Galery

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- What is bankassurance, can you tell us how it operates?

- Bankassurance is actually a way to distribute insurance products, ie to sell insurance products. These products are usually created by insurance companies as in our case in Bulgaria. These products tie, attach to the products sold by the bank. That is, for example, a product that covers life insurance or temporary disability of a client, who has taken a housing loan from the bank. This is very important for the client and the bank, and of course, the insurance company. For the customer, because in case of death, the insurance company will compensate the bank for the remainder of the loan. Therefore no tender actions should be taken for the house and the family will not be obliged to pay the remainder of the loan. Thus the bank also protects its portfolio of the risk borne by that customer. Of course, it is rewarded provisions for this activity. And the insurance company creates the product and reports the outcome of this activity. There are many similar products in housing, business, and consumer loans and credit cards, ie in the full range of banking products. And of course, there is another category of products that are more savings. Those are when the customer deposits some money and saves them in something like a money-box. The banks in many countries and in Bulgaria sell similar products. And because they know the customer well for he uses a lot of their products, they can easily offer those products aiming to collect a certain amount, which will be used for pension or lump-sum payment. This is the model and there are many cases of its successful implementation in many countries – and in Greece and Bulgaria, and elsewhere. And thus we have chosen to expand in Bulgaria, namely because we have a very large bank for an ally.

- What is the survival strategy of the National Insurance Company in this economic crisis, which experts say will continue for at least 2-3 years?

- Look, our strategy is not just to survive, we want to develop. This crisis has certainly made us see things differently, from another perspective. What we must do and we’re doing it, because we are a large company, is to understand that the client can no longer buy our products as easy as buying them a few years ago. This requires us to adapt our products, to make them cheaper, although naturally a less expensive product can not provide full coverage, which would give a more expensive product. So, we are trying to impress on our clients that in times of low purchasing power that will probably fall further, they should choose products that might not cover all risks, but cover serious risks. Thus, the customer is actually protected from serious risks, therefore he is secured, but of course can not have the full protection, which is much more expensive. This applies to all areas - life insurance and health insurance, and car insurance, and housing, ie the whole range of products. And to do that we need to think how our company can start operating so that ultimately the value of the product is affordable for the consumer to pay it. Therefore, all companies, and of course the National Insurance Company, monitor very closely the operational costs, where money is spent, so we can reduce costs where we are able to and where the spent money have no great value in order to make our activity and our products less expensive. At the same time, we search all opportunities for development created by the crisis, and they are many. I personally think that this crisis will greatly enhance the property insurance, ie in times of crisis, when one has some valuable assets, it is more important to protect them now than before the crisis when, in the case of damage he himself could, with his own funds to repair the damage and to cover the risks of fire or anything else. Slowly, the customer understands that a significant damage suffered by his property as a house, cottage etc., will place him in a situation which he can not cope with. Therefore, he will tend to insure more against this risk. There are many opportunities for which we prepare to create new products. We reduce the operational costs and collaborate with the National Bank of Greece to reach the customer cheaper and more reasonable.