Turkey's FIBA financial group wants to gain 1.5% of the general insurance market by 2008 through the recently created FIBA Asigurari insurance firm.
"We believe that owing to the still low penetration degree of insurance, the Romanian market still has a strong growth potential and is expanding much faster than the overall economy," Muammer Ucarer, a general manager with FIBA Asigurari, told ZF.
The company will change its name to Credit Europe Asigurari as Finans group was renamed Credit Europe after NBG acquired Finans Turkey last year, with the Romanian operations not included in the deal.
"Our target is to account for 1.5% of the general insurance market in 2008. We will be an insurance firm focused on growth, but not only in terms of market share, but also of profitability and service quality," said Ucarer. FIBA group has been present domestically for seven years through Credit Europe Bank Romania (the former Finansbank) and Credit Europe Leasing Romania (the former Finans Leasing).
"We consider insurance is part of financial services and we plan to broaden the range of financial services by introducing insurance products," FIBA Asigurari general manager also said. The new insurance company of Credit Europe will operate on the market of non-life insurance, which last year generated a volume of gross underwritten premiums worth 1.3 billion euros, namely 81% of the overall insurance market.
"We will focus on personal lines such as accident insurance, house insurance, liability, travel, car insurance, as well as on insurance aimed at small and medium-sized enterprises," explained Ucarer. Though it will operate on the market of general insurance, FIBA Asigurari is not ruling out the possibility of its tapping into other segments of the insurance market, as well.
"We may consider entering the segment of life insurance, as well as the private pensions market in the near future," he added.
To distribute insurance products, the firm will use the branch networks of Credit Europe Bank and Credit Europe Leasing, including 100 sale points nationwide.
"(...) At the same time, we are considering the possibility of using other distribution channels, such as brokers or agencies that match our product structure and marketing philosophy, as well as direct sales through the Internet, call-centre or sales teams," said Ucarer. The new firm will have 60 employees by late 2008.
Romania is the second country where FIBA has decided to launch an insurance firm after Turkey. FIBA is not the only financial group domestically that has decided to tackle the insurance market. Other groups that have embraced this strategy include BCR, Banca Transilvania and EFG Eurobank. The insurance market boasted fast growth last year, by 33%.
Credit Europe Asigurari
The newly founded insurance firm of Turkey's FIBA financial group
Will operate on the segment of non-life insurance, but may consider entering other segments of the insurance market
To distribute its insurance products, will use the branch networks of Credit Europe Bank and Credit Europe Leasing, but is considering using other distribution channels, too
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