Leader Team nine month gross written premiums add 13 percent to EUR 1.95 mln

Romania’s Leader Team, the insurer controlled by businessman Razvan Rusu, registered a 13 percent in gross written premiums to EUR 1.95 million in the first nine months against the same period of last year, supported by a strong policy renewal rate.

Rusu estimates the insurer will further grow next year, despite the fiscal and legal challenges.

“Next year we are looking to develop our corporate portfolio, and we have created special department to handle this. I think this sector will generate the biggest increase (e.n in gross written premiums),” Rusu told BR.

Leader Team is one of the first players to tap the market of large public events. For the Human Body Exhibition, held this summer in Bucharest, the insurer went through a series of details such as fire hazard, estimated number of visitors and ambient temperature before issuing the bond.

“The main challenge is to get organizers to understand the risks they are subject to in case of an accident. What if someone attending a concert gets injured? Then he can sue the organizer for compensation and it can get rather costly. But it also about the organizer’s business, let’s say the artist cancels at the last minute because he is sick? That’s why we have introduced an “event cancelation policy” for just such problems. This protects the organizer from losing huge amounts of money and from potential law suits that can drag on for years in order to get compensation from the artist,” explained Rusu.

He added the insurer has almost doubled its client portfolio over the last two years in this segment, providing services for the Cirque du Soleil shows and the Europa League final in Bucharest.

The company has also made strides in the corporate segment, providing bid bonds for companies taking part in public biddings.

“The bond basically guarantees that the insurance company will pay the guarantee if there is a claim from the state,” stated Radu. He says this option is more affordable and does not create cash flow problems, against the alternative of indemnity letters.

This year, the insurer has seen a 72 percent increase in the segment of bid bonds compared to 2012.

Ovidiu Posirca

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