This year, the 12th edition of FIAR – International Insurance - Reinsurance Forum took place between the 25th and the 29th of May. Recognized as the most important event of the European spring, dedicated to the insurance and reinsurance markets, FIAR 2009 brought together almost 500 leaders and specialists, representing 207 companies from 24 countries throughout the world. Besides insurance and reinsurance, other fields were also represented at FIAR 2009, such as: IT, consulting, private pensions, leasing, automotive, law and many others.

How do brokers overcome the economic crisis

The series of 6 Theme Conferences conducted at Sinaia started with the Brokers’ Day.
The economic crisis context we experience, affecting various production activities, forces numerous company managers and leaders to adopt spontaneous solutions to keep their business afloat. It is recommended that these decisions be made after a very thorough understanding of the market, of one’s own company and, last but not least, of the human resources of the respective company. This was one of the main conclusions that emerged after the Conference.
Under the crisis, the insurance brokerage companies cut off many expenses related to protocol, advertising, trips, service provision, rent, commissions or the salaries of their own employees.

The Official Reception: hosted by UNIQA Asigurări

On the first evening of FIAR 2009, the splendid decor of the Mirror Hall at the Sinaia Casino hosted the Official Reception of the Forum. This is the place where, year after year, the world’s leaders and specialists in insurance and reinsurance come together to celebrate the opening of a new Edition of the most important European spring event in this field.
On this occasion, PRIMM - Insurance & Pensions magazine offered four awards to the leaders in reinsurance.
The opening was followed by the Official Reception, offered this year by UNIQA Asigurări.

Brokers answered the EUROINS invitation

The Official Reception of the 12th FIAR Edition was followed, this year, by an event that EUROINS offered for the leaders and specialists in the brokerage market.
The Parc Coffee Sallon from Sinaia became overcrowded after 10.30 p.m., when more than 100 brokers got together, answering the invitation extended by EUROINS.

Crisis, but also potential for two-digit growth

ISC will do its best to strengthen the customers’ confidence in the insurance industry and I am sure that companies active on the market will make all necessary efforts in this respect. In my opinion, there are enough arguments to support the idea of a two-digit growth for this year, but everything depends on the companies, the President of ISC, Angela TONCESCU, stated at the International Markets Day conference. Actually, although the first quarter reported the first decline of the relevant market, the interest of foreign players for the business in Romania was demonstrated by the capitalizations made in the first three months, their value amounting to RON 300 million, according to ISC.
As for the implications of the crisis on the insurance market, considered from a macroeconomic level, it is estimated that this industry will decline this year because insurance is part of the secondary economy and it will be affected just like the other financial sectors - banking, leasing, capital market, according to the statements of Dragoş CABAT, President, CFA Romania.

The specialists in financial investments got together at FIAR

For a second year in a row, FIAR – International Insurance-Reinsurance Forum hosted the Financial Investments Day, an event organized with the support of CFA Romania. The members of the Steering Committee of CFA Romania present at the event debated the impact of the crisis on the financial investments from our country, the change of the investment strategies under an economic recession, as well as the expected long term performance of the investment funds.
One of the main conclusions was that, for a long time, companies will face major financing problems, as investors will prefer the “super offers” coming from the States: There are many such examples in USA, as well as in some European countries. Certainly, this trend will come to Romania as well, Dragoş CABAT, President of CFA Romania, said.
The current difficult economic environment causes companies to lower their expectations of returns on long term (in this respect, the portfolio structure needs and, moreover, has to change) and to include a higher volatility level in calculating the profitability.

Solutions for bringing life insurance out of the crisis

If the 2008 FIAR edition debated on the spectacular growth of the life insurance market, the debates this year focused on the perspectives for the future and on the measures required in the current economic context which caused the life segment a nominal decline of 15.9% in euros in the first three months, according to INSURANCE Profile.
The decline in life underwriting was already predictable at the end of last year. As for a potential revival, it is estimated that life insurance market might come out of this decline once the credit squeeze is over, a phenomenon predicted by more and more analysts, Dan CONSTANTINESCU, Member of the ISC Board, mentioned on the Life And Health Insurance Day at FIAR.

Conferences with... Turkish coffee flavour

MILLI Re, Partner of FIAR 2009, offered the participants, in one of the Forum’s days, Turkish coffee breaks, where the guests could also taste Turkish delight and baklava, followed by lunch with traditional Turkish dishes.

The Russian spirit at FIAR 2009

The insurance and reinsurance leaders and specialists gathered to spend the evening accompanied by the sounds of Russian music, thus continuing the series of events intended for socializing and for starting new partnerships.
At the event’s opening, Olga SIGALOVICH, General Manager of EASTERN Re, expressed her delight for being present at FIAR as Main Partner and for offering the participants an event that can bring them closer to the Russian traditions.

Voluntary private pensions, the only solution

Present on the Private Pensions Day at FIAR 2009, Adrian ALLOTT, Senior Consultant, MILLIMAN Consultants & Actuaries, stated that, in order to reach a decent replacement rate of approximately 70%, the level of contributions should be about 17% of the salary. Given that such an increase in contributions is unlikely, the only possible solution is saving through an voluntary private pensions, and the state should strongly encourage this attitude. Adrian ALLOTT’s opinion coincides with the opinion of Jaap MAASSEN, Vicepresident of EFRP, the conclusion being that the current structure of the mandatory private pensions system cannot bear the additional costs, quite sizeable, that the introduction of a new guarantee requires. In other words, a rushed decision in this respect, without a careful analysis, might easily cause a “blockage” of the 2nd Pillar of private pensions. Moreover, in terms of investment returns, introducing too strong guarantees proved to be extremely disadvantageous for the participants, who paid too high a cost for security, with massive losses in the investment performance of their pension fund. The shorter the time horizon related to the guarantee, the tighter the control over the fund’s placement policy, thus calling for an exaggerated prudence and loss of investment opportunities.

Romanian traditional evening at FIAR 2009

2009 is the fifth year when ASTRA Asigurări - UNIQA offered the participants to the Forum an unforgettable evening, promoting not only the Romanian insurance market, but also the Romanian traditions and the friendly and hospitable Romanian spirit.
In this context, the Media XPRIMM team had the pleasure to offer to ASTRA Asigurări - UNIQA, represented by Mr. Radu MUSTĂŢEA, President of the Board, the “FIAR’s Best Supporter” award!

Solutions for the problems in motor insurance

The amicable report has recently generated numerous controversies regarding the applicability of this procedure, due to the limited information provided to car owners, respectively the insurers’ insufficient preparation in this respect. Nevertheless, the Insurance Supervisory Commission rejected, on Tuesday, May 26th, 2009, the request to cancel the application of the amicable report. Regarding the market’s readiness, I can state that there will never be a very good training system, because of shifting to a radically different system, compared to the previous one. We are one of the last European countries to apply this procedure, in many countries, even in Eastern Europe, the amicable report being in force for over 10 years now, Albin BIRO, Member of the ISC Board, said at the Motor Insurance Day.
The fact that, as of 2010, MTPL policies will have to be issued online, will represent a turning point for the insurance brokerage companies, as it may coincide with an improved confidence in their activity – as per one of the conclusions of the Motor Insurance Day at FIAR 2009.
The situation of non-material damage, as well as their trend on the national insurance market, represented another topic tackled at the conference. In Romania, at the moment, there are no specialists that understand and interpret the non-material damage phenomenon. Meanwhile, despite an increase in the number of claims on this segment, there is no regulation on moral compensations, Ion MOISE, Managing Director, E-CLAIMS Management, said.