XPRIMM: What were the business results of TRIGLAV Insurance in 2012? Do you find them satisfactory?
Dragan MARKOVIC: 2012th was a year of turning to a new business model that should produce results in the time coming. Enormous energy has been invested in improving the organization, development and establishment of new sales channels in order to make basis for growth and prosperity, and therefore better results. Any changes require a specific period of implementation, so in this year we expect significant effects to be shown.

XPRIMM: What are your business targets for 2013?
D.M.: TRIGLAV Insurance in Serbia devote to the analysis of the current structure of insurance supply and the products in order to achieve a better concept and the way to meet the needs of current and potential clients. Much emphasis is placed on the development of property and life insurance, all in order to achieve the perfectly balanced insurance portfolio. Other directions we will follow are expansion of the sales network, better availability and optimization of all processes inside the company which will result in more efficient and more professional relationship with our clients.

XPRIMM: How would you characterize the Serbian insurance market at this moment? In your opinion, as a representative of one of the most relevant CEE insurance groups, acting on several markets in the Adriatic region, what are the specificities of the Serbian market?
D.M.: The analysis of the insurance market is a complex process that involves many factors. As a positive fact should be distinguished that the insurance industry, despite the deep economic crisis, continues to develop with premiums increase. I can also mention increasing market competitiveness as a positive factor.

As the negative aspect of the insurance market in Serbia, I can point out that one of the dominating is insufficiently developed awareness of the importance and the need of insurance, which is confirmed by a small number of paid claims from drought suffered by farmers as well as extremely high share of MTPL in the structure of the insurance premium.

TRIGLAV is the largest financial and insurance institution in the Adria region. We are distinguished by our strength in financial, personnel and professional field.

The Balkan has between 25 and 30 million people and provides great opportunities for development. In every way these markets, with Serbian together, have the greatest long-term potential for growth which depends on the economic development of the country and the growth of GDP per capita.

XPRIMM: Looking to the future perspectives of the Serbian market, which are the business lines with the most interesting development potential? Please comment.
D.M.: Tax incentives for life insurance and the expansion of compulsory insurance have been present as suggestions that come from the industry, for a long time. In addition, further compliance between the wider legal framework for insurance and the practice in the EU is extremely important to us, for example in the case of private health insurance and MPTL. Strengthening the rule of law, particularly with regard to speed the adoption and enforcement of judgments, by itself strengthens the interest for insurance against responsibility for damage caused to third parties. However, economic development is a key incentive.

At the first glance, for insurers in Serbia, the introduction of compulsory insurance is certainly a positive, as the fact that the obligation to insure means a rapidly growing number of clients and the volume of business. However, it remains to be seen how this "obligation" may initially lead to increasing public image about the insurance as an unnecessary expense. Certainly I believe that in the long-term positive effect prevailed because the benefits of specific types of insurance, such as insurance against the risk of fire, have become very noticeable during the each claim. The mass participation insurance would give insurers a chance to play in a good light by rapid and fair payment for the value of each individual claim. Insurers definitely wouldn't miss it. Most important, it increases the awareness of the danger of fire, and thus consequently the quality and number of preventive measures taken to prevent or minimize its consequences.

We should know that in some insurance markets in the region, including Serbia, modern regulation and the role of regulators are in the process of establishing. At the same time, there is a characteristic disregard for the rules of insurance profession, such as the system of premiums, bonus-malus system, and other insurance codes, by most of the competitors, all because of poorly developed insurance markets. Local supervisors are therefore less efficient, economies of scale are low, and the rule of law is still not functioning at the desired level. With improving oversight, we will gain the trust in the insurance companies again.

XPRIMM: In the recent years, an increased attention was given to the services' quality and to the post sales services offered to the insurance consumers. What is your company doing in this respect?
D.M.: It is expected that there is a strong correlation between the level of development of insurance products on the one hand and the level of development of the economy and society as a whole, on the other hand. Insurance companies in the world and in our country are adapting their offer to market conditions, especially since the nature of the insurance industry product development does not require a very large investment. Despite the fact that our market is underdeveloped, which in recent years have recorded a negative trend of insurance premiums share in GDP, I believe that Serbian insured are open for innovations and to encourage them by their demand.

Our way to better and more diversified offer, which is certainly dictated by market demand, is through the development of underdeveloped type of insurance, service quality improvement, greater availability and the ongoing education of the population about the benefits of the insurance.

We think about and we work on showing to our present and future policyholders and business partners what we can do for each of them. The insured can not be taken; in fact, they are the ones who choose. We believe that the decisions that they make increasingly consider the quality of TRIGLAV Insurance, primarily a high level of confidence that is reflected in the rating of the entire Group, but also a high level of adaptability to the needs of each insured in Serbia.

XPRIMM: Which are the most important changes you are expecting in the in the Serbian insurance market in the future years?
D.M.: In the former Yugoslavia countries, including Serbia, people's awareness will certainly rise. And there are hidden opportunities for insurance companies. Benefits of Group are sales network which is already developed in all countries of the Adria region, knowledge of the law in these markets and a strong brand that represents quality and business excellence.

The growth of the insurance market in Serbia will open more opportunities for the insurance company, so I expect that the market will be enriched by better quality offer and innovative solutions which will result in intense competition on the market. It is necessary to encourage the development of underdeveloped insurance types, introduce new types of compulsory insurance and work on continuous education of the population regarding the benefits that insurance brings in order to reach the developed markets level of insurance awareness.

Markets such as Serbian, in which operates a large number of foreign insurance companies, thanks to theirs international experience, technical and technological capacity, may offer more sophisticated products than conventional. Along with that, improvement of the overall economic situation in the country, raising living standards and public awareness of necessary security, that is offered by insurance products, will create the demand for products that have overcome the basic framework of coverage and providing the widest variety of protection for policyholders and their interests, as well as a better service quality.