Losses of the insurance market could continue to rise unless insurers charge the right prices, says the CEO of Generali Asigurari.
Next year will be as difficult as 2009 for insurers, with a less than two-digit market growth rate, says Marie Kovarova, CEO of Generali Asigurari, one of the top ten players on the insurance market, controlled by the Generali PPF Holding.
In the first half of the year, the insurance market grew by only 6%, whilst in previous years it had recorded two-digit rises, putting pressure on insurers to cut costs and change business strategies.
"The year 2010 will also be a difficult one because nobody knows what the political situation will be and what measures will be taken to restart the economy. What is primarily needed is a reform of the healthcare system and to encourage the population to save money. I don't think the insurance market will see more than a one-digit growth next year," Kovarova told Ziarul Financiar in an interview.
Kovarova, 35, is Czech-born and was appointed to the helm of Generali Asigurari a year ago, after being a part of the executive management team of Ceska Pojistovna, the largest insurance company held by the Generali PPF Holding.
"When I took over the management of Generali, it didn't even cross my mind that insurers would face their toughest year yet, but I wouldn't change my decision. It is a challenge, it forces you to think more and alter your strategy."
Generali's chief executive compares the Romanian insurance market with the Czech one, which has not been so affected by the economic crisis, primarily because it is not so dependent on car sales, but also because it is a much more mature market, with clients being used to buying insurance and making long-term savings.
2009 will see losses of the insurance market continue to rise, after they doubled last year, just as they