Hannes Chopra, Konstantin Bergmann
Success Factors Entering New Markets in CEE
Section "Strategic Management and New Technologies, Their Role in the Development of Insurance Markets"

Hannes Chopra
Chairman of the Board of Directors of “Allianz ROSNO Life”
30 Ozerkovskaya quay, Moscow, 115184 Russia
Tel: +7 (095) 232-3333
http://www.allianzrosnolife.ru

Konstantin Bergmann
Head of Representative ROSNO in Ukraine
146 Zhilyanska street, Kyiv, 01032 Ukraine
Tel: +380 (44) ) 492-2969
konstantin.bergmann@rosno.ru
http://www.rosno.ru

Success Factors Entering New Markets in CEE

Development of Ukrainian insurance market attract an increasing attention of the market leaders. After rapid progress of economic reforms Ukraine could be one of the most promising object of investment in CEE region.

Allianz Group has valuable experience of successful activity in CEE and proved their key role in development of emerging financial markets. Now Allianz Group has strong presence on CEE markets, takes a leading place in 4 CEE markets (Slovak Republic, Hungary, Romania and Bulgaria) and takes a key position among other markets.

History of entering new markets began in the early 1990’s through greenfield and acquisitions  with right strategic positioning of Allianz Group company’s in the region. Nowadays Allianz Group has 13,1% market share and serving more than 10 mio clients. Allianz Group has a status of largest international insurer in CEE and second largest insurer overall.

CEE region has attractive marketing factors affecting on creating superior value in growth markets. This is such factors as:
– huge population;
– income and wealth growth;
– political improvements;
– currency appreciation;
– increasing insurance penetration

One of the key success factors in Allianz Group strategy in CEE is the client oriented business approach & early mover. It means that Allianz offer services meeting customers needs. This strategy also allow forecast market needs with purpose to run new services on the market.

Second key is a partner management in entering emerging markets. Strong partnership with effective structure is an additional strategic advantage. Allianz Group has Sistema Group & Local Management as a partner in Russia, EBRD in Slovak Republic, Tiriac Group & Local Management in Romania, Zagrebacka Banka in Croatia, Local Management in Bulgaria.

The next key is an entrepreneurial management open for new ideas and changes, excellent performance culture, effective sales-driven strategy. It’s make an opportunity for flexible marketing strategy & tactics.

The last but important success factor in entering CEE markets is “insurance know-how”. It combine in the effective business model such factors as operating efficiency, capital adequacy, customer choice, brand management, geographical coverage, technological proficiency and human talent.

Knowing of specificity of new emerging markets and having experience of successful developments of insurance markets in CEE region assure in successful entering of Allianz Group in Ukrainian insurance market.