BCR Asigurari, ranked third on the general insurance market, saw turnover advance by almost 45% last year, to around 174m euros (580m RON).
"We did very well on comprehensive and auto liability (RCA) segments, just like on property and CAR (construction insurance). However, we cannot enjoy the growth on the car insurance sector, because we have loss-making business lines," Mihai Tecau, BCR Asigurari chairman, told ZF.
The company last year generated net income worth around 2m euros, twice as low against the 4.2m-euro level registered in 2006.
"We reached this profit by making sacrifices: salary hikes were restrained and we froze the fees paid to agents and brokers at a certain level. Looking at the technical result, it's clear it is positive, but when the other expenses are added up, the figure goes down," explains Tecau.
He believes the insurance market made losses last year, as was the case in 2006, due to the high level of car insurance claims.
"Unless insurance companies change something in their policy, nothing will change. Coming up with dumping prices each year and fighting for a market share at any cost is not a solution," states the BCR Asigurari chairman.
The company plans to set up a claims management department this year in a bid to improve the quality of services and cut costs. Another insurer that has already introduced such a project is Allianz-Tiriac, the biggest insurance company on the market. At the same time, BCR Asigurari will also set up a new centre that registers car insurance claims, after it first created one in 2007, and will also launch several insurance products in partnership with its parent company. The products could, for instance, be sold bundled with loans or cards.
When Tecau was appointed chairman and general manager of BCR Asigurari in September 2006, he announced that his intention wa
