Insurers have made sweeping overhauling moves in recent years in a bid to boost the efficiency of their operations and slash costs.
Five in eight large insurers shut down branches and agencies last year, with the broadest restructuring move being made by Omniasig, which closed down 90 units. A number of 1,200 people left the five companies and part of them were taken over by brokerages, so that overall the insurance industry shed 1,000 people.
The insurance industry was seriously hurt by the crisis and more than 5,000 people have left the market in the past six years. At the end of 2013, insurance personnel (insurer and brokerage employees) included 13,300 people.
“Overhauling is a trend followed in the past 4-5 years that is certain to continue, but probably at a less sustained pace. Companies will further cede from their business to brokers, which will come to handle 60% of premiums by yearend,” comments Viorel Vasile, general manager of Safety broker. Brokers have come to hold 55% of the insurance market after the first quarter of 2014.
Omniasig, ranking third on the general insurance market by underwritten premiums, a company controlled by Austria’s group Vienna Insurance Group (VIG) operated the broadest revamping process in terms of the number of employees as well. The Austrian-held company made 426 employees redundant during 2013.
The insurer underwent a harsh restructuring process in 2012 as well, after the merger between former Omniasig and BCR Asigurari which generated the current entity.
While in 2011 the two companies had 350 territorial units together, in late December 2012 the new entity had 220 units left. In late 2013, the insurer had just 130 units and 1,600 employees.
VIG took further restructuring moves at the other general insurer it owns in Romania, Asirom, as well. Asirom cut its number of units from 156 in 2012 to 135 in 2013. In the wake of the unit closedown, 252 employees left the company.
Positioned third in the ranking of companies that closed down the biggest number of branches and units in 2013 is Groupama, the domestic subsidiary of the French group of the same name, which gave up 18 units and 172 people last year. Groupama had 174 branches and 1,800 employees. As a matter of fact, the French-held insurer is also among the insurers with the highest number of employees, followed by Omniasig and Allianz-Tiriac.
Other insurers that have taken restructuring further are Austrian-held Uniqa and Italy’s Generali. Uniqa shed 11 branches and agencies last year and cut headcount from 1,277 to 1,192 people.
However, Uniqa is among the insurers boasting a large sales network. Generali, though, boasts the lowest number of closed down units, namely three. Nevertheless, the Italian-held insurer “beat” Uniqa by the number of employees made redundant last year.
On the other hand, there are also insurers about to complete the revamping process or that have afforded to add branches and agencies to their sales network.
Allianz-Tiriac for instance, had 205 units in December 2013, 19 more than in the same period of 2012. While the insurer’s distribution network broadened, its headcount contracted by 107 people, to 1,534.
(English version by Catalina Apostoiu)