October 2013

October, 2013
Europa Reinsurance Facility Ltd.
Volume 4
Quarterly Preview
Latest News - Our Corporate Newsletter
for Stakeholders
Welcome to Europa Re’s Newsletter, Volume 4, 2013. We are pleased to inform you about our
project activities in the FYR of Macedonia, the Republic of Serbia and the Republic of Albania. Over
the last quarter we have continued with the design and implementation of operational and technical
components in accordance with the Europa Re business model and local market requirements, which
Our Vision:
is essential for the successful launch of Europa Re’s comprehensive (re) insurance programme. In this
volume, we report on: 1) the First Policy Advisory Board (PAB) Meeting of Europa Re; 2) Conferences
and media coverage related to Europa Re activities; 3) a Workshop with Insurance Regulators; 4)
Increase the level of
catastrophe insurance
Progress on the integration of technical modules to support the market infrastructures for Europa Re’s
penetration among
earthquake and flood insurance products; and 5) Information on natural disasters in Member States
households and small and
and the need for public awareness. We would like to thank the governments of the FYR of Macedonia,
medium enterprises
the Republic of Serbia, the Republic of Albania, the World Bank, the Global Environment Facility
(SMEs) in the region.
(GEF), the Swiss Secretariat for Economic Affairs (SECO), and the United Nations International
Strategy for Disaster Reduction (UNISDR) for their significant support to the Europa Re project.
Following our vision, we are working hard to implement technology-driven (re) insurance market
infrastructures with the aim of introducing reliable and affordable financial protection against natural
disasters in the public interest.
First PAB Meeting of Europa Re:
Image courtesy : Blom
and relationship building initiatives between
Europa Re held its First Policy Advisory
Europa Re and PAB representatives in Member
Board Meeting in Zurich, Switzerland on 28
States. The meeting established a highly
June, 2013. The Facility’s Policy Advisory
constructive communication platform for the
Board comprises the Heads of the Programme
exchange of ideas and best practices that will
Implementation
significantly complement the preparatory work
company’s
Groups
Country
appointed
Shareholders
by the
-
the
for the launch of Europa Re’s innovative
Europa Re designed earthquake
Republic of Albania, the Republic of Serbia and
earthquake and flood insurance products. To
insurance products for residential
the FYR of Macedonia. The Policy Advisory
learn more about this event, click
and commercial properties, to be
Board (PAB) acts as a consultative body of
sold by partner local insurance
Europa Re and constitutes a forum for open-
companies,
ended
here.
Conferences and Media:
project
(i) Europa Re participated in a seminar on
&
implementation activities in each country. The
‘New Perspectives in the Caucasus
SMEs against devastating seismic
First PAB Meeting was a major step forward in
Region’ as part of the 4th Azerbaijan
events.
establishing regular communication channels
International Insurance Forum held in
protection
will
for
offer
financial
homeowners
dialogue
to
support
the
October, 2013
Europa Reinsurance Facility Ltd.
Volume 4
We invite you to visit
our website at:
www.europa-re.com
Baku on 20-21 June, 2013. The seminar
in line with the launch of Europa Re’s operations.
provided an excellent opportunity to inform
The event took place in Tirana, Albania on 27
international practitioners and industry leaders
August, 2013. The workshop was also attended by
about the value proposition and innovative
representatives from the insurance agency of the
concepts developed by Europa Re for building
Republic of Srpska (Bosnia and Herzegovina).
catastrophe and weather risk markets. For more
The Europa Re expert team provided information
information,
Our Mission:
click here.
on: 1) Europa Re’s recent project developments;
(ii) The Macedonian daily newspaper
Dnevnik published an article about the
2) the Risk-Based Supervision of catastrophe
insurance developed under
the Europa Re
Educate consumers
agriculture sector in FYR of Macedonia in the
programme; 3) the Actuarial aspects of the RBS of
about the exposure of their
context of agro-insurance and the available
catastrophe insurance and the role of catastrophe
properties and businesses
insurance subsidy scheme for farmers. The
risk models in actuarial assessment; 4) the
to weather and catastrophe
article reported on Europa Re’s initiative to
Functionalities of the Web-Based RBS tool
risks
improve the agriculture insurance market and
developed by Europa Re; and 5) the Integration of
inform farmers about the benefits of financial
the Web-Based Tool with the IT systems of
protection against natural perils. To view this
regulatory bodies. For our press release on the
credit quality of catastrophe
article, click
event, click
insurance products
(iii) The Macedonian daily newspaper
Improve & standardise
here.
here.
Vest and other media reported on the ongoing
Enable insurance
cooperation between the Ministry of Agriculture
companies to sell complex
of FYR of Macedonia, Europa Re and the World
weather and catastrophe
Bank to increase agro-insurance penetration in
risk insurance products
the country. Development of suitable agriculture
insurance products to address farmers’ risk-
Integration of Europa Re Core
Building Blocks:
management needs is the main priority of the
Over the last several months Europa Re has
insurance regulators to
joint project. To read this article, click
achieved significant progress in consolidating all
enact regulatory and policy
(iv) AIR Worldwide produced a paper entitled
aspects of its technology-driven (re) insurance
reforms conducive to the
‘Probabilistic Seismic Hazard Assessments
programme for Albania, FYR of Macedonia and
development of catastrophe
for Albania, Macedonia and Serbia’ on the
Serbia. Preparations regarding the implementation
and weather risk markets
scientific work behind Europa Re’s catastrophe
of Europa Re’s market platform to support
risk models. The paper was part of the SE-50
catastrophe insurance products for homeowners
EEE conference in FYR of Macedonia. To read
and businesses include the completion of a
Help governments and
this piece,
Europa
Re
high
here.
click here.
technical accreditation programme for equipping
partner insurance companies with the necessary
resolution
know-how and technical support to sell Europa Re
pricing of insurance products and
Risk-Based Supervision (RBS) of
Catastrophe Insurance:
risk management inputs for local
Europa Re organised a workshop to provide
operations. The core modules of the technical
insurance markets.
regulators in Albania and FYR of Macedonia with
accreditation programme that will enable partner
the regulatory framework of the Risk-Based
insurers to effectively operate in the local markets
Supervision of catastrophe insurance which will
are:
be implemented in Europa Re Member Countries
integration and joint promotional arrangements.
catastrophe risk models provide
products prior to the launch of Europa Re’s
training,
risk
management,
IT
system
October, 2013
Europa Reinsurance Facility Ltd.
Volume 4
Europa Re is preparing to organise training
approximately USD 21 million (primarily in the
workshops for partner insurance companies
agriculture sector). In 2013, hundreds of homes
during the upcoming period. These workshops
were flooded in Macedonia when the banks of ten
will provide expertise to insurers about Europa
rivers burst after two days of heavy rain. Over
Re’s
web-based
20,000 people were affected by these floods.
systems. The UNISDR/WMO/EU project:
Flooding in Serbia has caused the deaths of more
‘Building
in
than 70 people in the last 60 years and material
Western Balkans and Turkey’ will provide
damage estimated amounting to more than 8
Consumer Information
significant contribution to implementation of these
billion Euros. In 2013, snow from the Carpathian
Portal is an innovative
training events.
Mountains caused the Tamis River to break its
Europa Re Interactive
insurance
products
Resilience
to
and
Disasters
application for raising
banks and flood the Jasa Tomic village, killing two
public awareness about
people (UNDP, UNISDR and World Bank 2008,
catastrophe risks and
JAROSLAV ČERNI INSTITUTE, Belgrade).
promotion of sound risk
With the aim of increasing public awareness about
management practices
the consequences from natural catastrophes and
the long-term benefits of disaster insurance,
Europa Re Donors:
The Need for Public Awareness:
Europa Re is preparing tailored communication
FYR of Macedonia, Serbia and Albania are highly
concepts to be disseminated through suitable
vulnerable to earthquakes and floods. Some of
media channels in FYR of Macedonia, Serbia and
the strongest earthquakes in FYR of Macedonia
Albania. The main objective of Europa Re’s
occurred
(7.8
strategic communication platform is to convey
magnitude), in 1931 in Valandovo-Dojran (6.7
simple and comprehensive messages to the public
magnitude),
at both educational-informative and promotional
in 1904 in
and
in
Pehcevo-Kresna
1963
in
Skopje
(6.1
magnitude). Over 50 per cent of the territory in
Serbia is vulnerable to earthquakes of magnitude
7, although seismic activity is milder than that of
other countries in the region (UNISDR and
World Bank, 2008). Albania is also located in a
seismically active zone and experienced the last
major earthquake in 1979 (Pusch, 2004). The
floods that occurred in Albania in 2010 resulted in
5,300 residents being evacuated and over 2,500
houses affected by flood waters. The floods of
1962 and 1979 in FYR of Macedonia resulted in
economic losses of approximately 7% of GDP
Europa Re Shareholders:
(for each year), while economic losses resulting
from the floods in 1994 amounted to 3.4% of
GDP. Flooding in 2004 affected 26 municipalities
(mainly in the area of the upper Vardar, but also
in the central, southern and south-eastern parts
of the country), with estimated damage of
levels.