Migrating towards careers in insurance

As a representative of capitalism and free initiative, the insurance agent has gradually become a common character in the Romanian society. Those who had cautiously waded into this business were aware that it was a risky, even venturing job.

As large international insurance companies entered the Romanian market, the insurance agent became a counsellor, while the adventure experienced in search for a more stable job turned into the premises of a genuine career for which they abandoned their former professions.

One who has a family, works in a city and earns an above-average salary is a potential client of Nederlanden Asigurari de Viata Romania (NAVR). One who is a college-graduate, cuts through obstacles and sticks to his own goals is a potential counsellor hired by the same company.

NAVR entered the market in 1997 and started from a 3.47% share, reaching 60% market share at the end of last year. NAVR sold 4,000 policies in 1997, but sales increased to 26,000 policies in 1998, 52,000 policies in 1999 and 70,000 policies in 2000, “with a low and under control share of cancelled contracts,” says Violeta Ciurel, NAVR General Manager.

The company has gradually grown from five agencies and 200 counsellors to agencies in 62 towns and 2,400 active or entry-level counsellors, maintaining the 60% market share.

The representatives of the Dutch Group say the Romanian market is difficult to handle for many reasons. “There are a lot of contradictory laws that make it hard for a business of this kind to engage in a long-term contract with a client.

All these contradictions and the negative outcomes of unstable legislation affect the company’s profitability. We had difficult times on the market last year, but we were able to reach our goals, making our efforts even more meritorious,” says Violeta Ciurel.

NAVR continues to be a lonely player on a market that, in spite of the obvious evolution it posted, further features a low penetration rate: “we started from an almost insignificant level, but growing two, three, four times is still quite little.” Violeta Ciurel says that the life insurance premium per inhabitant ratio is quite low, worth about 2 dollars and the market is still small as for the offer and demand.

“Life insurance is not offered by many companies and demand is confined to a slim segment of population that can afford to pay a life insurance policy,” NAVR manager says.

On the other hand, the population is better informed on this issue now: ” our counsellors used to start the conversation with the ABC of insurance, but now they identify the client’s needs and find solutions for their financial protection more quickly.”

While the insurance companies are highly publicised, only few speak about people’s shift to insurance agent positions. These persons, coming from various professional categories, choose a completely different career.

More than three thirds of NAVR insurance counsellors are college-graduates and work as part-time employees with the company. According to Violeta Ciurel, they can earn “a lot of money” from this activity.