BRCC interview for News& Views
20 January 2012
CertAsig’s evolving profile
The profile of CertAsig Insurance Company has evolved dramatically since 2007 as the main insurance products offered were motor and travel. Now in 2012 the company works almost exclusively with insurance brokers and offers very specialist products, rarely offered by its competitors. Risks insured last year by CertAsig were very diverse and included ships trading on the Black Sea, cargo being transported along the Danube River, art exhibitions, helicopters, construction projects, New Year parties and events as well as more technical products such as bid and performance bonds.
Underwriting expertise combines with the Lloyd’s of London business model
CertAsig CEO and President of the Board, James Grindley, who started his career in the well-known Lloyd’s of London insurance market 17 years ago explains that CertAsig does not wish to aggressively sell motor business in Romania. The Romanian motor market, despite being about 75% of the total market premium, is hugely competitive and a very tough market in which to make money. CertAsig has a team of first-class underwriters including Mihai Blajan (Deputy General Manager and Chief Marine Underwriter) and Mihaela Cojocaru (Chief Underwriter and Member of the Board).
James Grindley stated: “My underwriting team focuses their expertise and talent on non-motor insurance classes which statistically are more profitable (premiums v claims). We rely on their skill and judgment to underwrite the right risks, at the right price. Our business model is very different to other insurers in the markets where we work; it is more like the Lloyd’s business model. Indeed our policies are reinsured by Lloyd’s Syndicates as well as large reinsurers such as Munich Re, Hannover Re and SCOR. Our claims management teams are also very experienced and careful of fraudulent claims which during the crisis tend to increase.”
Romania and Turkey – 2 core markets
CertAsig’s business derives from 2 core markets. Approximately 50% of the gross premiums come from the Romanian non-marine insurance market while 50% derives from the Turkish marine market. In 2011 the total gross premiums of the company exceeded EUR 7M with an increase of more than 50% on 2010. The growth came from the increase in sales for specialist products. This specialist segment is small but growing fast. Core products sold by CertAsig included: liability, bid and performance bonds, event insurance (including weddings and concerts), marine and aviation risks. One way in which CertAsig differentiates itself is by offering its brokers very quick responses to their offer requests.
Plans for 2012
CertAsig has 4 offices in Romanian (Bucharest, Constanta, Timisoara and Cluj) and now plans to open a representative office in Istanbul to support the growth of Turkish marine business. The aim is for CertAsig to be closer to the Turkish marine market, in particular specialist marine insurance brokers. CertAsig will also offer general aviation on the Turkish market to expand it successful Romanian aviation insurance portfolio.
Grindley says: “In Romania we shall continue to innovate new products as more opportunities arise. The Romanian business environment is constantly changing. As a small-medium sized insurer, we are able to react quickly and offer news products immediately. This ability to innovate gives CertAsig an edge in the market. CertAsig is an entrepreneurial ‘underwriting shop’ with no bureaucracy. This is the atmosphere I always encourage and I know our brokers respond positively to this approach.”