Mr. Simo, could you please brief us about the establishment and the start of operations of INSIG in Kosovo?
The Company INSIG in Kosovo is an integral part of INSIG Sh.a Albania. The History of INSIG in Kosovo started immediately after the war ended and it was exactly the time when the market needed our services. The economy was destroyed and many things did not work the way they should have been working, therefore me together with Mr. Bardhyl Minxhozi, our General Manager in Albania came to Kosovo to see the situation with our own eyes and we became confident that Kosovo needed an insurance company like ours. Very soon we realized that we were right. We made our first contact with the UNMIK authorities, and applied for a license to be able to carry out our activities.
To be honest people had doubts and the International authorities also, that an Albanian company could operate properly in the Market. Of course one has to realize we are a big company and we were the first successful company in Albania so we had a good relation with the International Market of Insurance, and we were selling already all the products in Albania. We already had established a dialogue with the serious insurance companies and we had a good evaluation by them, so our "CV" looked very good by the time we got to Kosovo. After finishing all the application procedures and paperwork on the 1st of March 2000 the license, as the first company in Kosovo to operate on the Insurance market was granted to us. Of course the conditions were different from now, we had to start in small offices in Dragodan. It was a kind of an emergency situation, because we had to start working as soon as possible, but at the same time of course we wanted to be professionals and not to scare away our new customers. Therefore to continue we started expanding and opening new offices all around the country. Now, the story is completely different, we have a good IT structure, a nice and representative office building in the center of Pristina and a lot of clients.
You have the most exclusive products as well as the most extensive network of offices all around Kosovo, could you give us some idea on how extensive this network is, how many outlets do you currently have?
At the beginning, after opening our head office in Pristina, we also opened a number of branches in the seven main cities of Kosovo, like Gjakova, Prizren, Peja, Mitrovica, Gjilan. Of course we have our small offices in the smaller towns. The main offices in cities like Gjakova or Prizren cover all the area and projects itself with reporting to us. We also have a visible presence in smaller villages like I said before, because our philosophy is to bring the products as close to our clients as possible. We have more than 200 sales points or small offices all around Kosovo, which are divided and managed by our agents. Our system is very well organized and all the subdivisions report to their supervisors, who in their turn report further to us in the head office. It is important to mention that we do not have any uncovered area in Kosovo.
Your license now is limited to vehicles insurance in Kosovo; do you think INSIG will soon also offer other kind of insurance services?
Of course, for the time being we only have the license for 3rd party car insurance, but all the other insurance companies are in the same situation, since this is the only insurance form licensed by UNMIK on the territory of Kosovo. At the beginning it is ok to have just one type of insurance, and the situation was also unstable then. Regarding the situation now, I have to say that the authorities are not helping us with their restrictions. We simply cannot offer other forms of insurance, like life insurance or property insurance but we have to understand things in the way they are. INSIG though is ready and will be able to offer other kinds of insurances as soon as the market is opened for them. Not cause these products, and is ready as soon as possible to start in the market. We are expecting to have the license for those other kinds of insurance in approximately 3 months time.
I can say that for the most part our products are applied here through our company in Tirana. With the cooperation of our partners (reinsures) from London we will be able to obtain licenses also for other products and I hope that in a short period of about three months we will be able to file the application.
Our readers are interested in figures and statistics in order to have an accurate assessment of your performance; can you tell us then what your turn over is?
Of course those are professional secrets, I tell this like a joke. I can say that we are one of the leading companies in the market. Last year we have had 62 .000 clients or policies issues.
Of course since we just started working this year it we cannot accurately say. It was not very easy that is certain but I think this profits are not our profits, but is the others profit, which means is that many profit from the offer of our services. I must say that most our margins have been going into paying all the many claims for the policies we have, in addition of technical reserves.
| Just like in regards to the insurance provision, all our licensing activity was done with the approval of the different authorities. In the beginning there was no legal framework that would allow these activities, but now this regulation has now been approved. It is contemporary regulation, and clearly foresees the incorporation of other activities and products; we therefore feel our activities to be in accordance with the supervising activities of BPK.
Do INSIG operations in Kosovo foresee entering join partnerships or distribution rights of certain insurance products, we know that legislation does not allow yet. But once these products are introduced to the market; As you are aware the worlds largest Insurance companies offer and wide and diverse portfolio of products and services.
This cooperation already exists and I think you mentioned the word venture we do not get in the ventures. All our activities are with insurance agreements.
I understand the infancy of the local industry. But if you look for example in markets such as the USA, the products offered by Insurance companies go outside and beyond the mere insurance. Would you be open to partnerships or joint ventures to expand your product base?
Of course there is no comparison because you made comparison with America and in Kosovo the strategy of our company is to be a part of this trend. Our technical people are trained in London and USA. Because we where a new company for the last ten years we tried to apply the contemporary methods and products offered in international insurance markets. Nevertheless we have the infrastructure necessary in place.
What efforts is INSIG making to bring investors to Kosovo? Where is your social citizenship illustrated?
It is important to note that INSIG does not have a dominating role in drawing investors because first we think that there must be a regulated feature of the substructure of Kosovo legislation and government institutions. It is not possible that foreign investors come and have strong legal duties. Kosovo still suffers from a law vacuums, and it is in the phase of formulating new laws in every kind of field activity. After the consolidation of this base law it would be very important in investors reactions and attitudes towards this nation. It is that which will give them the necessary guarantee to insure their businesses, for example I will mention Coca-Cola in Tirana was insured from INSIG, went on fire and INSIG paid a 4 million DM claim.
How do you see the economy of Kosovo within the medium to short term?
The future of Kosovo is very bright; maybe you would not think that way if you look at Kosovo right now; the war destroyed not just houses and cities but people. In order to show that there is a potential Market here, the base for the industry must be develop, because people need every guarantee, I am of course speaking for private business.
From an experienced and successful businessman point of view, which is your greatest challenge as a director of INSIG here in Kosovo?
Our company has a motto, which you can see in the promotions of INSIG, it is "The name that you should trust". In the beginning the situation was very uncertain because nobody knew what company we were and our great tract record. Currently I am in contact with certain business people who all agree that INSIG is truly a name that you should trust. You must start to trust us our motto became a reality. Our challenge is to serve the people. We want to apply other insurance schemes such as: life insurance, property insurance, and also categories that we applied in Albania so that INSIG can show its real face and structure as soon as possible
Can you tell us something about your personal profile, your history with INSIG as well as your achievement?
I am married I have two daughters. I started working with INSIG about seven or eight years ago. I have worked in different positions within INSIG head quarters in Tirana, starting from specialist, and Director of the General Manager's Cabinet, and three years ago I became Director of INSIG in Kosovo. And how successful is my company ask my clients and they will tell you.
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