Franz Weiler, Uniqa Asigurari: The insurance market in Romania needs awareness and education to see growth

Appointed as the president general manager of Austrian-based Uniqa Asigurari in late December last year, Franz Weiler talks to The Diplomat-Bucharest about the insurance industry: although with great potential, the Romanian insurance market faces several difficulties, generating losses since almost a decade. What needs to be done?

2015-10-07 16:30:20

Romanian insurance market has not reached stability yet, as 25 per cent of the market is hold by insurance companies in critical financial conditions and international players are leaving the market or reduce their exposure. In this context, in order to encourage growth and development for the industry, Romania needs awareness and education in order for people to understand that an insurance policy is the closest and the least expensive solution in case something happens to their goods, their health or their lives, Franz Weiler, the president general manager of Austrian-based Uniqa Asigurari, tells The Diplomat-Bucharest. Furthermore, a more predictable environment is also needed.

"Romania is special when it comes to insurance market, still in development process and it didn't reach stability yet," says Weiler. "The whole industry is generating losses since almost a decade. Uniqa Romania reshuffles currently the business model, we reduce the exposure in motor risks significantly, the organisational set up of the company has drastically changed and is now efficient and ready to manage the challenges of an uncertain future. The industry is facing stormy times, Solvency II will change the rules. However, in order to grow, Romania needs awareness and education in order for people to understand that an insurance policy is the closest and the least expensive solution in case something happens to their goods, their health or their lives. The insurers shall further develop customer centricity and win the trust of the clients. Motor business is dominating the market and requires a regulation which allows the industry to develop their business in a more predictable environment."

Starting with 2015, Uniqa Asigurari decided to review the whole product portfolio and started redesigning and improving most of the products. In the next period, Weiler notes that the company will concentrate on health insurance, employee benefits products (life and health insurance) and corporate business. The value of the gross premiums written in the first half of 2014 of Uniqa Asigurari was around 47.6 million Euro, a 31 per cent decrease compared to previous year. This year, as a result of starting the implementation of portfolio balancing measures, Uniqa registered a decrease in motor segments of "a mid two digits percentage comparing the first half of 2015 with the same period of 2014," says Weiler. "Our aim in this moment is to improve our results in terms of profitability, client satisfaction, service quality and product development," he adds. Uniqa Asigurari market share in the first quarter of 2015 was situated at almost five per cent of the general insurance market.