Could FIAR be considered a successful product? The answer can only be a positive one. The statistics are here to prove it: more participants every time, representing an increasing number of companies, which become more and more relevant, from more numerous countries (and even continents). The agenda is also here to show this: it is denser by the year. Friends prove it as well, and for an event such as FIAR, with an extremely personal mark on the relation guests-host, long-term friendships testify to this. Here you have testimonials from our most loyal participants:
FIAR evolved, over a short period of time, from a local event, relatively small in size, to a meeting that now requires the attention of all relevant stakeholders from the specialized markets in the region, exposing the considerable growth and the substantial potential of the entire area. Anyone who, even for just a short while, was involved in business in CEE countries is aware of the current progress and growth perspectives. Thus, FIAR proved to be a strong information dissemination factor and played an important role in promoting the Central and Eastern European markets. Simon FOREMAN, Director, Central & Eastern Europe, Aon Limited
Although I am sure that constantly keeping up with the international market trends and standing up among various similar events in the Balkan region is not easy, a wider participation of the reinsurer community to FIAR is a clear evidence for the success in organizing this event.
The reasons that bring us back to FIAR every year are at least two in number:
• The time of the event: it is the first post-renewal meeting in the Balkan region and the best moment to review last season’s conclusions and prepare for the next one;
• The participants: this event managed to maintain its Romanian roots, while considerably expanding its influence throughout the Balkan, Russian and CIS countries and even in certain countries in the Middle East. Thierry PELGRIN, Specialty Manager, Everest Advisors, Great Britain
FIAR represents already a major benchmark in the reinsurance business and a mandatory item on the agenda of all players in the CEE markets. Wolfgang AMIRAS, Vice President, AXIS Re, Switzerland
I believe that in the next 5 years FIAR is going to become as important as the reunions in Baden-Baden or Monte Carlo with regard to the insurance-reinsurance markets from Central and Eastern Europe. The participation in FIAR is essential for all business people or those who want to start on these markets. Mr. Alain BEURRIER, Managing Director, ABAS Conseil, France
Alexandru CHIRIACESCU, Reinsurance Director, BCR Asigurari: This Forum represents a unique event in Central and Eastern Europe as it gives insurers and reinsurers the chance to interact in a relaxed context, outside the alert competition environment, and this can only be beneficial for both parties. In addition, the authorities’ support and their active presence strengthen the official character, revealing at the same time the openness and the availability for dialogue in order to consolidate the relations between insurers and supervisory bodies.
What do newcomers have to say?
As a newcomer at FIAR, I found this as a very useful and pleasant experience. For me, FIAR was the confirmation that professionalism, accompanied by smiles and quality, is feasible in Romanian as well. Daniela FLOREA, Chief Executive Officer, Geo Strategies-Experian
I can say, with no trace of doubt, that in my career of 30 years, FIAR proved to be the best organized event I ever attended.Kevin CUMMINS, QBE Re Europe
News 2007
There is nothing new in the fact that each FIAR edition brings about some ... news. New topics, new organization facilities... The 2007 edition brought, mainly, a local TV station, XPRIMM TV. Live broadcasting, interviews, summary of previous days were shown on TV terminals installed in all event’s locations and were also available online. The broadcasted interviews are relevant for the general opinion regarding the development of the Romanian insurance market. Here are some opinions:
Tudor BALTA, Vice-President, ISC Board: In 2-year time, the Romanian insurance companies will be perfectly fit to cope with any competition, either on our market, or in other emerging markets.
Aurelia CRISTEA, Member of the ISC Board: The trend for the next years is also an ascending one. Beginning with the 1st of January 2007, 60 brokers and over 70 insurance companies notified the ISC with regard to their intention of operating in Romania. We do not have a direct contact with them, because we do not supervise them, but we can feel the pulse, we see the collaboration relations developing between the domestic and international players. The invasion shall result in a higher quality and competitiveness.
Mihai SEITAN, Partnerships Director, FINCOP Broker de Asigurare: The insurance market keeps a steady growth rate, even if not as rapid as we wanted. We barely reached a 2% penetration rate, which is little compared to developed markets, but proves the great potential, and companies strive to develop tools and train people, attract customers, even more so as the market becomes more interesting because of a steady economic growth, which reflects also in higher salaries and other investments that need to be protected.
Cristian CONSTANTINESCU, President of UNSAR: It is clear that we need some help, some lobby. There is a totally unexpected trend on the Romanian market, namely on the life insurance market. This is the insurance line that entered last in Romania and started from zero. Under such conditions, it would have been normal to see a more obvious growth, compared to non-life insurance. Or, statistically speaking, their weight stays at around 20%, and in 2006 they had the lowest percentage in the last 5 years. Unfortunately, it is not normal to look at what happens, fiscally, with life insurance, in Great Britain, France, the Netherlands and consider their development level, but to look at how they got at that level. These markets started with 100% deductibility, regardless of the contribution level. In time, this deductibility decreased. It’s also true that in Great Britain there are no fiscal facilities any more, but nobody is going to terminate a policy after having paid for it for 10-20 years.
Radu MUSTATEA, General Manager, ASTRA-UNIQA: The accession affected each and every insurance company through the norms issued for the harmonization of the legislation to the European requirements. All this shall trigger major changes in the management structure and organization of insurance companies.
Antonio SOUVANNASOUCK, Managing Partner, ASIGEST: The Romanian brokerage market not only develops, but it is more and more appreciated. Insurance brokerage represents the development engine for the insurance market, shown also in the intermediation percentage that brokers have on the whole insurance market.
There are, for sure, insurers who want to go on the market with niche products, a beneficial move for the Romanian insurance market that, in my opinion, is lacking in product complexity and diversity.
There are, for sure, insurers who want to go on the market with niche products, a beneficial move for the Romanian insurance market that, in my opinion, is lacking in product complexity and diversity.
Business and more business
For most participants, especially for those involved mainly in reinsurance, FIAR represents first and foremost a long series of business meetings with various partners. The execution of current contracts is thus assessed, than estimates on future contracts are drafted and new contacts are established. What did FIAR 2007 mean for the Romanian insurance companies, from the reinsurance point of view? Georgeta CRIDEANU, Reinsurance Director, OMNIASIG summarized: Key events taking place on the Romanian market have been debated, among which: the cat pool that is obviously going to attract major responsibilities and, consequently, large premiums, the development of the motor market, whose results are now under full re-evaluation after implementing the measures on establishing the premium level, as well as the development of D&O insurance in the light of the new legal framework; the trend in the results for credit insurance was not overlooked either, although Romanian reinsurers are still reluctant with regard to this risk, and when they get involved, they follow only formulas that avoid them any potential losses.
The new horizons that open for the whole market were also extremely relevant: a stronger SCOR, determined to maintain an important role in the area, a MAPFRE - Germany with a higher potential and extremely perceptive with regard to the Romanian market, and even a MITSUI SUMITOMO that seemed to be more committed in its intentions to partner with the Romanian companies. There were no signs to indicate a “hard” reinsurance market, on the contrary. If no catastrophic events will occur and even if they do, given that major reinsurers always knew how to find mechanisms that would stop the transfer of most losses towards their companies - we have all the reasons to believe that we shall have for the renewal a “soft” market that will bring us more capacity at reasonable costs, even more so as the Romanian insurance market has had a good evolution, being more and more regulated, and with regard to claims it can be stated that it was not affected by major individual claims or by significant cat claims, while a strong competition that lead to a descending trend in premium rates on almost all insurance lines seems to have calmed down. Consequently, chances are that next autumn everyone finds the desired solutions for contracts they have to put on the reinsurance market.
The new horizons that open for the whole market were also extremely relevant: a stronger SCOR, determined to maintain an important role in the area, a MAPFRE - Germany with a higher potential and extremely perceptive with regard to the Romanian market, and even a MITSUI SUMITOMO that seemed to be more committed in its intentions to partner with the Romanian companies. There were no signs to indicate a “hard” reinsurance market, on the contrary. If no catastrophic events will occur and even if they do, given that major reinsurers always knew how to find mechanisms that would stop the transfer of most losses towards their companies - we have all the reasons to believe that we shall have for the renewal a “soft” market that will bring us more capacity at reasonable costs, even more so as the Romanian insurance market has had a good evolution, being more and more regulated, and with regard to claims it can be stated that it was not affected by major individual claims or by significant cat claims, while a strong competition that lead to a descending trend in premium rates on almost all insurance lines seems to have calmed down. Consequently, chances are that next autumn everyone finds the desired solutions for contracts they have to put on the reinsurance market.
Regarding the information content of the FIAR conferences, you will read about it in the next pages. The results of the business meetings shall be reflected most likely in the companies’ reinsurance policy. As for the atmosphere, we quote once again the participants opinion: it did not hurt to have moments of relaxation as well, as they made us all feel closer to each other and realize we belong to the same community of interests, allowing foreigners to know us better (Georgeta CRIDEANU).
