Insurance from Copacabana to Ponta da Piedade

Insurance From Copacabana to Ponta da Piedade

José Manuel Fonseca, CEO of GrECo nova partner MDS Group, talks to GrECo nova Network Coordinator Jonathan Höh about the special features and differences of the two largest MDS insurance markets: Portugal and Brazil.

The two countries have many things in common, such as language and their dynamic growth, but on closer inspection, they could not be more different. Jonathan Höh and José Manuel Fonseca take a closer look at the insurance markets of Portugal and Brazil.

MDS is the market leader in Portugal with almost 300 employees in 9 local offices and in Brazil among the top 3 insurance brokers, with more than 500 employees in 12 locations.

HÖH: José Manuel, tell us something about the insurance markets in Portugal and Brazil.

Fonseca: Let’s start with Portugal. Here, the insurance market is highly developed – in terms of population – at just under 5%, but of course much smaller than the Brazilian insurance market. However, Portugal is currently experiencing a growth spurt due to the events of the last few years. For example, the pandemic has led to an increased demand for health & benefits solutions. We are experiencing an upward trend, especially in health and accident insurance, which is expected to continue. In addition, Covid-19 and the global natural disasters have unfortunately led to a massive hardening of the market in Portugal as well. In property and business interruption insurance, liability insurance, but also in financial lines such as D&O and cyber, capacities are tumbling and premiums are rising, in some cases massively. In summary, the Portuguese insurance market is characterised by stronger demand for personal insurance, especially health insurance, and despite the tough market environment, also for cyber and D&O insurance. In addition, there is significant growth in retail and insurance related to e-commerce platforms, B2B2C as well as online sales.

The Brazilian insurance market is also developing well. The main drivers here are agriculture, livestock, health and technology, with the latter gaining tremendously in importance due to the exponential increase in teleworking. We expect this trend to translate into increased demand for cyber insurance in Brazil as well. Agricultural insurance has also seen the largest growth in recent years, with a 30% increase. Other booming areas, partly due to the pandemic, are surety and credit insurance.

Brazil is also attractive to foreign investors but is considered a high-risk country in terms of stability, corruption, bureaucracy and currency fluctuations. Therefore, hedging political risk is important.

HÖH: Let’s go into a little more detail. Where do you see the main differences?

Fonseca: In Portugal, an EU member, most insurance regulations are similar to those in other EU countries. After all, they are based on EU regulations and directives. For example, motor vehicle liability insurance has been compulsory for forty years, and the scope of coverage is at the European level. Brazil also has compulsory third party motor insurance, but at such a low level that it does not provide sufficient minimum protection. This means that international corporations are well advised – especially when travelling on business with rented cars – to purchase the so-called “non-ownership clause” as a protective cover in their global liability programmes to guarantee a minimum level of protection.

Brazil, unlike Portugal, is a broker market. This means that in Brazil it is mandatory to purchase insurance through an insurance broker. Another key difference that is relevant for large international companies, concerns the reinsurance capacity. In Brazil, reinsurance is highly regulated. Many companies have to reinsure through the largest Brazilian reinsurer IRB, Instituto de Resseguros do Brasil, while in Portugal risks can be freely placed on the international reinsurance market. 

HÖH: What distinguishes the MDS Group as a partner for the industry?

Fonseca:
MDS was founded in Portugal over 35 years ago. From the beginning, we have strived to build a global company that challenges standards, sets trends, modernises processes and expands business areas and portfolios. With our presence in seven countries – Portugal, Brazil, Spain, Angola, Mozambique, Malta and Switzerland – MDS is a strong partner for the industry and an independent leader in several markets, with Portugal and Brazil being our two largest markets.

Since 2017, we have also been Lloyd’s broker, incidentally the only one from a Portuguese-speaking country.
We will continue to focus on digital transformation as one of our strategic priorities, investing in technology, software development and teams of experts.

For example, we have developed an app that allows our clients to access their insurance portfolio easily and quickly via mobile phone. To meet the need for efficient processes, we are also using digital tools to manage most administrative tasks, enabling both our clients and our teams to invest freed-up time resources in high-quality activities.
 
About José Manuel Fonseca
Jose Manuel Fonseca has led the MDS Group for 20 years, growing the company from a small broker to a giant in the Portuguese-speaking region. He has 35 years of experience in the risk and insurance industry. Fonseca is also chairman and founder of Brokerslink and a former vice-president of FERMA (The Federation of European Risk Management Associations) and a board member of CIAB (The US Council of Insurance Agents & Brokers). In 2018, he was awarded the “The Broker Leader of the Year” award by FERMA.

About MDS Group
MDS was founded in Portugal over 35 years ago. With an active presence in seven countries – Portugal, Brazil, Spain, Angola, Mozambique, Malta and Switzerland – MDS is a strong player in the European brokerage landscape and an independent leader in several markets. The company employs 900 people who manage a premium volume of 650 million EUR and generate a turnover of 80 million EUR.


This article is a part of our latest Spotlight publication focusing on supply chain issues. Read the publication and learn more about how you can protect your business from changes and unpredictable supply chain disruptions.

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Jonathan Höh

Network Coordinatoron

T +43 5 04 04 396

José Manuel Fonseca

MDS Group CEO

We think and live internationally

The demands on risk and insurance management are naturally complex. This is especially true in the management of international groups of companies.

The opening up of the East and a few years later the accession to the EU have boosted the Austrian economy.

GrECo also recognised the opportunities at that time and started on the path towards internationalisation more than 30 years ago. An independent department was established in Vienna, the “Central Account Management”, or CAM for short, which manages all the insurance interests of globally active groups of companies.

The CAM team focuses exclusively on this client segment. It is also responsible for the so-called incoming business, i.e. investments by foreign companies in Austria. The account team also manages the own international network GrECo nova, which acts in the interest of the clients.

Local and international know-how

As with purely national insurance solutions, international programmes also begin with an intensive examination of the risk. This is the basis for the risk financing strategy, from which the insurance principles are derived.

Specialised knowledge is required for the correct design of insurance programmes. It is important to know local regulations and special features. GrECo is in constant exchange with international partners and accesses databases to take all current trends and country specifics into account when designing contracts. This makes consultancy challenging, not least because the circumstances are developing dynamically.

Monitoring & Controlling

Central monitoring and guidance are an essential element of GrECo’s service for international clients. In this context, claims management plays an important role. Of course, our experts are also available worldwide to advise clients on site if necessary.

In addition to providing top service on global insurance programmes, the CAM team also handles regular reporting, often using its own GrECo Online Services. The decisive added value comes from quality control and analysis of the data. In addition to an accurate overview of costs, we also create a basis for decision-making. We develop all digital solutions in-house, which allows us to respond quickly and individually to our clients’ needs.

GrECo nova – surprisingly individual

GrECo nova has been working with the majority of its international partners for a very long time. This is a great advantage, as trusting relationships have been built up from this. We and our partners share the independence and identity of owner-managed companies. Moreover, many of our partners are market leaders in their home countries.

The cross-national and cross-organisational cooperation is tried and tested and based on internationally recognised service standards that regulate all aspects in a binding manner. This creates clear structures. Contractual agreements allow for enforcement where necessary. In practice, the advantages of independent selection of the local service team are even more extensive. The right broker partner is selected by the CAM team according to regionality or sector know-how and not hired via an anonymous international desk.

Turnstile Placing Hub

GrECo nova also makes mutual use of the partners’ specialised knowledge and direct access to international experts in various industries or insurance sectors, so that cooperation is lived in the sense of “best of all worlds”.

This also applies to access to capacities. Via Placing Hubs, we access all relevant international players in the insurance and reinsurance market. This allows us to individually configure the best solution in each case.

The CAM team is not only professionally active around the world, but also thinks, feels and lives internationally. This can be seen, among other things, in the universally shaped leisure time behaviour of many team members. One colleague, for example, is a passionate mountaineer and tackles the 6000-metre peaks of this world. Another colleague is a table football player with international tournament experience. In general, the team is a good mix of long-standing GrECo employees, including real GrECo veterans, and young talents, some of whom completed their apprenticeship at GrECo and were then able to develop further.

Communication skills in demand

Communication has a prominent position in the CAM team. This, of course, concerns – very obviously – language. Among the team members, there are many language talents who speak several languages at once, including Chinese. But even more than language skills, the experts need communication skills, especially when it comes to the tension between central decision-making and local implementation. In addition, in international business it is essential to understand the special features of local markets and to design an optimally adapted solution.

Flexibility, of course!

The activities of our clients on different continents require intensive travel. The experience of the last few months shows that there are unfortunately limits to the exchange via virtual channels, especially when it comes to risk consulting or claims management.

But it is not only activities that can be planned, such as risk surveys, that are carried out with élan by the CAM team. By their very nature, international groups of companies are much more frequently involved in M&A activities. It can happen that an insurance due diligence has to be prepared at very short notice, often within a few days, and/or a planned deal has to be provided with a suitable transaction insurance (warranty & indemnity).

Roland Litzinger is pleased: “I am proud of the achievements of our team of around 30 experts. We can confidently claim that our bundled competence, combined with extensive experience, is outstanding.”

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Roland Litzinger

Head of International Business GrECo Austria

T +43 664 210 50 13

Challenge is our different states with very different cultures

Tusher Thakker, CEO at PERAJ INSURANCE BROKERS talked to Jonathan Höh, GrECo nova Network Coordinator about the variety of languages in India and how excellent client service can lead to long-term client relationships.

HÖH: India will be the most populous country in the world. India has, arguably, greater linguistic diversity than any other large country. The precise number of languages spoken in India is probably over 1,000, but it is often hard to define when one language begins and another ends. How does this affect business? How do you cope with this varieties?

THAKKER: Well, the number of spoken languages, regional, folk etc. is said to be over 3000. However, we have Hindi as a national language which is taught in almost every school. Also, most schools in major cities and towns are English medium schools where Hindi is taught as a language, but overall teaching is in English. Most legal documents including insurance policies are printed in English. Language has never been a barrier in growth. In fact, India has become a huge IT hub because of a very large, young English-speaking population.

HÖH: What are the biggest risks that foreign companies operating in India need to be aware of?

THAKKER: So far, the major risk has been frequent policy changes in various sectors but that seems to have changed. The government seems to have adopted long term goals and have set up policies accordingly. Sometimes, infrastructure projects get affected when there is a difference opinion between state and central government.

HÖH: How do India risks differ from those in other countries?

THAKKER: Infrastructure is not at the same level as in Europe, the US or even China. That can be a “challenge” or a risk at some point. I would say the other “challenge,” which is not so much a risk, is that we have different states with very different cultures, different languages, and different consumer behaviour. That can be an extraordinary situation for companies that want to be present throughout India.

HÖH: What regulatory challenges are companies facing? What types of insurance are mandatory?

THAKKER: The current government is very industry friendly. A lot of new Economic reforms have been introduced and the latest budget presented on February 1st has been very well received. Non admitted cover is prohibited but some multi-national companies still rely on the master policy for D&O cover with no local policy. This can be a big issue and it is mandatory for stock listed companies to have a local D&O coverage in place. Other mandatory coverages include MTPL and a public liability act policy when storing or manufacturing certain, specified hazardous materials. The “cash before cover” law presents a challenge when it comes to global programmes as we often receive invoices / quotes very late and sometimes after renewal.

HÖH: How do you cope with these regulatory issues?

THAKKER: It is a standard practice for us to keep our partners updated with developments in India, be it regulatory or market practices. To cope with cash before cover issues, we keep regular contact with the local fronting company and global brokers well before renewals. Wherever possible (if accepted by the local fronting company) we advise the client to place deposit money, if invoices / quotes have not been received.

HÖH: Can international insurance programmes be implemented? Which special features must be considered?

THAKKER: Programmes can be implemented, all lines. Recent development however is that on PDBI local tariff rates will apply even on programme policies´. One must always remember that India has cash before cover law and that Indian clients are used to low deductibles. In general, local deductibles are much lower than programme policies for almost all lines. We closely interact with controlling brokers particularly on scope of cover. Generally, our observation is that when submitting terms to master insurers, local fronting companies often submit narrower terms.

HÖH: Please describe Peraj incoming business servicing capabilities?

THAKKER: Peraj has been in international business since 1978. We take extreme care to have a diplomatic and delicate approach with clients. We endeavour to spend time and efforts on confidence building with clients. More so when programme policies are to be implemented when local terms appear better. We try to engage clients in conversation, answer all their questions and allay all their fears and apprehensions. Generally, when the appointment is from HQ, the local client tends to get apprehensive. We give them comfort and confidence that we are by their side, to take care of all their issues. The entire team speaks fluent English in addition to local regional languages.

HÖH: Can you tell us about your most complicated case when dealing with international clients?

THAKKER: A large cement producer was setting up a very big and complicated project in this region. The quarry was being set up in the North East border of India and the cement plant was to be erected in Bangladesh, the two to be connected with a closed conveyor belt, 17 km long (longest in the world) crossing the international border and a river. North East was and is still a troubled state with Naxalite activities (insurgency group). The Bangladesh market was too small to be able to write a risk of the size the client was proposing (in fact the entire capacity was just about 5% of the requirement). Owing to challenges mentioned above, international reinsurers were unwilling to write lead terms and we had to arrange most of the capacity from India. The leading broker assigned us the task of placing the risk locally. The year was 1996 and we managed to do what was necessary. This client is still with Peraj although globally brokers have kept changing.

Tushar Thakker
Tushar Thakker is the owner of Peraj insurance broker and leads the broker as CEO and Director for more than 30 years. He is well known in the global risk management community and has strong relations to brokers around the world.

About Peraj
Peraj is the oldest intermediary services company in India for direct/retail broker related services. Peraj is a pioneer with 65 years’ experience in the industry. A very high client retention rate reflects the quality of services and the ability to service all lines of insurance. Peraj provides services not just across India but also Nepal and Bangladesh.

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Jonathan Höh

Group Sales & Market Coordination

T +43 5 04 04 396

“You need to have a detailed strategy to succeed in Japan!”

Simon Wallington, Managing Director at the GrECo nova partner Cornes in Japan discusses with Jonathan Höh, GrECo nova Network Coordinator the rise of foreign investment, regulatory issues of insurance and the importance of “hanko” in Japan.

HÖH: What role does foreign direct investment play in the Japanese economy?

WALLINGTON: By way of background, Japan has had less foreign investment when compared with most of the other major developed nations. This is mainly because for a long time, they have sought to nurture and protect their own companies until they were strong enough to trade and compete in the global markets. In some cases, foreign companies have entered the market and then withdrawn once they found the barriers too difficult to manage. For example, eBay Inc who entered the Japanese market in 1999 but had to withdraw in 2002 due to local competition. Fortunately, the situation has recently changed and foreign investment in certain industries is now rapidly increasing.

Japan is potentially a very attractive market for many overseas companies because it has a very large and sophisticated customer base of over 120 million and represents approximately 10% of the world’s economy. However, it is a tough market to break into because Japanese customers can be very demanding, with different tastes and needs requiring overseas companies to redesign or redevelop their products. Examples of this in the past have included cars, mobile phones and toothbrushes.

HÖH: What are the biggest risks that foreign companies operating in Japan need to be aware of?

WALLINGTON: The size of the market requires substantial investment and there is usually fierce competition from long established competitors (depending on the products and industry). A detailed market research and strategy is an absolute necessity to succeed in this country.

In addition, Japan has always been a very bureaucratic country with lots of regulations, permissions, certifications, procedures, offices and authorities requiring approval procedures. These don’t normally exist to such an extent in most developed countries and it requires a lot of patience to navigate through these.

On the physical risk side, Japan is reported to have around 5,000 minor earthquakes recorded per year (more than half measure between 3.0 and 3.9) and around 160 earthquakes with a magnitude of 5 or higher. Having said that, the building construction regulations are such that most of the infrastructure can withstand all but very strong earthquakes. Other natural perils such as flood, typhoons and windstorms are becoming more regular and stronger as climate changes make their presence felt.

HÖH: What are the main facts of the insurance market in Japan? How do the key indicators compare to European markets like the German insurance market?

WALLINGTON: The Gross Written Premiums of 114,818 million USD in Japan are rather low compared to 126,005 million USD in Germany. This clearly indicates that the Japanese insurance buyers do not purchase as much insurance as these other countries, in particular business interruption insurance.

The major lines of insurance include Motor (40.2%), Liability (19.6%), Property/Commercial (18.4%), Marine (4.7%) and Other (17.1%).

Additionally, the market share of the top big 3 Japanese insurers represents 86% of the Japanese premium, indicate a strong concentration and power base in these 3 insurers.

The largest Claims in FY 2018-2019 were natural disasters including eight typhoons totalling 29.3 billion USD/ snowfall 3 billion USD / heavy rain 1.8 billion USD although this is somewhat less than major earthquakes such as the Tohoku earthquake in 2011 which resulted in 15,782 killed/4,086 still missing/128,530 dwellings destroyed & losses totalled 236 billion USD.

HÖH: Can international insurance programmes be implemented? Which special features must be considered?

WALLINGTON: There are literally thousands of International Programmes in place in Japan through fronting policies for foreign companies operating in Japan. As non-admitted insurances in Japan are illegal (apart from marine, aviation, reinsurance and overseas travel), companies must have their global insurers/brokers arrange for fronting policies to be issued by either their licensed subsidiary in Japan and if they have none, then by a correspondent licensed insurer/broker.

Additionally, when purchasing insurance in Japan it should be noted that the Insurance Policy Wordings need to be first approved by Japanese FSA. In addition, the collection of insurance premiums is critical as Japan is a “cash before cover” jurisdiction and the fronting policies are only effective once the premium is paid to the insurance agency such as Cornes. Insurance premiums need to be paid by a policyholder who resides in Japan in Japanese yen and not from overseas parent companies.

Policy wordings are available in Japanese or English depending on the type of insurance and the insurer. The compliance laws in Japan require insurance agents to explain each type of insurance and get the local subsidiary’s ‘sign off’ that they understand and agree to the renewal terms even when the terms are agreed by their head office.

HÖH: What are the first steps for foreign clients regarding insurance?

WALLINGTON: Once, we at Cornes, are advised of a new client and the fronting policy(ies), we introduce ourselves to the local subsidiary’s contact and the fronting insurer(s). We then re-confirm the terms, run through the insurances with the local client representative (as required under Japanese law), raise an invoice and issue the application forms (one required for each policy every year). Japan is a “cash before cover” jurisdiction so cover commences only once we, acting as the insurer’s agent, receive the premium. Every application form requires the client’s registered “hanko” (stamp) and insurers will only accept the originals of these forms before issuing the policy documents although the pandemic and WHF restrictions has meant that some insurers accept copies for the time being.

Cornes Insurance Agency prides itself on its professionalism and we have established a comprehensive servicing and follow-up system in place to ensure we give every client a friendly and professional service. Our incoming business service capabilities are our lifeblood and we insist that all account managers have a minimum level of English. In addition, we currently have two persons who can also speak and write Spanish and one who can write and speak German.

Our insurance license enables us to not only manage the client’s general and financial risk insurances but also assist them with their Employee Benefit insurance needs – two of our account managers used to work for Japanese Life Insurance companies. All account managers are required to pass the Japanese Insurance Agency exams before being allowed manage clients. In terms of our international business experience, we have an average of 10 years per account manager.

Simon Wallington

Simon holds the title of ACII from Chartered Insurance Institute as well as the NIBA diploma that allows him to practice as an insurance broker in Japan. He worked in 3 different countries starting in London as a trainee in 1977 before becoming account manager and then moving to Tokyo in 1985 where he was branch manager at Sedgwick. After just over 5 years in Tokyo he transferred to Sydney where he managed a portfolio of corporate clients. Afterwards Simon joined JLT as Director of Asian Business Development. His role soon extended to include local Australian and European clients, such as major Japanese and Korean corporate conglomerates. Since 2010, after working for InterRISK in Sydney for 5 years, he joined Cornes as Managing Director responsible for all aspects of the Insurance Division.
Email: simon.wallington@cornes.jp
Phone: +81 357 301650
Mobile: +81 804 2004459

About Cornes
The Cornes business was founded in Yokohama more than one-and-a-half centuries ago in 1861 by Frederick Cornes and his partner, William Aspinall. Initially trading in silk and tea, the business quickly expanded to include the import of cotton, metals, consumer goods, coal and other raw materials. The company was also a pioneer in the Japanese insurance market starting with its appointment in 1868 as the first Lloyd’s agent in Japan – a position that is still held today. With the development of its maritime and insurance operations, Cornes paved the way for new services-based industries in an age when business was still dominated by trade in material goods.
The 25 employees in the insurance division located in Tokyo and place over 26 million EUR premiums into local and international insurance markets. The insurance division of Cornes has specialised knowledge and expertise across several industries enabling clients to benefit from tailor made programmes that extend beyond the market’s standard insurance products. They look after over 700 clients with global programmes ranging from property & liability, cyber and D&O to Group Life Insurances working in conjunction with the global brokers and agents overseas.

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Jonathan Höh

Group Sales & Market Coordination

T +43 5 04 04 396

Ensuring compliance of international insurance programmes: Eurasian countries

Before the collapse of the Soviet Union and the declaration of independence of many former CIS countries in the early 1990-years, two state companies had a monopoly for all insurance business. Ingosstrakh wrote all reinsurance and international insurances requiring hard currency and Gosstrakh, sometimes via its branches of the Soviet network, covered domestic risks that could be insured internally.

Since gaining independence, the Eurasian countries have substantially been replacing and modernizing their insurance legislation inherited from the former Soviet Union. However, compliance with local legislation remains complex for multinational companies covered by international insurance programmes.

In general, there are multiple ways to cover a Eurasian risk of a multinational corporation under an international insurance programme. One can purchase insurance locally if the market capacity allows or install a local fronting policy and reinsure the risk to a central capacity provider. Other possible solutions include non-admitted insurance or coverage via a financial interest clause.

Local Market Placements

As in some other post-Soviet economies, insurance spending in % of GDP remains quite low, also impacted by constraints in macro-economic conditions, restricted bank lending, and currency devaluation. This results in market premium primarily depending on the compulsory classes of property and MTPL, supplemented by voluntary premiums across all classes related to the major corporate businesses in the oil, gas, energy, real estate and construction sectors.

However, usually local market capacity is not enough to cover large corporate risks of foreign direct investors. Additionally, the wordings do not match the standard of Western European countries and regulatory complications, such as the required filing of forms with authorities, make local market placements difficult or impossible. Therefore, brokers advising multinationals with business interests in Eurasia try to organize global coverage.

Non-admitted Insurance

Non-admitted insurance refers to placement of risks outside the regulatory system of the country where the risk is located and by an insurer that is not licensed in that country. Non-admitted insurance is not permitted in almost all the former CIS countries because the law provides that insurance must be purchased from locally authorized insurers. There are only some minor exceptions for highly specialized risks such as Marine and Aviation.

One exception is Armenia where a foreign insurer can transact business through its locally registered branch, which does not need to be locally capitalized. While foreign insurers are not allowed to market their products in Armenia without having a local license, anyone can buy, quite legally, a non-admitted policy. This is not market practice, and there might be significant practical obstacles for corporate businesses, such as not being allowed to consider non-admitted insurance premium as tax-deductible, and potentially having to treat incoming claims payments as income subject to local taxation.

When it comes to non-admitted insurance, the requirements of the law appear to be adhered to, since it is difficult to effect insurance other than with the locally licensed insurers in the absence of exchange control facilities for non-admitted placements. However, international firms that operate in the Stan-countries (Afghanistan, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, Uzbekistan) are likely to arrange most of their insurances on a worldwide-program basis, placing only those parts of their covers with the local markets that they are absolutely obliged to. Technically, this may be strictly illegal under local law in some countries, since even DIC and DIL (Difference in Conditions/Difference in Limits) covers seem to be proscribed. But, certainly in the case of liability master covers, and particularly when neither premium nor claims recoveries are recorded through local accounts, the law is difficult to enforce.

In the strictly controlled economic and political environment, purchasers of non-admitted insurance are likely to face severe penalties for breaches of the law. Another potential solution could be central coverage via a financial interest clause.

Financial Interest Clause

A financial interest clause (FINC) is a provision within a global or master policy that covers the parent company’s diminution of financial interest when losses are suffered by its worldwide subsidiaries. A loss suffered by a subsidiary causes a reduction in the value of the parent’s financial interest in the subsidiary, for which the parent is indemnified under the FINC in its home country.

However, these are the top 4 limitations to keep in mind:

  • First, because the parent is the only insured under the FINC and the subsidiaries are not actually insured, claim payments must be made to the parent and not the local subsidiary that faced the damage.
  • Second, since the local subsidiaries are not the insureds, providing evidence of local coverage to third parties is not possible.
  • Third, any recovery under the FINC is limited to the parent’s interest, while the subsidiary’s actual loss could be greater than the parent’s financial interest loss.
  • Fourth, no premium should be allocated to or paid by local subsidiaries.

Given the above limitations, GrECo believes that local policies are the most secure option facilitating compliance, local servicing and claims payment in most jurisdictions, including the highly regulated markets of Eurasia. To overcome the capacity restrictions of local insurance markets, fronting solutions are the most feasible option.

Fronting

Fronting is a recognized feature in Eurasia for many of the larger risks, particularly those with an international connection, because of the general prohibition of placing non-admitted cover.

In most cases state insurers are the only authorized insurers in the country and should a risk require to be fronted, it would have to be through these companies. Some of the state insurers might require assistance in producing wordings for the more complicated risks but welcome every opportunity for involvement in international risk. This is not only for the premium it produces, but also for the access it affords to product innovations that might be turned to commercial advantage in the indigenous market. In the rare cases where there are also foreign licensed insurers the process is much easier since those are usually set up for this specific purpose.

Fronting, and reinsurance generally, are usually subject to a statutory minimum retention by the cedant, and in certain cases, subject also to a withholding tax. In some Eurasian countries the local law requires (re)insurers or reinsurance brokers to offer a certain percentage of the risk to domestic reinsurers before offering the risk to foreign reinsurers. Reinsurers used must have a good credit rating, usually better than A- or B+ Standard & Poor’s or AM Best. Additionally, the state insurers will require a fronting fee, usually in the range of 2.5% to 7,5%.

GrECo Eurasian Desk

Deciding on how to cover exposures in countries with a very specific and strict local legislation is always a balancing act between central control and local compliance. GrECo can be your one-stop-solution for covering the Eurasian countries, which have a challenging trading environment. We have established a regional entry point to provide top solutions and always deliver our high service standards. We coordinate the business via our Eurasian Desk in Moscow while in the various countries, GrECo has established partnerships with leading local brokers. This way we provide constant servicing and ensure uniform reporting to our clients.

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Jonathan Höh

Network Coordinatoron

T +43 5 04 04 396

Ante Banovac

Head of Group Sales & Market Coordination

T +43 5 04 04 372

The Transition of Insurance Markets in Eastern Europe

Since the 1990s, countries of Central-, Eastern-, and Southeastern-Europe have largely been transitioning to market economies with democratic forms of government and now participate in global markets for goods and services.

Starting of the Transition

The general transition also concerned the insurance market. Drastic changes had to be made to break insurance monopolies which were in place during the communist era as part of fiscal authorities. Existing insurers were first converted into state-owned companies and then privatized. While this transition was taking place, also new, privately-owned insurers appeared on the markets in all parts of Central and Eastern Europe. However, the former monopolists held on their dominant market share for several years and in some markets are still the major players. This transition was characterized by the high pace of foreign direct investments, also into the insurance market. The number of insurers controlled abroad remains high, even today.

Joining the European Union

One additional major factor in the development of the insurance markets is also the accession to the European Union. By today, most of the countries in CESEE have joined, or are in discussion to join, the EU. Accession compelled the adoption of European Union standards including the ban on state monopoly, liberalization of market access, abolition of price and product controls, as well as finance-related issues such as adoption of EU solvency regulations, tightening of capital adequacy requirements and strengthening insurance market supervision. This included full market access for companies from other EU members which translates to regular use of Freedom of Service coverages in those countries.

Despite the rapid transition towards a free and fully EU-compliant insurance market, the insurance density and insurance penetration are significantly below Western European standards. For example, annual insurance premium per capita is above 2.000 EUR in Austria and in Eastern Europe only between 50 in Albania and 1.000 in Slovenia with an average of 450 EUR.

Main players and impact of foreign insurance groups

During and prior to accession the impact of foreign insurers was significant, as most insurance market leaders in the countries joining the EU in 2004 were owned by foreign companies with Allianz as leading foreign insurance group being the prime example. As of 2018, the major insurance group in CEE is Vienna Insurance Group (VIG) with a presence in 21 countries and a GWP of more than 5 billion EUR in those countries. Of the Top 10 non-life insurance groups operating in Eastern Europe eight are foreign owned. The same goes for the life insurance sector.

The major local players are PZU in Poland and Triglav in Slovenia which both have their roots in state owned monopolies from the communist area. The main foreign investments in the Eastern European insurance markets stem from Europe, namely Austria, Germany, Italy, France and Benelux. Other, less prominent players are groups from the US, Canada and the UK.

Consolidation of the insurance market

In recent years, a trend towards consolidation can be observed. This is due to the very granular structure of the market with multiple rather small countries and unfulfilled growth expectations.

One recent example is Uniqa’s acquisition of the AXA subsidiaries in Poland, the Czech Republic, and the Slovak Republic. This 1 billion EUR merger further strengthens Uniqa’s footprint in Central Eastern Europe while concluding AXA’s withdrawal from the region. “For us, the growth markets in Central and Eastern Europe are our second home market. With the purchase of the AXA companies, the profitable retail business and balanced product mix perfectly match our long-term growth strategy, we are now one of the leading insurance groups in the CEE region,” comments Andreas Brandstetter, CEO of UNIQA Group.

On November 29th 2020, Vienna Insurance Group signed a share purchase agreement to acquire the entities of the Dutch insurer AEGON in Hungary, Poland, Romania and Turkey.
 “The acquisition of the Central and Eastern European business of Aegon is an important step for our Group to sustainably strengthen our leading position in CEE and to take advantage of new opportunities. In Hungary, we are making the leap to the top. In Turkey, we succeed in entering the life insurance market and in Poland, Romania and Hungary we can significantly expand our potential in the pension fund business,” says CEO Elisabeth Stadler about the successful deal with Aegon.

Smaller mergers and acquisitions in 2020 happened in various other countries, such as Romania, where Allianz acquired Gothaer Romania.

Increasing Interest for Corporate Insurance

The insurer landscape and insurers’ risk appetite is undergoing dynamic developments in the CEE region. While the main focus for insurers remains on profitable private lines and standard product offerings for small businesses, an increasing interest for corporate risks can be observed also among pure local insurers.

Due to relatively moderate local capacities and consequently relatively low retentions, usually ranging between 20 and max. 50 million EUR depending on the risk, structured reinsurance is regularly needed when incorporating covers. This trend is expected to continue as corporate clients’ risk awareness increases. Sometimes it reaches Western European standards already today. This will most likely pave the way for specialty risk advisory to become more sought after in the years to come.

30 years of experience in CEE

GrECo has been operating successfully in CEE for over 30 years and today is the leading corporate risk advisor and insurance broker in the region. Over the decades close ties to group management of all insurance companies in the region have been established and are being constantly nurtured. This is the basis for swift and competitive implementation of sophisticated tailored covers for our clients.

With our strong presence in 16 countries via owned offices, excellent insurer relations and profound operational expertise GrECo is in a prime position to deliver first class specialty placements. Our international expertise also allows us to implement fronting solutions for multinational clients efficiently. This is making us the first choice for independent international partners around the world.

We have experienced the transitions of the insurance markets first hand. Having been in the region for over 30 years we have gained insights we are happy to share with our partners.

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Jonathan Höh

Network Coordinatoron

T +43 5 04 04 396

Ante Banovac

Head of Group Sales & Market Coordination

T +43 5 04 04 372

„Great potential for the insurance culture in Mexico“

Interview with the insurance broker Howden Mexico

Jonathan Höh of GrECo nova (a global network of insurance specialists) spoke with Howden Mexico about major risks facing foreign companies and the specifics of the local market.

According to statistics, Mexico employs 61% of the workforce in the service sector, which accounts for 60.1% of GDP. The technology-, information- and software development-sector in particular is growing due to the good quality of the workforce and low operating costs. But medical services and tourism are also growing faster than in Western countries thanks to low service-costs. In 2018, Mexico recorded a record number of visitors, estimated at 41.4 million according to the Ministry of Tourism.

Although, according to the Mexican Association of Insurance Institutions (AMIS), the insurance sector recorded a real increase of 5.37% in the first quarter of the year compared to the same period last year, the declines were significant in some sub-sectors such as automobile and accident insurance. In addition, a general decline in business of 5.4% is expected at the end of this year or in the beginning of 2021. Currently all companies in the insurance-sector are suffering from the low demand and also affected by reorientations in their business-activities.

HÖH: Can you tell us some of the key facts about the Mexican insurance market?

HOWDEN MEXICO: The insurance culture in Mexico is weak, so the growth potential is very high. Per capita-insurance-consumption in Mexico is low, compared to other Latin American countries and lags behind Brazil, Argentina, Chile, Colombia – and even Peru. It is important to make insurance accessible to the people by developing technological business strategies. A large part of the population does not even know where to buy insurance.

The insurance with the highest penetration is car-insurance, with 30% of the total fleet of vehicles in Mexico, mainly because a significant percentage of cars are bought on credit and insurance is therefore required. Immediately after this comes life insurance, with a penetration of 10%.

HÖH: What are the biggest risks for foreign companies?

HOWDEN MEXICO: The risk for foreign companies is primarily the legal uncertainty and – due to the current crisis – also the economic uncertainty of the country. We also have a considerable risk of natural disasters such as hydro meteorological risks and earthquake risks. Another risk is the high theft of vehicles and goods. And the health-risk should not be underestimated: too high a proportion of the population suffers from obesity.
In 2017, Mexico ranked fifth in the world in terms of losses due to cyber-attacks, with financial institutions accounting for 20% of these losses. Recently, some banks were again the victims of a cyber-attack that caused almost 300 million pesos of damage (editor’s note: approx. 11.5 million EUR). Therefore, one of our greatest concerns is operational-security and that the information of companies offering services or products online is protected.

HÖH: Can international insurance-programs be implemented? And how does Howden Mexico provide customer service, how do you coordinate with the controlling brokers?

HOWDEN MEXICO: Insurance-programs can be implemented for companies that have are a representative office, partner or a branch of a firm headquartered in other countries. In particular, the requirements for quality, service and KPI standards must be taken into account. This requires a structure with a solid, dedicated and experienced support team for large and/or international business as well as representative offices in the countries of the respective regions. Currently, we have established an international business area within Grupo Ordás Howden that largely meets these criteria. Customer service is provided through the signing of a service-agreement, which is reviewed with the customer at least once a month. The coordination through the controlling broker is coordinated through written agreements, emails, telephone and video conferencing.

HÖH: How many years of experience has your team in international customer service?

HOWDEN MEXICO: We created the capacity for the international insurance business two years ago. The team consists of two people, Vice President Arlen Cooper and a senior executive, Perla Hurtado. Both speak English and have years of experience in international business. Arlen Cooper has been in the insurance business for 15 years and Perla Hurtado for ten years.

HÖH: What about the strong automotive sector in Mexico? Do you have proven capacities for this sector, and what specifics have be taken into consideration here?

HOWDEN MEXICO: Grupo Ordás Howden has a large team in the automotive sector. We are leaders in the insurance market here. This year, however, it will be a major challenge for Mexico, which relies heavily on the automotive sector, to recover and reach pre COVID-19 levels.

HÖH: What regulatory challenges are Mexican companies facing? What types of insurance are mandatory?

HOWDEN MEXICO: Currently, Mexico does not have clear and specific regulations, so the biggest challenge is to maintain information security even without these regulations. Since April 2013, the only compulsory insurance that exists in Mexico is car liability insurance.

HÖH: How high is the tax burden in Mexico, and how strongly does it affect the activities of insurance brokers?

HOWDEN MEXICO: Currently, companies in Mexico must pay 30% income tax plus additional 10% of dividends and 10% of employee profit sharing. However, companies do have access to deductions and often end up with lower rates.

Insurance policies are tax deductible. For example, no value-added tax is levied on life-insurance policies. This is an advantage for companies and it is the responsibility of brokers to point this out to companies.

Arlen Cooper I Vice President International
Phone: +55 797 81083, email: acooper@ordashowden.mx

Grupo Ordás Howden
Founded in 1982, Grupo Ordás Howden is a leading company in the Mexican insurance market with strong expertise in all lines of insurance. Headquartered in Mexico City, the company is characterized by a strong client focus, exceptional talent and an entrepreneurial ethos. In addition to expertise in motor insurance, an experienced international desk and industry practices, an impressive technology platform helps to provide even better solutions to customers in many different lines of business.

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Jonathan Höh

Group Sales & Market Coordination

T +43 5 04 04 396

Around the world …

The COVID-19 pandemic has made at least one thing clear: the risks for business travellers are on the rise. However, it remains interesting for SMEs to extend their radius of activity, as global sales channels offer financial opportunities. But it is advisable to take a few precautions.

Business travellers are usually focused on their task and do not think too much about their own risks before taking a trip – if it doesn’t actually involve Iraq, Syria or other conflict zones or if, unlike recently, a pandemic breaks out, there are still the risks of infections and of borders being closed.

Companies often neglect their legal duty of care. This was the case with Mr L. who was meant to be taken from the airport to his hotel by taxi in an Eastern European country. At a red light, two men got into the vehicle all of a sudden and threatened him with a weapon. Mr L. abruptly realised the seriousness of the situation. He was kept at a remote location for five hours, beaten and forced to disclose passwords and the PIN codes for his credit cards – in what is known as an “express kidnapping”.

In South America, the perpetrators often sell the victim on to criminal organisations if they consider that this would be “lucrative”. The hostage then has a higher going rate and the holdup becomes directly an abduction with a ransom demand.

Professional crisis management plays a major role in an abduction where a person’s life is at stake. Only very few companies have their own corporate security or experience with these sorts of incidents.

Kidnap & Ransom insurance

Travel safety means being prepared and planning the first steps before you start your trip. Country information from authorities and private service providers is available online on different platforms. They mainly provide a good general overview of the relevant risks, but are not a “cure-all”. It is very important for the traveller to remain alert, and this can be ensured through travel safety training with advice on assessing realistic dangers, cultural factors, what to do in the event of criminal attacks, and how the traveller can personally detect and defend himself against attacks.

Kidnap and ransom policies not only cover payment of the ransom, but also the costs of crisis consultants, recovery or evacuation and other additional services. As part of their duty of care, insurers also sometimes offer preventive training by professionals or preparatory guidance for travellers. The trend within the DACH region is clearly moving towards crisis consultants from German-speaking countries. Their understanding of economic, legal, linguistic and cultural requirements guarantees a reasonable basis for cooperation in a spirit of trust. A 24/7 crisis hotline helps with managing unpredictable events.

Andreas Radelbauer
CEO
Corporate Trust
T +43 1 318 0151 0
info@corporate-trust.at
www.corporate-trust.at

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Andreas Krebs

Andreas Krebs

Head of Insurance Mediation Services

T +43 5 0404 229

Special features of Insurance in Slovenia

Damir Pelak, General Manager and Jurij Rožej, Head of International Business at GrECo Slovenia talk about the exceptional COVID-19 year, a well-developed insurance market and some specifics of taxes in Slovenia.

How do the current political developments and economic conditions in Slovenia influence the insurance industry and clients’ risks?

PELAK: Currently we have a center-right Government, led by Slovenian Democratic Party (SDS) in coalition with three other parties. Despite a fragmented political scene, the government appears currently stable. We have a sharp economic contraction and unfortunately a return of fiscal deficits. Our GDP growth is a bit above the EU average, at 2.4% (for 2019).

This year Slovenia’s large tourism sector is exposed to weak consumer confidence across the EU and ongoing travel bans. But the COVID-restrictions also influence the supply-chains of other industries that are closely tied with the Italian, German and French Industry. This presents also a further source of vulnerability.

In which economic segments/industries do you expect increasing investments in the coming years?

PELAK: Due to COVID-19 Situation most likely everyone will be focused to stabilize their operations and planning slow investment increase. In 2021 focus will be to preserve tourism active and there will be few huge construction projects such as Highway and Railroad developments, which will also have positive influence on future operations of Slovenian Blue chips. There is also focus in digitalization and going into direction of being green and energy self-efficient.

What are the biggest risks foreign companies doing business in Slovenia need to consider?

PELAK: They should be prepare on time consuming and over demanding admin processes of public services. Foreign companies should also expect huge taxation on a labor costs but also, which might be interesting, a quite low corporate profit taxation.

How do Slovenian risks differ from those in other countries?

PELAK: Slovenia is geographically and economically well positioned to be a hub for SEE region. In four to five hours by car you can either be in in Vienna, Munich, Venice, Belgrade or Budapest. We have a very low criminal rate and therefore Slovenia is a very pleasant place for young families.

What are the main facts of the insurance market in Slovenia?

PELAK: Although we are small as a country – only 2 million citizens – we can say we are one of the best developed insurance market in SEE. Last year it was over 2,5 billion EUR collected premium, which represented 5,2% of GDP. Non-life represented 70% share of total collected premium.

In last few years we had few mergers between local insurers on the market (e.g. Triglav), ERGO and AXA XL step out from the market. So currently we as brokers are missing broader options of insurers on the market.

What specifics differ from those in other countries?

PELAK: Mostly it is almost the same as in other EU countries. A slight difference is, for example, that as a Registered Broker Legal Entity you are not allowed to deduct a VAT from income or from invoices. Additionally, as an insurance broker you have to pay 8,5% tax of each earned commission.

Brokers account for about 10% of all corporate insurance sales in Slovenia. Is the share the same in life business?

PELAK: No, it is significantly less. Most life insurances are done by Insurers or Insurance Agencies.

How about GrECo Slovenia? How does your approach differ when it comes to Employee Benefits?

PELAK: We are able to provide all services in the area of Employee Benefits our clients require. Additionally, we are focused on Specialties such as Trade Credit, Construction, Aviation, Transport and Affinity.

Can international insurance programs be implemented?

ROZEJ: Yes, they can. Sometimes it is done directly based on FOS – Freedom of Service but mostly we are being supportive to our partners as local service brokers.

How do you ensure excellent client servicing? How do you coordinate with the controlling broker?

ROZEJ: We are fully complied with GrECo service standards, which means “top notch” service provider.

Please describe GrECo Slovenia´s incoming business servicing capabilities?

PELAK: We have a team of eight people, who can handle international business. All of us are fluent in English, but we can also provide services in Italian, German, Serbo-Croatian and Macedonian language. In average the team has 8-10 years’ experience in the insurance business.

When was the last (most recent) bankruptcy of an insurance company in Slovenia? What impact did this have? How do you made preparations to minimize the effects on your clients?

PELAK: As I can remember, it never happened. The Slovenian Insurance Market is well developed and has a long lasting tradition. The majority of insurers have at least Credit Rate A (by S&P) and they are also well prepared based on Solvency II conditions.

Where do you focus on when advising clients and what special expertise have you developed?

PELAK: If we exclude international business, because most of this is already arranged by controlling brokers and we focus on our consulting them, I can say that we are eager to find or develop “tailor made” solutions for our clients. We are avoiding as much as possible using Generic Insurance or as called “Insurance solutions from the shelfs”. We are also putting a lot of energy to be specialized on claims, so we can fully support our clients in those difficult situations.

We have already implemented the Specialties Trade Credit, Construction, Aviation, Transport and Affinity.

Damir Pelak

Damir Pelak

General Manager
GrECo International d.o.o., Slovenia

Damir has a BSc degree in Mechanical Engineering from the University Ljubljana. He started his career at Zavarovalnica Triglav as Corporate Loss Adjuster, then he was responsible for corporate claims and Risk Surveys reports at Allianz. From 2012 – 2015 Damir was President of Special Committee for Fire and Burglary Insurance lines and Member of Special Committees for CAT and Property Claims at SZZ-Slovenian Insurance Association. In 2014 he started his studies of Technical Safety. 2016 he joined GrECo the GrECo Group.

Jurij Rožej

Jurij Rožej

Head of International Business
GrECo International d.o.o., Slovenia

Operational management and care for local and international insurance business. After graduating in organizational sciences Jurij began his career in Triglav Insurance company and today has 20 years of experience in the field of property insurance and 12 years of experience in insurance claim management. He is a specialist in property, liability and automotive insurance and from 2009-2011 he was the head of key clients for the largest construction companies in Slovenia. In 2017 he joinded GrECo as Account Manager.  

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Jonathan Höh

Group Sales & Market Coordination

T +43 5 04 04 396

A recap on insurance in Serbia

Dušanka Talić, General Manager and Valentina Stokić, Head of Risk and Insurance Technics of GrECo Serbia talk about a demanding local administration, life insurance and the importance of construction and infrastructure projects.

How do the current political developments and economic conditions in Serbia influence the insurance industry and clients’ risks?

TALIĆ: Until the very beginning of the upcoming COVID-19 crisis, the economy showed clear and strong development. Namely, the GDP growth in 2017 was 1.9% and it continued to grow by 3.5% and 4% in 2018 and 2019, respectively. In the first quarter of 2020 the GDP growth was even more significant with 5% , but, in the second quarter GDP dropped 0.6% compared to last year. It is expected that GDP growth will drop 2-2.5% by the year end.

Current political and economic developments have a positive influence in the insurance industry which was growing in the last ten years-not only in terms of premium but also in terms of different insurances provided by insurers, namely liability and constructions risks.

In which economic segments do you expect increasing investments in the coming years?

TALIĆ: The biggest driver of economic growth is construction, than industrial production while the more stronger development is expected to happen in agricultural area. Big infrastructural projects like highway and speed railway construction were among the strongest drivers of Serbian industry. Also, there are visible investments in mining and energetic sector while government is putting lot of efforts to develop agricultural sector through numerous subventions and incentives.

Many other big investors are expected to come via government actions and policies, especially in tax segment via tax reliefs for foreign investors.

What are the biggest risks foreign companies doing business in Serbia need to consider?

STOKIĆ: Although it improved a lot, the biggest risk is slow and very demanding administration.

What are the main facts of the insurance market in Serbia?

TALIĆ: In 2019 the insurance market grew by 7.5% and the total premium reached 914 million EUR. The total share of non-life insurance was 76.7%, while life insurance accounted for 23.3%. Three lines of non-life insurance have the biggest growth: health insurance, liability and casco insurance.

During the first quarter of 2020 the growth of insurance premiums was even stronger. Obviously, the legislation activity of the National Bank of Serbia regarding firm control of all market participants and reduction of number of the participants on the market showed positive results.

Corporate insurance is dominant with almost 80% in total premium. Important insurance lines are mandatory third party motor insurance 32.9%, life insurance 23.3%, property insurance 18.7% and other non-life insurance-15.4%.

We can see a fast development of voluntary health insurance since the public health sector cannot cope with the many challenges modern medicine brings. Demand for all types of liability insurance is growing as infrastructure projects keep growing.

What specifics differ from those in other countries?

STOKIĆ: For the last few years, the National Bank of Serbia has been making efforts to harmonize the local regulations with the EU. Still there are some variances which make the local market specific: It is required for insurance companies and brokers, to be registered as domestic legal entities with full initial capital down payment and every risk must be covered via a local insurance company.

Brokers account for about 12% of all corporate insurance sales in Serbia. Is the share the same in life business?

TALIĆ: Over 95% of the total broker sales comes from non-life insurance. Insurance law allows banks and leasing companies to found an agent company which enables them to receive regular commissions in life insurance. Also, since individual life insurance is done mostly via insurance entrepreneurs, brokers have a minimal share in the life insurance sales on Serbian market.

The brokers market share is growing year to year due to state companies requiring brokers more as insurance providers and risk advisors and the growth of foreign investments with foreign companies being used to brokers as insurance intermediaries.

Can international insurance programs be implemented?

STOKIĆ: As already mentioned, international programs are carried out in accordance with local legislation. Excellent client servicing is provided via our Account Managers who are in active contact with, both, clients and controlling broker representatives.

Please describe GrECo Serbias incoming business servicing capabilities?

STOKIĆ: The team of GrECo Serbia consists of 11 professionals with more than 10 years of experience in insurance business each. All of them speak English language. The team is dedicated to service international clients. Since GrECo Serbia is recognized as the main insurance broker in infrastructural projects, especially for Chinese investors, we are able to respond to the specific risk requirements.

When was the last bankruptcy of an insurance company in Serbia? What impact did this have? How do you made preparations to minimize the effects on your clients?

TALIĆ: There was no bankruptcy of insurance company for more than 30 years. In 2001 and 2002 a couple of domestic insurance companies went through a liquidation process and their obligations had been paid through guarantee fond since these were companies dealing mostly with MTPL.

This had a short term effect on clients´ trust and confidence. A legal framework provided by National Bank of Serbia via the Insurance Law managed to regain trust in short notice. The new Insurance Law from 2016 provides mandatory details insurance participants have to provide in order to avoid disputes.

Where do you focus on when advising clients and what special expertise have you developed?

STOKIĆ: Since the economy growth is mostly driven by foreign investments in construction of infrastructure and commercial projects, we are mainly focused on the respective expertise. We developed our specialty team for construction and energy industry and this enables us to provide the best service and tailored solutions.

The other significant potential is in financial lines. Companies with various business activities face greater exposure arising from the provision of their services, as well as exposure to cyber-attacks. We are developing a specialty team in order to be able to provide the Clients with technical advices they need and to offer them appropriate insurance solution.

Dušanka Talić

Dušanka Talić

General Manager
GrECo International doo, Beograd

Dušanka has a master’s degree in economics and more than 11 years of experience in insurance. Until 2009 she worked in banking sector and other firms in the field of finance. In 2009 she founded and developed a company for insurance intermediation which was recognized as a firm that has quality experts, clients and development strategy compatible with GrECo Group. In 2016 GrECo Group bought her company and they combined expertise, knowledge and processes.

Valentina Stokić

Valentina Stokić

Department Manager
GrECo International doo, Beograd

Valentina graduated from the Faculty of Economics at University of Belgrade. Working in GrECo for 15 years, she has gained large experience in insurance business in various insurance lines such as property, financial lines and financial institutions, employee benefit, liability on the Serbian as well as on the international market.

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Jonathan Höh

Group Sales & Market Coordination

T +43 5 04 04 396