Main industry issues

From a strategic perspective, insurance companies must adapt to global trends in the sector, and focus their attention on clients. This trend brings the need to implement new, client-oriented models allowing a unified view of customers, segmentation, and cross selling. Insurance companies face challenges such as:

• Pressure on revenue growth and cost optimisation
• Identification of profitable products, product benchmarking, benchmarking and analysis of product costs
• Implementation of planning and effective capital management based on ROI and RORAC
• Implementation of IFRS standards (IFRS 4 and IFRS 7) which have a fundamental impact on the financial reporting of insurance companies
• Solvency II
• Consolidation of the insurance market

Unfavourable prospects for the future, along with the stagnating economy, make growth targets considerably difficult. But the long-term ability of Slovak households to create financial reserves has been better than standard, so there is a space to transfer these funds from banks to life insurance companies.