WE DON'T OFFER BONUSES, BUT REAL SERVICES
Temenuga Nenova, Executive Director and Member of the Management Board of Allianz Bulgaria Insurance and Reinsurance Joint-Stock Company, to the BANKER weeklyMrs. Nenova, what strategy will Allianz Bulgaria apply in the campaign for contracting the Civil Liability insurance in 2004?- Our company builds its strategy regarding the Civil Liability insurance of motor vehicles considering the most recent statistics, the impressions and experience gathered by similar companies from Eastern European countries that have walked the same road and have passed to the higher European Union tariffs with cataclysms and negative results. That's why, taking into account the low tariffs settled by the Financial Supervision Commission as lowest and obligatory, we're not going to step on the market aggressively in order to be able to guarantee safety and good quality of services to our customers.We count on the professional approach in liquidating the damages, as well as on the complex services that we offer to each owner or driver of a motor vehicle along with the Civil Liability insurance - such as Autoassistance and Casco, at advantageous terms. We have signed agreements with more than a hundred companies that provide Road Assistance 24 hours a day on the whole road network of the country. Our Assistance centre works round-the-clock to help the cars insured by our company by registering every damage and informing the company experts about it. Everything related to cars is included in eight insurance products which we've been establishing on the market for a year. The result is positive, because customers get all the services they need at one single place.What kind of damages has your company paid on the Civil Liability insurance for the past months of the year?- To analyze the results of the Civil Liability insurance, we need to follow the chart of average payments. If we compare the 2000 chart with those made for 2001 and 2002, as well as with the one for the ten months of 2003, we'll see that the average amount of damages in the sector of non-property damages has grown five times. Moreover, we are still compensating damages by the low tariffs from past years. As of October 31, 2003, our company has reported an 82% quota of damages under the Civil Liability and this quota is going to grow by the year-end. Insurance events happen every day. 856 people died on the Bulgarian roads until a week ago, thousands were injured. If we suggest that one third of the accidents is caused by customers insured by our company, you can see what amount of claims we can expect. The number of renewed claims keeps growing, too.Injured people who have already been paid certain compensations lay repeated claims for further compensations, because their condition has deteriorated or they need additional treatment to recover. That makes us very cautious when fixing reserves for coming payments. I do not believe there is a company able to boast that the Civil Liability insurance is profitable. If someone says that, it will not be a sincere statement. Such a result can be obtained if there are no reserves allocated and net paid compensations are compared to the collected premium. Only then would a distorted situation like this show a positive result.In your opinion, how will the Bulgarian model of contracting the Civil Liability insurance be replaced by the European one?- The concept of the Civil Liability insurance of motor vehicles will inevitably suffer changes by 2007. At that time, when a policy is to be signed, criteria such as age, sex, qualification of the driver, type and purpose of the vehicle, period of use, etc., will be taken into account. Tariffs will be much higher then. I think that selling the Civil Liability insurance simultaneously for Bulgaria and for other countries will not become possible at once. Because a person who still drives his old Moskvich will reasonably ask himself why he would need to buy this type of policy as he will never travel abroad. Probably, there will be a transition period during which people will get used to being citizens of a much larger territory in which transportation is free. Still, that transportation will need certain financial resources in order to be implemented. Therefore, all these things must be settled by 2007 and Bulgaria must join the EU with a normal insurance protection.