Marsh, a leading insurance broker on the local market, has budgeted a revenue increase of 20-25% for this year, set to reach around 7.6 million euros.
In 2007, the broker, which exclusively works with corporate clients, posted turnover worth over 6.1 million euros and intermediated insurance contracts worth 40 million euros.
"We intend to grow on the segments of real estate, bancassurance, and consultancy for state-held institutions," Cristian Fugaciu, general manager of Marsh Romania, told ZF. He estimates a major component in the business will be the brokerage of employee benefits, which could amount to as much as 10% of turnover, compared with 5% in 2007. Employee benefits are benefits offered by employers to their staff and include life insurance, health insurance and private pensions.
"To begin with, we want to promote consultancy for employee benefits, with the next steps to be insurance and pensions brokerage. I think the voluntary pensions market, for example, will grow at a slower rate, because the product is still not fully understood, while many employees are unsatisfied with the level of tax deductibility, and have not included such expenditures in their budgets," Fugaciu added.
Marsh has already brokered voluntary pension contracts for three large companies, which pay pensions for 3,000 employees, with the maximum amount being 200 euros a year per employee.
In 2007, the broker's business was based on car insurance, which accounted for 40% of the value of contracts brokered, while the rest of policies were for property insurance (20-25% of the total) and financial insurance (20-25%). Around one third of the policies were brokered for the clients of banks and leasing companies.
Marsh currently has three offices, in Bucharest, Timisoara and Cluj, and could expand to other regions.
"We will not open any more offices this year, because we want to consolidate the already existing ones. We are looking carefully at Moldavia and Constanta, but in these areas businesses are still not sufficiently developed, and it is difficult to find skilled personnel," explained the general manager.
Marsh is the second largest broker on the market, after Porsche Broker, which handled insurance policies worth 50 million euros in 2007.
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