Transcript Reinsurance 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 Re
20, 21 June 2007
Slide 1
Agenda
Introduction & history
Principles & Organization
Competitive strengths
Facts , figures & Outlook
L&H in Central Eastern Europe (CEE)
Swiss Re Services
Life&Health Swiss Re
20,21 June 2007
Slide 2
Global presence
Life&Health Swiss Re
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Slide 3
Offices in more than 30 countries
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
Life&Health Swiss Re
20, 21May 2007
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Proven expertise in risk and capital management
Strong corporate culture based on over 142 years of experience
Agenda
Introduction & history
Principles & Organization
Competitive strengths
Facts , figures & outlook
L&H in Central Eastern Europe (CEE)
Swiss Re services
Life&Health Swiss Re
20,21 June 2007
Slide 5
Competitive strengths
Client base
Financial strength
Knowledge
Expertise in capital and risk
Comprehensive product and service offering
Global presence
Balanced portfolio
Geographical diversification
Global leadership position
Life&Health Swiss Re
20, 21 June 2007
Slide 6
Client base
Reinsurance
Property and casualty insurance companies
Life insurance companies
Captives
Large corporations
Financial institutions
Institutional investors
Life&Health Swiss Re
20, 21 june 2007
Slide 7
Financial
services
Knowledge and expertise –
Swiss Re’s publications
Long-established and
proven expertise
Extensive research
and focused
innovation
Exceptional working
and learning
environment
Life&Health Swiss Re
20, 21 June 2007
Slide 8
Swiss Re’s publications
sigma series
risk
perception
series
risk dialogue
series
focus reports
www.swissre.com
Expertise in capital and risk
Risk transfer
Single risk
Whole company
Portfolio of risks
 Reinsurance underwriting
 Risk management services
 Claims
Balance-sheet
management



Life&Health Swiss Re
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Slide 9


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
Macroeconomic Situation
Premium Volume
Portfolio Mix
Growth
Major Players
Perspectives
Life&Health Swiss Re
20, 21 June 2007
Slide 10
Swiss Re Services
Only1% of the European
Life Insurance is written in CEE
EUR bn
100%
Share of CEE in
Europe
GDP: 12%
NL: 8%
L: 1%
2006 preliminary
figures
Russia: Life Insurance
without salary scheme
business
Source: Economic
Research & Consulting
90%
1637
33
11831
399
GDP
Non-life insurance
Western Europe
Central & Eastern Europe
11
80%
70%
60%
50%
40%
738
30%
20%
10%
0%
Life&Health Swiss Re
20, 21 June 2007
Slide 11
Life insurance
90% of the regional Life Premium Income
is generated in Central Europe
GDP 2006: EUR 1`637bn
Rest of
Eastern
Europe
21,8%
Life Insurance Premium 2006: EUR 11.1 bn
Russia
45,2%
Rest of
Eastern
Europe
10,0%
CEE
87,3%
CEE
33,1%
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Russia
2,7%
Russia: without salary scheme business, preliminary data
Sources: WIIW, Insurance Regulator, Insurance Association, Swiss Re Economic Research & Consulting
almost 2% of Gross Domestic Product
is spent for Life Insurance
7%
Life Insurance Premium/GDP (2006),
preliminary data
6%
5%
4%
3%
2%
Slide 13
Sources: Insurance Regulator, Insurance Association, Swiss Re Economic Research & Consulting
Greece
Germany
EU15
Poland
Slovenia
Hungary
Slovakia
Croatia
Bulgaria
Romania
Czech Republic
Life&Health Swiss Re
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Ukraine
* Russia: Without short
term salary scheme
business
Russia*
0%
Kazakhstan
1%
…the Share of Risk is accordingly low
6
EUR bn
2006 Data
5
4
3
2
1
* Russia: Without short
term salary scheme
business
Life&Health Swiss Re
20, 21 June 2007
Slide 14
0
Poland
Slovakia
Czech Republic
Savings Component
Source: Swiss Re Economic Research & Consulting
Hungary
Russia
Risk Premium
Foreign Insurers dominate the
Life Insurance Business
Market share of Life Insurer with foreign contribution of capital of 50% or
higher (2004)
Slovenia
Ukraine
Poland
Croatia
Romania
Czech Republic
Hungary
Slovakia
Life&Health Swiss Re
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0%
20%
40%
60%
80%
100%
Sources: Insurance Regulator, Insurance Association, Swiss Re Economic Research & Consulting
Strong economic growth expected
Ukraine
Kazakhstan
Slovakia
Russia
Poland
Czech Republic
Slovenia
Hungary
Life&Health Swiss Re
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0%
1%
2%
3%
4%
5%
Compound average growth rate (2007-2010)
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6%
7%
8%
9%
Real growth 2006
Sources: WIIW, Oxford Economic Forecasting Ltd, Swiss Re Economic Research & Consulting
Wealth will increase – departing from low levels
EU-15 average
GDP per capita at
Purchasing
Power Parity
100
90
80
70
60
50
40
30
20
10
Life&Health Swiss Re
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Slide 17
1995
Source: WIIW
2000
2005
2010
2015
Czech
Republic
Slovakia
Poland
Russia
Bulgaria
Romania
Ukraine
Macedonia
0
Central Europe with two digit Growth Rate
Index 1991 = 100
1000
900
15%
800
700
600
11%
500
400
300
200
100
-18%
0
1991
1992
1993
CE
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1994
1995
1996
1997
1998
1999
Remaining part of Eastern Europe
2000
2001
2002
2003
2004
2005 2006P
Russia
Sources: Insurance Regulator, Insurance Association, Swiss Re Economic Research & Consulting
CAGR
19922006
Strategic challenges
Increase insurance penetration
Strategic challenges
Fast evolving insurance
corporate landscape
Key issues
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Insurance risks and risk
transfer
State support & regulatory
compliance
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Slide 19
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
Agenda
Introduction & history
Principles & Organization
Competitive strengths
Facts , figures & Outlook
Swiss Re L&H in Central Eastern Europe (CEE)
Swiss Re Services
Life&Health Swiss Re
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Slide 20
Swiss Re Services
Life&Health Swiss Re
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
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 wellinformed technically-able partner.
Swiss Re Services

Design and pricing of innovative and competitive
products, conduct experience studies to broaden our
experience data basis
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Underwriting Support to meet our clients’ underwriting
needs
We provide a tailored underwriting service, including
specialist medical knowledge or advice on difficult cases
Life&Health Swiss Re
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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
Life&Health Swiss Re
20, 21 June 2007
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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.
Life&Health Swiss Re
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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.
Life&Health Swiss Re
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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
Life&Health Swiss Re
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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
Life&Health Swiss Re
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
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]
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