Tenger Insurance was named as one of the best insurance companies for the last year. Let us start our interview, about what influenced you to become the best and what is making it to outstand amongst insurance companies.
- Yes. I think the most important thing is a professional service in line with international standards. Therefore, we always focus on the training of our staffs. Besides focusing on the local Mongolian insurance market situation, we also strive to introduce the Mongolian insurance market abroad through our operations. Mainly, the adherence of the international insurance standards, optimized management structure, and our professional client services impacted the most. Also, it must be noted here that our company has earned our client's trust. Additionally, since our establishment we have focused on implementing insurance services, especially introducing the international risk management benchmark.
- In recent years, there have been a number of fire episodes occurring in large construction sites of Mongolia. Would you share information about the loss and compensation amounts issued by the insurance companies in these cases?
In 2012, the fire incident loss of the Shangri-La hotel was evaluated as 4million USD. The recent fire at the factory of the Gobi LLC was equivalent to 1.8 million USD.
- Tenger Insurance is an insurer of the Gobi JSC. How did you resolve the large fire loss as an insurer?
- Tenger Daatgal compensated 1,0mln USD to Gobi JSC for the loss caused by the fire incident. The compensation amount ended up higher due to the negative consequence of the water used to extinguish the fire. We reimbursed compensation within 3 days. Gobi JSC was able to recover its operations within 10 days of the fire incident, and we as an insurer are happy for being able to help them fully.
- How do you evaluate the Mongolian Insurance market. Is there a prospect of expansion?
- Unfortunately, the insurance market is not expanding sufficiently. Contrarily, it is possible to say that the market is shrinking.
Last year the total insurance fee collected by the insurance companies was 50 million USD, and the net fee was 15 million USD. In maintaining sustainable growth, of course the Driver’s mandatory indemnity insurance and Mortgage loan insurances have important influence. But, risk insurance level amongst the individuals and companies are still low.
That is why we strive to reimburse our Clients loss in the shortest possible time period. We compensate the loss within 3-5 days, aiming to reduce it to 3 days. We have solidly demonstrated that we can reimburse, on the example of the Gobi JSC. Will be maintaining this advantage.
- As we see your report, most of the major companies of Mongolia are your clients.
- Around 60 percent of the TOP 100 Companies of Mongolia are our clients. We are delighted that this number of the companies that trust their risks to us and ensure with us is growing. The business operation of our company is growing in recent years. Specifically, the number of the clients increasing by 24-30 percent, and the profit is doubled. Most of the clients do not limit their services with one product only. Those companies obtain other different insurance products, to maintain their employees, properties, and financial capability.
-What are the most immediate issues of the Insurance industry, that needs to be solved?
- I would say the lack of an insurance culture. Because most of the organizations do not adequately take care of the risk management. Specifically, for the manufacturers it is difficult to maintain the security without implementing a risk management culture. Because the risk management is essential in improving daily operations and furthermore in preventing major risks. On top, the corruption and lack of the professional human resources are other major issues. Thus, our company is closely focusing on those issues.
One example, we take training from International insurance experts and year-by-year we increase the number of the employees trained with these training. With the training, we focus on specializing the employees, managing the risks, and improving the underwriting capabilities.
- You are working in this industry for a considerably long period. Compared to other developed countries, what is the level of the development in Mongolia? Besides, what types of the insurance products could be implemented in Mongolia in those countries?
- I have spent two years in Mongolia. But I have been working in the insurance industry for 25 years. If we compare the Mongolian insurance market with the markets of the other countries; it is not growing but stagnant. Therefore, we must focus on circumstances of developing insurance industry.
In the international level the businesses are aiming to implement technological advancements. Similarly, the risks are changing. Previously, risks of fire and other risks were considered as principal risks, nowadays, human-induced threats as cyber-offenses and hacking-incidents are drawing major consideration at the global arena.
It will be wrong if we consider this to happen only abroad. This is also happening to the banks and financial organizations and other enterprises of Mongolia. Consequently, the cyber-offense is evolving to be a major risk nowadays.
Additionally, another concern is a legal liability risk due to the management responsibility. It was a common practice to restrict the punishments for the incorrect management decisions within the business entity. Though within last two years, it is noticeably more common to address the jury to resolve the liability concerns caused by the management personnel. This may be regarded as a new tendency towards the management personnel liability insurance.
- Could you clarify about the insurance against the cyber-offense?
One of the insurance products we offer is designated to recover the financial loss associated with the third-party cyber-offense. For example, all the attacks related to the cyber crimes, including the viruses, are covered with this insurance. There is an insurance product to protect from the risks associated with these.
- Tenger Insurance is the honorary member of the Am-Cham, the affiliate of American Chamber of Commerce. As a managing member of the AmCham, how do you rate the change of the business environment in Mongolia for fast two years?
- As for me, the business environment in Mongolia is still changing. I would explain this in connection with the number of positive events happened recently. First of all, the commodity prices increased. This in return supporting the economy of the country. The other event is cooperation with the International Monetary Fund program. This specifically, improves the investors trust in the economy of the country. Last time, I participated in the international forum in Singapore, to extend the international partnerships of our company. It is evident that these economic and business environment changes will bring positive results to Mongolia. Foreign investors will receive this in appreciation.
Furthermore, it is necessary for Mongolia to realize its internal resources better. Must leverage the commodity prices and economic potential. Need to take positive resolutions to diversify the economy. The banking sector of Mongolia is highly advanced. Furthermore, the telecommunications industry, mobile telephone services are profoundly developed compared to some other countries. We must highlight the development of these industries.
If this trend is maintained, Mongolia has a potential of turning to a hub of the financial services. Our company is aiming to support this.
- Please give advice to the larger business entities of Mongolia, particularly to those operating in the service and manufacturing industry, what focus on to avoid risks?
- Perhaps the first step for Mongolian companies is to implement the risk management culture into their corporate operations, not solely depending on the activities of the risk manager or operations manager for any of the risks that might arise in its business.
Generally, the risk management is an important topic that the BoD and the executive management team must discuss collectively and take measures to implement the risk prevention actions into everyday operations. The insurance is just a part of the risk management plan
It is possible to manage the risks, by creating a right risk management standard and adopting into everyday operations.
- Thank you for the interview.
Tenger Insurance has paid out 1,0 million usd insurance reimbursement to recover the fire loss of the Gobi JSC2018.07.18
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