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Facing Today’s Insurance Sector Challenges
Regulation, technology and the implementation of the national health Scheme aRe juSt Some of the iSSueS that aRe having an impact on the local induStRy, SayS maRia fySentzideS, financial contRolleR, tRuSt inteRnational inSuRance company (cypRuS) ltd.
What types of service does Trust Insurance International (Cyprus) offer clients?
Trust Insurance International (Cyprus) Ltd provides general insurance and reinsurance business. The company was established in 1990 and it provided reinsurance and management services to the Direct Insurance companies of the Nest Group until August 2009, when it entered the local market, offering a full range of personal and corporate general insurance and medical insurance products.
opted from the beginning of its local All these challenges are being tackled operations, have contributed positively through strong leadership and versatilto its growth. Our philosophy and ity, so that our people can embrace our vision are “To Lead Through In- the necessary changes to systems and novation and Service Excellence”. At procedures. the core of everything we do are our customer-centric values, our integrity, our reliability, our accountability and an unparalleled team spirit that allows us to always opt for the best. Failure is never an option. For us, striving for optimum results – both for the Company and our clients – is the only way. Our associates and clients have recognized our focus on, and dedication to, Since it began its local operations 10 these entrepreneurial values and they years ago, Trust has been one of the have rewarded us with their trust.
fastest-growing insurance companies in Cyprus. What is the company’s What are the main challenges curbasic philosophy and how has this rently facing the insurance industry philosophy enabled the business to and how are they being tackled?
grow so successfully? I would say that the main challenge is Trust International Insurance (Cy- that of increased regulation and comprus) Ltd has, indeed, raced its way pliance, which places a burden on the into the big league of the insurance operational costs of every company. industry and been flirting with IFRS17 – Insurance Contracts the top. For nine consecu- will place an additional tive years it has been Insurance burden on insurance the fastest-growing in- companIes can companies because surance company in survIve only If it will require sigCyprus and is cur- they have state- nificant investment rently ranked third of-the-art systems, in systems and in the general insur- whIch ensure people. Continuous ance sector with a market share of 9%. The Company belongs to the Nest Group and automatIon and maxImum effIcIency changes to technology constitute another important challenge and, of course, our Group’s expertise and the implementation of the insurance know-how, as well as National Health Scheme will the corporate governance structure ad- affect our medical line of business.
Insurance is a quite competitive sector. Why should someone or a company come to Trust? What does Trust have/do that other insurance companies don’t?
Trust has been built on a robust corporate governance structure, which is also consistent with the Solvency II regime. All the Company’s operations are based on procedures and service level agreements, which aim for consistency, transparency and reliability. The Company has a strong financial position; it is profitable with very high liquidity and a satisfactory solvency ratio.
Technology has changed the way many businesses operate, including insurance. How is Trust adapting to this new reality?
Technology is one of the pivotal adaptation factors as it increases efficiency and ensures that information used for decision-making is reliable. Trust Cyprus has continuously been upgrading its systems and processes. It has a Business Intelligence system which is used for management reporting and during 2017 it implemented a powerful Finance system (SAP S/4Hana). It is currently developing a new insurance system, based on the latest technology, which is expected to be
Some companieS are very Small implemented before and may not be compared to other the end of 2019. able to SuStain the European countries Due to increasing compliance and regulation, I believe that insurance companies can survive only if and, therefore, in my view the Cyprus insurance industry will steadily grow in the coming years. coSt of increaSed compliance and technological developmentS they have state-of-the-art systems, which ensure auto- Now that Cyprus has implemation and maximum efficiency. mented the National Health Scheme,
how do you expect traditional health Foreign investors have targeted insurance to be affected?
many sectors of the economy over The implementation of the National the past few years. Have they had an Health Scheme (NHS) has already impact on the insurance industry? started affecting the medical business Foreign investors are the major share- of insurance companies, as certain emholders in the largest companies in the ployers are removing outpatient cover insurance market (including our own from their group policies. The impact Company), and, therefore, they have is expected to be larger upon the a significant impact on the industry. implementation of the second phase We expect to see considerable changes of the NHS in June 2020, regarding in the insurance industry in the com- inpatient healthcare. I believe that the ing years, as among the large number private insurance will certainly conof companies, some are very small and tinue to exist and will address a niche may not, therefore, be able to sustain market; certain families/employers will the cost of increased compliance and choose to maintain their medical intechnological developments. surance to complement the NHS.
How much does the insurance industry contribute to Cyprus’ GDP? Do you believe that this will increase or decrease in the following years?
Insurance makes a major contribution to Europe’s economic growth and development. In Cyprus, insurance premiums (life, accident & health and general business) amount to €0.9 billion which represents almost 4% of the country’s GDP. This is low
What are your goals for Trust Insurance for the next 5 years?
My first goal is the effective implementation of our new insurance system, which will increase the Company’s quality of service and efficiency and, at the same time, reduce its operating costs. One of my ongoing goals is to design the optimum asset and liability structure, in order to maximize both the solvency and profitability of the Company. The adoption of IFRS17 – Insurance Contracts is a challenging goal as it will require the development of new skills in our Finance Department and elsewhere. Finally, and importantly, we need to develop our people to be ready to face the challenges ahead and, of course, to retain the Company’s talent.
