Fadata is entirely a Bulgarian company that operates exclusively in the field of development of information technologies and especially products that are directly related to the management of insurance companies. 80% of the insurance market in Bulgaria uses INSIS, which is the operating system created by Fadata. The program has gained great success in European countries, Latin America and Russia recently. The company is also a platinum partner of Oracle.
The Bulgarian company attended the business forum on the future of the insurance sector in Athens held the last week. The Senior Consultant of Fadata and board member of the Association of Bulgarian Insurers Todor Kazandzhiev agreed to an interview for the readers of GRReporter. He spoke about the advantages of the Bulgarian software company but also about the challenges facing the insurance industry on the eve of the introduction of Solvency II regulations.
What is your opinion on forums like this - The Future of the Insurance in Greece?
I highly value similar forums because topical issues of a particular sector are always discussed as it is now in the insurance field. Currently, Solvency II is attracting the greatest interest as it is one of the most discussed topics such as the future of the insurance business. It is also a good opportunity to present innovations in the field as the INSIS operating system of Fadata.
In your opinion, to what extent are the insurance companies on the Balkans prepared to take the challenges of Solvency II today?
I'll try to summarize what was said on the forum and highlighted by the experts of KPMG, Eurolife Insurance EFG and INTERAMERICAN. All agreed that Solvency II does not only mean better risk management. It largely determines how to handle any data that insurers avail in order to be able to calculate more precisely what capital they should accumulate and to make an accurate assessment of current assets and liabilities.
But what is in fact the difference between the currently used methods for capital management of insurance companies and the methods that Solvency II will introduce?
The difference is definitely in depth study of indicators. The substance of any risk the insurer offers should be studied much deeper. In addition, a more detailed risk analysis of each customer is made so that the company is not threatened by recording risks which it can not compensate subsequently.
What reforms should the companies implement to meet the standards of Solvency II in 2012? Do you avail the human resources to meet and cover the new requirements?
When it comes to reforms in general, we consider how to improve the portfolio management of a company. This requires a lot of analysis and different sections that will be handled every day to be able to accurately determine how profitable is a specific business that is recorded and is it worth to take the risk or not.
In terms of human resources, I can say that it is not the main topic. Improvement of data quality and depth requires tailored systems to meet the needs of a more thorough analysis. As it became clear at the Athenian forum, this is not only my opinion but also the opinion of the representatives of KPMG and INTERAMERICAN, who stressed that 90% of the problems with the introduction of the new rules are related with the systems that manage the business or the so-called legacy systems available to the insurance companies. A new kind of reporting is also necessary to enter in depth and to evaluate.
What is the purpose of visiting the Forum in Athens, and tell us briefly about the activities of Fadata?
We came to Greece to present INSIS, which is the operating system developed specifically for the management of insurance companies. It is a key tool in managing an insurance company and is one of the best operating systems in Europe. INSIS is extremely flexible and highly developed system for management and information analysis, which can meet the challenges facing the insurance market at the moment. I can say that the rapid technological development in the world has significantly diminished the distance between the financial and IT fields in management processes. They almost blend in specific sectors, so using the right operating system in many cases may be crucial for business success.
How do you see the development of private insurance in Bulgaria in recent years? Do you think the crisis had a strong impact on this sector?
The crisis definitely has negative impact on the insurance business, especially in Bulgaria. Insurance in Bulgaria is not a separate economic entity, isolated from its environment and it is inevitably influenced by the situation in the country.
Can we speak of cooperation between public and private insurance sector and to what extent?
The state should set the overall policy and legislation in the specific sector. Beyond are the functions of the free market.
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