 15 million RON, comparing to 12
million RON in S1 2010
• According to the forecasts, the life insurance market will not increase in
2011 with more than 3-5%, while the life health insurance market could
reach a maximum increase of 15%
6
8. Q1 Q2 Q3 Q4
Active Projects Updated
8
Scale
L
M
S
Large > 100k EUR
Med 50k - 100k EUR
Small 0-50k EUR
Status
R
A
G
Red
Amber
Green
Priority
high
H Hold
MED
LOW
Impact
H
M
L
Review all letters and forms sent to the clients11
Orphan Customers4 R highSH
Customer Contact Detail5 GS highH
GM highH
Review proposed payment to limit cash collection16 R highMH
Commission Scheme20b G highSH
Open New Agencies L21 G highH
Core System Implementation L24 GH
Outstanding and GWP26 highSH R
New Rider added to
existing portfolio
27 MEDGSL
high
Bancassurance Product28
highGSH
9. Q1 Q2 Q3 Q4
Active Projects Updated
9
Scale
L
M
S
Large > 100k EUR
Med 50k - 100k EUR
Small 0-50k EUR
Status
R
A
G
Red
Amber
Green
Priority
high
H Hold
MED
LOW
UL Product29
Individual Health Product31
Impact
H
M
L
CSA Certification32
BCP33
Term Risc +30
highGSH
highGSH
highGSH
highGMH
highG
SH
Group Product highSH34 H
10. Q1 Q2 Q3 Q4
Closure /Postponed Projects Updated 10
Scale
L
M
S
Large > 100k EUR
Med 50k - 100k EUR
Small 0-50k EUR
Status
R
A
G
Red
Amber
Green
Priority
high
H Hold
MED
LOW
Impact
H
M
L
Clean Portffolio Payment History3 R highSH
Implement
Contact Center
16
highLH A
Managment Activities
20 a highSH
A
SAP Migration23 H GL high
Decrease Frequency
of Payment
6
Implement retention plan
for existing portfolio
12
Implement a digital
Repository of documents18
Implement Mass Printing19
Relocation the Company1
H
H
H
H
H
Product development22 H GL high
12. Principles
• “Fixed” Commission + Acquisition Commission &
Bonuses &Override
12
68% x GWP for Main Cover
Current Commission Scheme do not accommodate current business model –(
ex. Missing Claw Back )
