Year 1 no. 3 WednesdaY may 26 2010

10.00Live Broadcasting Official Opening of “PRIVATE PENSIONS’ DAY”

11.00 - 11.30 – Risk hourTo re or not to re?Host: Alex ROSCA

Co-host: Alexandru CIUNCAN

Guests: Filip STAVROSITU, Aviation Insurance and Reinsurance Manager, ASTRA Asigurari, and Simon FOREMAN, Director, RFIB  

12.00 - 12.30 – Risk hourReinsurance market - between East and West Host: Alex ROSCA

Co-host: Oleg DORONCEANU

Guests: Igor ALEKSEEV, Managing Director of Inward Treaty Division, INGOSSTRAKH, and Thi-erry PELGRIN, Specialty Manager, EVEREST Re

13.00 - 13.30 – Risk hourThe market in 2010 - soft or hard? Host: Alex ROSCA

Co-host: Vlad PANCIU

Guests: Kinga LIBRONT, Product Manager, POLISH Re, and Flavius TCACIUC, Reinsurance Director, GROUPAMA

17.00 - 17.30 – Risk hour - pensions Private pensions – the solution of the futureHost: Alex ROSCA

Co-host: Daniela GHETU

Guests: Crinu ANDANUT, President, APAPR, and Cornelia COMAN, CEO, ING Asigurari de Viata

Tomorrow on XPRIMM.TV

BIRO: The joint database for Motor Hull claims will be attached to CEDAM in the following weeks

Russian traditions bring together the West and the East at FIAR

pg. 3pg. 3

Today, FIar 2010 – the Inter-national Insurance reinsurance Forum – hosted the MoTor In-sUranCe daY, a dedicated event on a topic that, under the current difficult economic context, may easily spread unless we manage to control insurance fraud. at the same time, one of the most waited for conferences at the Internation-al Insurance reinsurance Forum tackled another issue that propa-gates year after year, without any signs of improvement – claim rate in insurance, as well as mitigating measures and policies.

Following the introduction of the amicable report and in a dif-ficult economic climate, insurance fraud experienced a hike during this first quarter, according to the specialists present at the Motor In-surance day at FIar. In cases where fraud is substantiated, but no action is taken to start the prosecution, the parties involved become more in-trepid, gain more experience, learn from their mistakes and are free to try their luck with other companies, underlined Madalin rosU, Head of the Claim Management depart-ment, GeneraLI asigurari.

In his opinion, the actions to take after rejecting a claim file should be as follows: filing a criminal com-plaint, reporting the case to the underwriting department, termi-nating the insurance policy in case of Motor Hull and media coverage for the respective case.

as for fraud prevention mea-sures, they are aimed at identify-ing errors in the loss adjustment process and correcting them by altering procedures and processes, or even in the file documentation process, but also at training the sales force for correct underwriting

and avoidance of potential fraud offenders.

The impact of these measures on the company’s activity shall materi-alize in lowering the “leaks” caused by a superficial settlement of files, as well as quick detection of frauds, immediate rectification of errors and identification of honest customers that allows efficient underwriting, explained Madalin rosU.

He also added that a focus on developing IT tools for fraud de-tection or flags that can indicated the presence of fraud can be more helpful than manual detection conducted by claim inspectors. Meanwhile, the presence of the three claim management systems, namely eUroTaX, aUdaTeX and daT, can fully support the collabo-ration between body shops and insurers.

The Department for Fraud Inves-tigation within IGPR (General In-spectorate of the Romanian Police) reaches out to insurers. I realized that we haven’t really had a collabo-ration relationship, therefore I sug-gest to the insurers’ associations to establish a working group focused mainly on identifying collaboration opportunities in investigating and preventing motor insurance fraud, according to Ionel dIMa, Vice-president of aVUs Group, the mod-

MOTOR INSuRANCE DAY

Fighting fraud with a blindfold

With the official support of

main Partners

Partners

Media Partner

MOTOR INSURANCE DAY

www.fiar.ro

Business relationships pass be-yond frontiers more rapidly when the businessmen have a source of inspiration. The Uzbek cuisine pro-vided today, for sure, very strong arguments for a deeper knowledge of the country and its insurance in-dustry.

Traditional dishes, rich in flavor and more than tasteful, accompa-nied by a pleasant music and the

enchanting presence of the hosts dressed in Uzbek costumes, created a hard to forget moment.

This special moment was offered by saIPro, the first company in Uzbekistan which founded and de-veloped a rating system. Innovative and highly professional in their core business line, saIPro proved to be also creative in linking its name to a special moment.

uzbek tradition in the heart of the European business

erator of the Motor Insurance day Conference at FIar.

Marian BUCUr, specialist officer at the department for Fraud In-vestigation within IGPr, explained that very little information on mo-tor insurance fraud is referred to the specialized unit within the ro-manian Police. at the same time, no information exchange is talking place between insurers with re-gard to fraud cases.

Between 2005 and 2009 we had cases where the same person com-mitted fraud on more than one com-panies, using the same methods. It is not a normal phenomenon and we would like to see more openness from the insurers to work efficiently in this area, stated Marian BUCUr

2

Today on XPRIMM TV

Moderator: Alex ROŞCA Co-moderator: Alexandru CIuNCAN Guests: Eugene GuRENKO, Lead Insurance and Risk Management Specialist, World Bank and Guy HuDSON, Executive Manager, WILLIS 

For PAID, this is the beginning of a new stage, when we move from the design to the implementation phase. In my opinion, we first need to put in place an efficient distribution system, based on the electronic underwrit-ing platform whose development was announced at today’s confer-ence. I think this will be a step in the right direction, thinks eugene GUr-enKo, the expert who took part in the whole history of the romanian project for catastrophe insurance.

I believe these are interesting times for all stakeholders and I am looking forward to starting the work with PAID. In addition to the reinsurance activity, I have the privilege of collab-orating with various structures and together we are close to completing the consultancy project developed by the World Bank. In the final stages of the project we shall deliver the DFA model that will be the core of the model used to assess PAID exposure and we shall train the users, starting from the WILLIS experience, said Guy HUdson.

Moderator: Constantin RuDNITCHICo-moderator: Mihai CRACEA, Guests: Ionel DIMA, Vice President, AVuS Group, Madalin ROSu, Head of the Claims Management Service, GENERALI, Vlad PANCIu, Coordinator of the “unde Ma Asigur?” Program

For now, fraud means just fraud to us. Later on, we shall talk more about frauds in other insurance classes as well. We are lucky that we are still talking about motor fraud only, in-troduced Vlad PanCIU the topic of discussion, and Mihai CraCea outlined: If insurers sustain big loss-es and cannot control fraud, these losses shall eventually reflect in the insurance policy price. We are talking about a phenomenon with long term consequences.

There is no way to avoid an increase in the MTPL premium, as the system won’t be able to cover the claims oth-erwise. We talk about the social role of a mandatory insurance policy, but we need to cover the claims by using the premiums collected on the insur-ance market, underlined Ionel DIMA. As for prevention, the bonus-malus system might help, but it has not yet reached the necessary maturity level. One, maximum two years from now we shall be able to assess the impact this system has on the market, said Madalin rosU.

Moderator: Constantin RuDNITCHICo-moderator: Vlad PANCIuGuests: Albin BIRO, ISC Board Member and Ovidiu CIOBANu, President, Street Victims Protection Fund

The amendment of the MTPL norms focuses especially on prevent-ing claim reporting and the follow-ing steps in the adjustment process from being carried out by other legal entities than the insurers’ employ-ees. Thus, every insurer must have, in each county, the capacity to process their claim files. In some cases, the reporting was conducted by an en-tity independent from the insurance company, and if the customer was dissatisfied, he could not contact the insurer easily, explained albin BIro, talking about the measure that IsC has recently taken.

on the claims segment, fraud has become a worrying phenomenon, impacting not only insurers, but the overall society, by the increase in insurance premiums, explained ovidiu CIoBanU, adding that insur-ers should not exaggerate about their activity in the anti-fraud department. ISC has the role of supporting insur-ers in front of the state authorities in order to identify legislative solutions to indict the culprits.

Moderator: Alex ROSCACo-moderator: Alexandru CIuNCAN Guest: Harry HATFIELD, Senior Vice President, GuY CARPENTER

Major European reinsurance com-panies reported positive results at the end of 2009. The underwriting results are remarkable, the volume of catastrophe claims is low, the value of the assets in the investment port-folio recovered and the return on in-vestments is going up, according to alexandru CIUnCan, who opened the discussion about the renewal season on the reinsurance market. as a general remark, Harry HaT-FIeLd said that reinsurance is doing well this year and the crisis is likely to bring a series of business opportuni-ties, therefore we might very well see some interesting mergers and acqui-sitions both on the brokerage market and among the reinsurance compa-nies.

Moderator: Constantin RuDNITCHICo-moderator: Vlad PANCIu, Coordinator, “unde Ma Asigur?” ProgrammeGuests: Sorin ZAHARESCu, Regional Manager, Bucharest region, ALLIANZ-TIRIAC, Georgel SOARE, Director, Arges Branch, uNIQA Asigurari

Implementing the amicable re-port for minor motor claims was one of the touchstones that motor insurers had to overcome in 2009. The success of the amicable reporting procedure is related to the recogni-tion of this document and the aware-ness among relevant stakeholders, whether the persons involved know about this procedure and are will-ing to use it, stated Vlad PanCIU. In agreement with this opinion, Georgel soare explained: When we first started to implement the ami-cable report we noticed that many damaged parties were reluctant about using the new procedure and the awareness level was low. Now we can say that we have reached nor-malcy”. as for perspectives, sorin ZaHaresCU thinks that by the end of the year we shall have 70-75% of minor accidents settled based on the amicable report.

Reinsuring natural catastrophes

2010 - Renewal Round-up Fraud – a threat that became a reality

Motor insurance market: between low underwriting

Tough times for motor insurance

Tuesday was one the most crowd-ed days of FIar: two conferences and lots of bilateral meetings. In this context, MILLI re provided the best opportunity for a mix of business talks and pleasant inter-ludes: a tastefully Turkish meal.Following the successful experi-ence of the previous year, the well known Turkish reinsurer decided to offer once again to the FIar participant the pleasure of the rich flavoured Turkish dishes.doing business in Turkish style or not, FIar attendants enjoyed the meal and the unforgettable Turk-ish coffee. They will not forget, for sure, the name of their potential business partner, MILLI re.

and high claim rate

„Guaranteed networking” by MILLI Re

3

Last night we saw a new edition of an already traditional event at FIar: the russian Traditional night offered by easTern re.dmitry danILenKo, Chancellor of General director, easTern re wel-comed the Forum’s participants and expressed his joy for beeing

once again a strategic Partner of FIar and bringing the russian tra-ditions closer to his industry col-leagues.We are honoured to host you for the second time trying to offer you a special event, which brings you not only the Russian business envi-

ronment, but our traditions. I wish you a pleasant evening, said Mr. danILenKo.The music of anna LesKo and the dance show offered by The rus-sian dancers group provided a friendly networking environment, in a memorable evening.

Russian traditions bring together the West and the East at FIAR

Closed MTPL claim files rose by 24% in Q1For the first three months of this year, the number of closed MTPL claim files rose by 24% (105,810 in Q1/2009, from 85,386 in Q1/2008). The claims reserves have also in-creased, by 31%, up to ron 991 million.as for last year’s trend, MTPL claims went up by 7%, from 345,000 in 2008, to around 371,300 in 2009. The number of files with paid claims reached a total of 341,462, namely 6% more than last year. at the same time, paid claims in this class rose by almost 30%, up to ron 1.53 billion. Thus, the aver-age paid claim followed the same upward trend, going up by 21%, to ron 4,486 in 2009, according to data provided by the Insurance supervisory Commission.on the Motor Hull segment, the total claims paid increased by 18% up to ron 2.88 billion, while un-derwritten premiums diminished by 6%. The claim reserves went up by 17.7%, to ron 206 million by the end of 2009.

Mona CuCu, ISC: 3% of the insured were sanctioned with malusThe bonus-malus system makes road traffic participants more re-sponsible and can also mitigate fraud. Right now, 3% of all insured persons received a bonus-malus penalty. We do hope that electronic issuing will increase the accuracy of the CEDAM database and help in-crease to 10-12% the estimated lev-el for MTPL insured persons cover-age, explained Mona CUCU, Head of the directorate for Mandatory

Insurance Licensing and regula-tion, IsC.

BIRO: The joint database for Motor Hull claims will be attached to CEDAM in the following weeks

Both the IsC and the insurance companies are still faced with a communication problem. at least two or three meetings with the pro-fessional associations have been or-ganized to discuss this issue. As far as the joint database is concerned, insurers are required to send claim data to the joint CEDAM database, and this obligation has been in place

for the past two years. In the follow-ing weeks, the ISC will implement a program that includes the joint da-tabase with the Motor Hull, to be at-tached to CEDAM, stated albin BIro, IsC Board Member.

The chairman of NOPCML: Companies must be aware that a lack of necessary measures leads to money laundering cases

If insurers don’t take the necessary measures, they will face money laun-dering cases. Our role as an institu-tion in charge with money launder-ing prevention and combating is to raise the awareness of reporting entities, together with the relevant monitoring unit, and make them take the necessary measures in line with the existing legal provisions. We also need to ensure a unitary and ac-curate interpretation of the law, de-clared adriana PoPa, President of noPCML (The national office for Prevention and Control of Money Laundering), in the opening of the conference dedicated to Motor In-surance at FIar 2010.

InvItatIon

Baden-Baden ReceptIonSunday, October 24th, 2010, 19.00 – 21.00

Holland Hotel SophienparkSophienstrasse 14, Baden-Baden

INSURANCE & PENSIONS

www.primm.ro Year XI - No. 12/2009 (80) OCTOBER

CEEInsurance Markets 2009

CEEInsurance Markets 2009

Special Report

10 YEARS

Special Report On the road to recovery

Interview

Mircea OANCEACSSPP

Interview

Michaela KOLLERCEA

Reinsurance

Renewals 2010 Ready! Set! Go!

International Events

ICAR 2009Dwellings insurance

Monte Carlo

Les Rendez-Vous de Septembre

Company Profile

EASTERN Re

ASTRA Asigurări

CERTASIG

CARPATICA Asig

RSVP until 16th october, 2010Mrs. Georgiana opRea, phone: 004 0752 111 411, e-mail: georgiana.oprea@mxp.ro

Launch of

the Cee MaRketS SuRVeyby pRIMM Insurance Magazine

Partners

Save the date!

4

Thursday, MAY 27, at FIARPRIVATE PENSIONS DAYPART I (9.00 – 11.30)The CEE pension systems Demographic perspectives Post-crisis pensions in the CEE Region Poland - a case study

PART II (11.45 – 13.30)

PART III (14.30 – 16.30)The Romanian private pensions market - the 2nd Pillar after two years of operation Financial returns - whereto? Are the

Romanian financial markets large enough to support the pension funds growth? Which are the real costs of the system

guarantees? The multi-fund system: when and

mainly... how?

Conferences

Farewell Party

Old Nick PUBoffered

Networking opportunities

Exchange rates1 EuR = 4.1724 lei1 uSD = 3.3867lei

METEO

Max:26˚C Min:14˚C

The economic facts under the spotlight of the CFA members

on the Financial Investments day, an event that enjoyed the sup-port of CFa romania, at the 13th edition of FIar – The International Insurance and reinsurance Forum – the participants tried to point out the main lessons learnt from the current economic context.

The special guests at the third edition of this conference were

the CFa board members - adrian CodIrLasU, CFa, Phd, President CFa romania, Bogdan BILaUs, CFa, Vice-president CFa romania, adri-an MITroI, CFa, MBa, Phd – Mem-ber of the steering Committee, CFa, romania, secretary and last, but not least dragos CaBaT, Member of the steering Committee, CFa ro-mania and moderator of the event.

Greece, Portugal, spain, Ireland and Italy are the eurozone coun-tries that were hit the hardest by the economic crisis, due to their very high indebtedness rate. The situation in these countries is even more complicated as the crisis was triggered by enormous budget deficits and public debt. These countries face a situation similar to the Asian case, as they strongly rely on external financ-ing. Being in the euro-zone, they cannot issue money to pay for their debts and are forced to find new means of financing in euros. These states are “prisoners” of the European Central Bank, stated adrian CodIrlasU, President of CFa romania.In Greece, under the current circum-stance, if they did not join the Eu-

rozone, the Greek drachma would have been depreciated greatly in order to cover the debts, added adrian MITroI, CFa romania.The first half of the conference fo-cused on Financial Investments. The CFa board identified the main crisis profiles (generations). g The 1st Generation – pegged exchange rate or target zones “argentina being one of the ex-amples” (adrian CodIrLasU)g The 2nd Generation – a specu-lative attack may occur if the fiscal and monetary policy is consistent with the pegged ex-change rate policy, asia being the main example as it “did not have access to financing and let their currency depreciate a lot”, explained the CFa President, romania

g The 3rd Generation – the crisis on the financial sectors”, like the subprime crisis from Usa”, no-ticed adrian CodIrLasU. at the same time, the measures taken across the globe to fight the financial crisis were aimed at “shifting” from G7 to G20 by add-ing developing countries, soaring public expenditure in the affect-ed countries, quantitative easing especially in the Usa and the UK, bank capitalization, “mechanical” currency depreciation (the large share that the banking system has in the GdP determined the UK to adopt this measure). Last but not least, IMF became heavily involved, turning into a leading player on the world mar-ket.

The “Eurozone” countries, burdened by debt

Prior to the outbreak of the crisis the capacity to acquire debt increased, leading to a lending opportunities at a higher level, with higher interest rates. Thus, banks were able to sell fi-nancial packages at maximum rates, stated adrian MITroI, CFa romania, during the conference on Financial Investments.The policies applied so far have failed to yield good results because after 40-50 years of growth (editor’s note: USA), nobody anticipated such an

aggressive and merciless crisis, add-ed adrian MITroI.romania was affected by the “amer-ican crisis” due to the exposure of banking institutions to subprime loans. The fact that the asian banks owned significant shares in the american subprime market spread the crisis worldwide.Cheap money brought about real estate bubbles, explained adrian CodIrLasU, President, CFa roma-nia.

After half a century of economic growth, nobody expected such an aggressive

www.insuranceprofile.ro

ROMANIAN INSuRANCE MARKET FIGuRES!

to the latest

GET INSTANT ACCESS