Reassurance Market as Resource for Development in CIS

Reassurance Market as Resource for Development in CIS

Miroslaw Kowalski LLIF

Director

Head Moscow Offie, Russia & CIS

Life & Health

Swiss Re

Life&Health Swiss Re20, 21 June 2007

Agenda

Introduction & history

Principles & Organization

Competitive strengths

Facts , figures & Outlook

Life&Health Swiss Re20,21 June 2007

Swiss Re Services

L&H in Central Eastern Europe (CEE)

Global presence

Offices in more than 30 countriesLife&Health Swiss Re20, 21 June 2007

Swiss Re Group at a glance

Net income amounted to CHF 1.5 billion

Premiums earned amounted to CHF 27.8 billion

Total investments amounted to CHF 114.9 billion

Leading position in P&C reinsurance

Leading L&H reinsurer

Leading provider of insurance-linked securitisation solutions

Highly diversified portfolio by region and by line of business

Proven expertise in risk and capital management

Strong corporate culture based on over 142 years of experienceLife&Health Swiss Re20, 21May 2007

Agenda




Facts , figures & outlook

Life&Health Swiss Re20,21 June 2007

Swiss Re services

L&H in Central Eastern Europe (CEE)


Client base

Financial strength

Knowledge

Expertise in capital and risk

Comprehensive product and service offering

Global presence

Balanced portfolio

Geographical diversification

Global leadership position


Client base

Property and casualty insurance companies

Life insurance companies

Captives

Large corporations

Financial institutions

Institutional investors

Reinsurance

Financialservices

Life&Health Swiss Re20, 21 june 2007

Knowledge and expertise – Swiss Re’s publications

Swiss Re’s publications

sigma series

www.swissre.com

risk perceptionseries

focus reports

risk dialogue series

Long-established and proven expertise

Extensive research and focused innovation

Exceptional working and learning environment


Expertise in capital and risk

Risk transfer

Balance-sheetmanagement

Single risk Whole company

Portfolio of risks Reinsurance underwriting Risk management services Claims

Enhance underwriting capacity Optimise use of capital Stabilise after-tax earnings Improve ROE Optimise cash management


L&H in Central Eastern Europe (CEE) as an example for CIS


Swiss Re Services

Macroeconomic Situation

Premium Volume

Growth

Portfolio Mix

Perspectives

Major Players

Only1% of the European Life Insurance is written in CEE

EUR bn

Share of CEE in EuropeGDP: 12%NL: 8%L: 1%

2006 preliminary figures

Russia: Life Insurance without salary scheme business

Source: Economic Research & Consulting

11831 399738

1637 3311

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GDP Non-life insurance Life insurance

Western Europe Central & Eastern Europe


90% of the regional Life Premium Income is generated in Central Europe

GDP 2006: EUR 1`637bn

Life Insurance Premium 2006: EUR 11.1 bn

Russia: without salary scheme business, preliminary data

Sources: WIIW, Insurance Regulator, Insurance Association, Swiss Re Economic Research & Consulting

CEE33,1%

Rest of Eastern Europe21,8%

Russia45,2%

Rest of Eastern Europe10,0%

Russia2,7%

CEE87,3%

almost 2% of Gross Domestic Product is spent for Life Insurance

0%

1%

2%

3%

4%

5%

6%

7%

Kaz

akhs

tan

Rus

sia*

Ukr

aine

Rom

ania

Bul

garia

Cro

atia

Slov

akia

Cze

ch R

epub

lic

Hun

gary

Slov

enia

Pola

nd

EU15

Ger

man

y

Gre

ece

Life Insurance Premium/GDP (2006), preliminary data

Sources: Insurance Regulator, Insurance Association, Swiss Re Economic Research & Consulting

* Russia: Without short term salary scheme business


…the Share of Risk is accordingly low

2006 Data

Source: Swiss Re Economic Research & Consulting

EUR bn

0

1

2

3

4

5

6

Poland Slovakia Czech Republic Hungary Russia

Savings Component Risk Premium

* Russia: Without short term salary scheme business


Foreign Insurers dominate theLife Insurance Business

0% 20% 40% 60% 80% 100%

Slovakia

Hungary

Czech Republic

Romania

Croatia

Poland

Ukraine

Slovenia

Market share of Life Insurer with foreign contribution of capital of 50% or higher (2004)



Strong economic growth expected

Sources: WIIW, Oxford Economic Forecasting Ltd, Swiss Re Economic Research & Consulting

Life&Health Swiss Re

20, 21 June 20070% 1% 2% 3% 4% 5% 6% 7% 8% 9%

Hungary

Slovenia

Czech Republic

Poland

Russia

Slovakia

Kazakhstan

Ukraine

Compound average growth rate (2007-2010) Real growth 2006

Wealth will increase – departing from low levels

0

10

20

30

40

50

60

70

80

90

100

Mac

edon

ia

Ukr

aine

Rom

ania

Bul

garia

Rus

sia

Pol

and

Slov

akia

Cze

chR

epub

lic

1995 2000 2005 2010 2015

Life&Health Swiss Re

20, 21 June 2007

Source: WIIW

EU-15 averageGDP per capita

at Purchasing Power Parity

Central Europe with two digit Growth Rate

Index 1991 = 100


CAGR 1992-2006

11%

-18%

15%

0

100

200

300

400

500

600

700

800

900

1000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006P

CE Remaining part of Eastern Europe Russia

Strategic challenges Key issues

Market entry of international companies

Competition Consolidation/M&A

Development of insurance infrastructure

New exposures, higher sums insured

eg mortality risk

Incentives for private sector solutions

Implement best practice regulation

Data

State support & regulatory State support & regulatory compliancecompliance

Fast evolving insurance Fast evolving insurance corporate landscapecorporate landscape

Insurance risks and risk Insurance risks and risk transfertransfer

Strategic challengesIn

cre

ase in

su

ran

ce

pen

etr

ati

on

Agenda




Facts , figures & Outlook


Swiss Re Services

Swiss Re L&H in Central Eastern Europe (CEE)

Swiss Re Services

Swiss Re is well-known for services provided to its clients based on needs and combines in-depth global expertise with a local focus, tailored to the individual demands of our clients

As most members of our life reinsurance marketing teams are qualified actuaries, our clients are in a position to receive regular on the spot actuarial advice, as well as benefiting from discussions with a well-informed technically-able partner.


Swiss Re Services

Design and pricing of innovative and competitive products, conduct experience studies to broaden our experience data basis

Underwriting Support to meet our clients’ underwriting needs

We provide a tailored underwriting service, including specialist medical knowledge or advice on difficult cases

We also advise on optimizing the costs and benefits of the underwriting process and maintaining adequate risk management protocols


Swiss Re Services

Life Guide – Swiss Re’s internet-based underwriting manual

highly valuable tool for the day-to-day underwriting assessment and decision-making process

Produced by Swiss Re’s global team of expert medical doctors, researchers, statisticians and underwriters


Swiss Re Services

Magnum – Interactive underwriting

Swiss Re has harnessed technology to effectively automate the underwriting process and create one of the world's leading life and health underwriting systems

this real-time tool adds value to our clients by bringing lower underwriting costs, faster turnaround and a better service for all parties in the value chain

Magnum ensures that the customer can be given a swift decision.


Swiss Re Services

Support in Claims Management

We offer support of our client's claims management activity, provide valuable input from the claims perspective into product development initiatives .

Through seminars and individual company workshops, we are committed to providing professional training and development for our clients, aimed at building a sound knowledge base of best claims practice.


Swiss Re Services

Training and Seminars

Swiss Re organizes highly professional seminars for its clients.

Round table events and seminars on a specific topic or for a specific client satisfying the actual needs of a particular insurance company

Swiss Re Academy

We offer a comprehensive training portfolio to continue providing world-class client training


Swiss Re Services

Publications and News (http://www.swissre.com)

There is a wealth of materials available at Swiss Re for the use and benefit of our clients

summarized in our booklet “Swiss Re Publishing”

Our regular publications “Sigma” and “Insights”

Our worldwide network of specialists, increasingly “networked” for better communication

Our web-page (www.swissre.com)


Questions?

Thank you for your attention

www.swissre.com

[email protected]

Reassurance Market as Resource for Development in CIS

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