А Conversation With The Master Gerald Muler UNIQA International Beteiligungs-Verwaltungs GmbH General Executive And A Member Оf “Vitosha” Insurance Company’s Control Board. By Albena Alexieva, INSURANCE.BG.
Mr Muler, you are one of UNIQA’s managers. Could you, please, introduce yourself to our readers?
My name is Gerald Muler, I am UNIQA International Beteiligungs-Verwaltungs GmbH General Executive. UNIQA International Beteiligungs-Verwaltungs GmbH is a part of the UNIQA GROUP. I am the group’s expansion manager. I have been working for UNIQA GROUP since 1995, and since 1997- for UNIQA International. I have participated in a lot of projects, connected with the group’s expansion with company purchase and integration abroad. In 2004 I was UNIQA’s president in Croatia, i.e. I have experience of how the company works abroad which helps me with what I am doing now. I was responsible for the markets in Serbia this year, and the company objectives were Ukranian and Serbian markets. And since buying a company is easy than supporting it, I am a member of “Vitosha” Insurance Company’s Control Board.
You know of the development of the Bulgarian market? What can you say about it?
During last year and the current one all regular events take place on the insurance market, since we are familiar with other similar markets. The customers’ thought that they should ensure themselves is not as tangible as the western peoples’. Which results in the not so ethic competition when it comes to market share. A lot of areas are influenced by some dumping policy. Insurance market development is dependent on the insurers’ quality way of thinking. When this is present it will immediately reflect on the population. The interest itself will lead to the development of new products and acceptable prices.
Isn’t UNIQA a little late on the Bulgarian market? A lot of companies entered it earlier.
I do not think we are late, because at the moment the events that are to distribute the market itself are taking place. In 5- 10 years’ time the Bulgarian insurance market will be a lot more different as far as competition is concerned. If you ask me, I think that whoever enters the market now is determinant as well as in what way is the normative base to change. There is this emotional side, because of Bulgaria’s forthcoming EU membership, which is by many means positive for the insurance business.
Our actual EU membership will definitely put things on a different scale. In what way will the insurance market be different then?
The insurance necessity is regulated by two factors- the main one is the population incomes. I think that an EU membership will contribute to such a raise. Austria (no matter that it has been an EU member for 10 years) proved that everything can change in a day. Austria’s main EU advantage was guidance how to manage certain resource on certain projects in certain economic fields. The second factor is the self- consciousness- that of the people, and that of the companies as well. Let us give the Danube as an example, it passes through both countries. The floods caused a lot of trouble in Bulgaria. When the people see that the state covers the damage by the means of minimal financial relief, they realize that insurance is a must. My experience in the Czech Republic have taught me that natural disasters make a deep impact on the people.
You said that one of the main problems of developing markets is the unfair competition. What is the competition in Bulgaria like? Are you afraid of it?
We are a little afraid, of course, this is something usual as far as new markets are concerned. Everything should be monitored by the respective authorities. All companies use the same methods for price calculation. Which means dumping prices will be an advantage just for a while, but is by no means beneficial if the customer does not buy any other insurance.
On the whole, normative organization and way- of- thinking changes are what should take place?
As a matter of principle, the Control Board should exercise control, measures should be taken. Up to now all UNIQA foreign companies are quite profitable. The automobile insurance, which in on a large scale on the East- European markets, is only a single segment, but it is a way of influencing peoples’ idea for what insurance actually is.
What are your long- term expectations for “Vitosha”?
I expected to develop better than average and we have ideas and strategies in mind about how thw company is to improve further on. Our target, however, is the customer. Everything should be in favour of the customers, not the company.
What can you say about UNIQA objectives outside the insurance business?
We have information about rival companies’ activities as far as health insurance and superannuation funding. Our main concern, however, is “Vitosha” and its better market positions. All other investments are connected with customers and their potential. The essence of the insurance business is the client, he is the one who should predisposed to buying additional insurance products.
