Аn interview with Georgius Dedopoulos, AIG Life (Bulgaria) General Executive
Mr. Dedopoulos, this is you first media interview for a Bulgarian edition. Will you, please, introduce yourself to our readers?
- Eighteen years ago I started working for the
commercial department of ALICO Greece, in the corporate insurance division. I gradually achieved the position of a Group Manager. I was a Regional Director from 1999 to 2003. During that time I was
working in Greece, being responsible for Central and Eastern Europe. That was the reason for my first visit to Bulgaria. My priority was banking insurance in all countries of this region. In 2003 I
was sent to Dubai as a Middle East Distribution Senior Vice President. I went to Egypt in 2005 at the position of General Manager. Now I am here, in Bulgaria.
What are your ambitions as an AIG Life General Executive? Does the company have any concrete objectives, assigning you to that position in Bulgaria?
- There are two main objectives. First we want to expand and develop our market positions, still offering services of the same high quality. Our second objective is to start and operate the joint
venture with United Bulgarian Bank.
Few days ago the Financial Control Board granted license to two new companies, which are owned by ALICO, UBB and Ethniki. I could not help noticing that AIG is the managing body of the new
insurance companies. Will there be any clash of interests between the already existing AIG Life Insurance Company and the new one co- founded together with UBB and Ethniki?
- Not at all. Just the opposite, there will be more business opportunities and synergies.
Will the two companies have different market targets?
- The JV will be selling insurance mainly to the bank customers. It is proven that selling insurance via bank branches is
never a disadvantage. On the contrary, we can improve the distribution network.
Will Mr. Dedopoulos be involved in the new joint venture management?
- Yes, of course.
Do you imply that you are to help developing combined banking and insurance products, the so-called bankasurance. AIG Life was on good partnership terms with Postbank years ago, but now you
do not offer any combined products?
- We had a Joint Bank Shareholding and an insurance distribution agreement with Postbank. The first does not exist anymore while the second remains.
Greece has been an EU member for several years now, and is operating on the common European market. What challenges is the Bulgarian insurance market facing?
- I do not think there will be any essential change. The insurance business mainly depends on distribution, and is less dependent on the environment. If the distribution is more developed, more
insurance will be sold. I am sure that all the changes, along the EU membership, will be only beneficial. My personal opinion is that the market will continue to grow due to its own dynamics. The
EU membership will do only good. I think other types of distribution will start emerging, such as corporate group insurance, which will be developed quite rapidly.
Mr. Dedopoulos, you have worked on different insurance markets, how will you evaluate the Bulgarian insurance market – Is it mature enough? Is the legal framework good and favoring the
insurance market development?
- I think the Bulgarian government is doing a lot of good work. The conditions allow the insurance market to expand. The development of the market, as I previously said, depends on the
distribution. People do not buy insurance at the supermarket. They buy it when approached by someone who properly advises them. I do not say the market is not matured, but it has a lot to achieve
and I believe the Bulgarians will start appreciating the insurance services more and more.
Last year statistics show that the average Bulgarian citizen has spent BGN 120 on insurance, BGN 70 of which are spent on his vehicle, and only BGN 20 were spent on life insurance products.
I myself think things will be different when the life insurance market share is augmented. What are AIG customers like? What is the AIG target customer like?
- AIG Life is a company providing services to the middle class. That is our target market niche and our future target as well.
What kind of products do your customers prefer? What is the average annual premium your customers pay?
- We sell coverage with risk and saving elements combined. The average premium amount, which our customers pay, is approximately BGN 1 000.
AIG Life is famous for its well-developed distribution network, while it works with major insurance dealers as well, such as EuroLife. What part of you business is related to your
distribution network and what part- to the dealers?
- 70% is related to our own distribution network, 30%- to dealers and other distributors.
Mr. Dedopoulos, you are determined to expand your company’s business and its market share. This year’s statistics show that you have lost the third place, you usually occupy thanks to the
premium amount; presently you are placed fifth. Can you give any explanation, what is the reason for the current situation- the competition, a precedent or something else?
- Our growth comes up to 35% on an annual basis. The fact that a certain year we moved up or down does not affect the overall strategy of the company. I think that the distribution improvements
that we are to introduce, plus the new joint venture, will help us keep the high quality level and our market share.
