Signal Iduna: Romanians’ appetite for insurance products is growing, which is a positive sign

Romanians have an uneven relationship with insurances, especially auto ones, and the nation’s culture when it comes to insurances has never been widespread, even though it has been growing in the last years. Little by little, Romanians started to get used to the idea that assets, be they personal homes or offices, need to be insured, which is why the whole sector has been growing, with more and more players offering various products in an effort to meet the market’s demands. On all these topics, Tiberiu Maier, President of the SIGNAL IDUNA ASIGURARE REASIGURARE Directorate and of the SIGNAL IDUNA ASIGUR?RI Board of Directors, has shared his opinions in an exclusive interview for Business Review, explaining in the same time which are the most sought-after products of the company that he represents.   How would you describe the year 2024 for SIGNAL IDUNA? What were the main challenges you faced?   In 2024, we focused our efforts on the strategic development and consolidation of SIGNAL IDUNA’s position on the insurance market, and the signing of the acquisition agreement for Garanta clearly supported this approach. The acquisition of three companies in the last three years represents a vote of confidence of the group in the Romanian insurance market and its development potential through the constant efforts of the management team, focused on innovation and sustainable development. I am proud to coordinate a team that shares the same ambitious vision of consolidating both the services currently offered and expanding the portfolio, in order to promptly respond to the constantly changing needs of the modern consumer.   In recent years, we have had to adapt with agility to the volatile economic context, marked by significant legislative changes, major events such as the pandemic or navigating geopolitical tensions that continue to have a major impact on the entire business environment. However, we remain flexible and constantly strive to absorb market fluctuations, while maintaining the same quality standard of SIGNAL IDUNA services.   In 2024, we saw a growing demand for personalized insurance among companies. We are responding to this need with dedicated solutions that cover employee protection, building and property safety, civil liability, and business continuity. In addition, we have expanded health insurance by adding an emotional health service that includes psychotherapy, nutrition, and parenting.   We are also offering companies more flexibility in building the package of non-salary benefits offered to employees, who can enjoy a variety of medical coverage through the co-payment option.   You are preparing to enter the auto insurance market this year. How do you assess the benefits and/or risks of such a move, considering the relatively recent negative history of Romanians with auto insurance companies (see the cases of Astra, Carpatica, City, Euroins, etc.)?   Currently, there are both significant opportunities and challenges across the insurance market. In terms of benefits, portfolio diversification and the ability to offer integrated solutions to consumers are two of the most important. However, there are also major challenges, such as customer distrust due to this negative history they have faced in the past and very high competition in a relatively fragmented market. Regarding the decision to purchase an RCA policy, Romanians take into account several specific criteria: they are increasingly interested in services that offer rapid claim resolution, easy access to information, and a process that is as simplified as possible.   In this context, we are still in the process of analyzing the opportunity to enter the Romanian MTPL market this year. If the decision is positive and we officially start this process, we will support consumers with the same degree of professionalism, promptness and accessibility – assets that we have acquired in the experience of recent years in other insurance segments, offering them a superior experience and increased security.   Auto insurance prices, on the other hand, have increased a lot. How will you remain competitive with this new product for Romanians’ preferences, considering the offers of other players on the market?   The market in which we operate is dynamic, marked by continuous change, so we constantly monitor the evolution and adjust our strategies so as to maintain our level of competitiveness. We want to keep our offer in line with the needs of Romanians through relevant solutions, adapted to the current context. Innovation and flexibility are key values, which help us to respond effectively to market challenges and to constantly improve the services offered.   Although Romanians tend to be price-sensitive when choosing a third-party liability insurance policy, there are other elements they take into account in their final decision, namely easy access to information and a simplified process. Certainly, our success on the third-party liability market will not depend on price, but on the added value we will offer to drivers: uncompromising quality, supported by advanced digital progress and improving the customer experience, from purchase to claim settlement. In approaching the MTPL market, as a general direction, we aim to achieve an optimal balance between costs and benefits, so as to offer solutions that are not only affordable, but also bring added value to our customers. We will focus on providing fast, safe and efficient services that improve the driver experience, without sacrificing quality. This objective will be reflected in every decision we make, from issuing policies to handling claims, to ensure that every customer benefits from top-notch services.   SIGNAL IDUNA also offers a type of home and household goods insurance. How big is the appetite of Romanians for this type of product, how sought after is it? Certainly, Romanians’ appetite for insurance products is growing, which is a positive sign, especially in the context of increasingly frequent natural risks, such as earthquakes, floods or fires. According to the latest data analyzed in the ASF report for the first 9 months of 2024, there was a 20% increase in home insurance (mandatory and optional), compared to the same period of the previous year, demonstrating the accelerated interest in this type of product. However, we observe a trend of underinsurance, and many Romanians are not fully aware of the importance of complete protection of homes and personal belongings. This is a segment in which we will continue to make the necessary efforts to inform the public, demonstrating the real value of optional policies, which offer extended coverage.   Compulsory home insurance (PAD) continues to play an important role in raising risk awareness. However, there is still significant potential for development in the optional policies segment. These not only provide home security, but also include protection of household goods and emergency assistance services. These are benefits that can make a significant difference in extreme situations, for those who want to fully protect their home.   But between individual health insurances and those for companies, which are the most sought after by Romanians?   Health insurance, both for individuals and companies, plays an increasingly important role in the Romanian market. Currently, most health insurance policies are offered by employers as fringe benefits, a valued and sought-after option on the labor market. Employers opt for packages that are tailored to the needs of employees, ensuring that they have access to quality medical services.   Although the corporate segment dominates the market, there is a growing trend among Romanians to understand and adopt individual insurance. As people become more aware of the benefits of fast and direct access to private medical services, interest in such policies is growing. In this context, individual health insurance is increasingly appreciated, especially due to its flexibility, but also the possibility of having extended coverage and access to any private medical network in Romania. In addition, the diversification of insurance packages and the increasing emphasis on prevention, extended coverage and additional services, such as wellbeing and telemedicine, significantly contribute to this upward trend.   Regarding the outlook for the current year, I estimate continued growth for both the individual and corporate segments. I hope that this trend will be supported by tax changes, especially by increasing the deductible ceiling, which would come as an additional incentive for companies in Romania who understand that fringe benefits are essential for team productivity and more and more companies want to include them in their packages.   What types of insurance occupy the largest share in your portfolio and how do you see the evolution of the SIGNAL IDUNA portfolio in 2025? How do you think its composition will look at the end of the year?   Health and life insurance are undoubtedly the central pillar of SIGNAL IDUNA’s portfolio and continue to play an essential role in the company’s development. These segments not only occupy the largest share in our portfolio, but are also the ones that will continue to register double-digit growth. The growing interest of Romanians in private medical services and long-term financial protection solutions reflects a clear, continuously developing trend.   We also expect accelerated expansion in the area of general insurance, such as home and liability insurance. This confirms the growing interest of Romanians in protecting their assets and their lifelong work. Customers are becoming increasingly aware of the importance of extensive coverage for the risks they face daily. In parallel, we continue to pursue the strategy of expanding and consolidating our portfolio, to offer our clients a complete and integrated experience. Our priority remains to optimize internal processes through digitalization and automation, so as to improve access to insurance services, increasing operational efficiency and offering fast, intuitive and personalized solutions.   It’s been a few months since SIGNAL IDUNA took over a majority stake in Garanta Asigurari. How do you see this move a few months from now? What signals do you have?   The signing of the agreement to take over the majority stake in Garanta represents an important moment for SIGNAL IDUNA and significantly strengthens our position on the Romanian market together with the takeover of ERGO companies in 2021.   In addition to strengthening our local presence, we have already seen several important results: positive customer feedback, opportunities to expand into new market segments, and significant operational synergies, which allow us to improve internal processes and product distribution.   There are voices that, unfortunately, fear for Romania’s stability in the short and medium term, given the socio-political situation. Do you have any concerns from this point of view or are you optimistic?   We are fully aware of the challenges facing the insurance market and the economy as a whole, so we constantly analyze their impact on our activity. However, SIGNAL IDUNA remains dedicated to the Romanian market, with a solid strategy of sustainable growth and development, which is not significantly influenced by short-term fluctuations. We choose to see the glass half full and believe that in the face of economic uncertainties, there are also important opportunities for innovation and consolidation, especially through the digitalization of services and the diversification of insurance solutions, and we aim to exploit them to their maximum potential. In this context, we remain cautious in the face of risks, but we are confident in our ability to adapt and develop, which allows us to respond quickly and efficiently to market changes. Romania continues to be a market of great importance, with significant development potential. The growing interest of Romanians in quality insurance services encourages us to invest in innovative solutions that meet their needs and offer them protection in a modern, easy-to-understand and accessible way.