From New Launches to Strategic Goals: DEFEND's Journey in Romania with Florian Nedelcu

DEFEND INSURANCE GROUP made its entry into the Romanian insurance market in 2023. In this exclusive interview, we speak with Florian Nedelcu, the Country Manager for Romania, to gain insights into his evaluation of the past year and explore the future plans of this leading European provider of specialty automotive insurance. He also addresses the challenges faced and DEFEND's commitment to supporting the rising market of electric vehicles. How would you evaluate DEFEND INSURANCE GROUP's first year in the Romanian market? What were the key achievements during this period? DEFEND INSURANCE GROUP (DEFEND) has achieved very good results in Romania, becoming profitable within its first year. We aim to close 2024 with a remarkable threefold increase in the number of policies compared to 2023. Our team has grown, and we have strategically established three regional bases to ensure smooth operations nationwide.

From a product perspective, we have successfully launched DEFEND’s flagship extended warranty line, DEFEND Car Protect, which offers comprehensive coverage for sudden and unforeseen breakdowns throughout Europe (excluding Russia). With the sales of new vehicles increasing by 13% and used vehicles by 3% compared to the same period last year, we anticipate very positive results and are targeting new partnerships with car dealers. We have established cooperation for example with Eurial, continued our partnership with Business Lease Romania, and, especially in the area of GAP insurance, strengthened our relationships with brokers Renomia Broker and Safety Broker de Asigurare.

From the other side, what were the key challenges DEFEND faced in its first year in Romania?

The challenges as well as opportunities represent inflation and high interest rates and also increasing EU regulation of insurance products. The Value for Money and overall adequacy of our product for the client’s needs are the most important elements for us. To provide our clients with excellent value, we have further improved, for example, the coverage of our extended warranties in 2024 and that is not all. We continuously strive to innovate and enhance our products to meet the evolving needs of our partners and clients.?

You mentioned improvements in your key product line, DEFEND Car Protect extended warranties. Can you be more specific and explain the benefits of this insurance product for the customers? First of all, we have responded to the trend of lengthening factory warranties by increasing the age limit of eligible vehicles from 3 to 5 years for our programmes for cars with factory warranties. We have also added coverage for additional parts and extended coverage and limits for infotainment systems, which are becoming more common in new vehicles. In short, our extended warranties DEFEND Car Protect provide even better coverage and protection, which is important for both our partners and clients.

For car dealers, extended warranties enhance credibility. Providing extra years of warranty highlights the reputation and quality of the dealership, subsequently supporting vehicle sales. For customers, warranties protect against unexpected and very often high expenses caused by sudden breakdowns of their vehicles.

How is DEFEND adapting its product offerings to cater to the growing trend of electric vehicles in Romania? What specific products are you developing for this segment?

DEFEND was among the first in the market to introduce extended warranties specifically for electric cars. We offer programs for both new and used electric vehicles, providing protection for up to the next 3 years and covering all important parts including battery and charger. With the increasing popularity of hybrid vehicles, we have also recently added coverage for hybrid powertrain components to our warranties so we are offering this product for all types of motors including CNG/GPL. Additionally, our GAP insurance, DEFEND Gap, which protects against the loss of vehicle value, is available for electric vehicles. This coverage is particularly important as the value of electric vehicles can decrease rapidly.

Mentioning DEFEND Gap insurance, what benefits can customers and car dealers expect from this product?

As I said, this insurance product protects you against the loss of value of your car in the event of total loss or theft. Again, this product offers numerous benefits to both drivers and car dealers. As you likely know, cars depreciate rapidly, and primary insurance does not provide complete protection; it only pays the current market value at the time of the incident, which is usually significantly lower than the purchase price. Our DEFEND Gap insurance covers the difference up to the purchase price. This ensures the client has enough money for a new car in the same category and is very likely to return to the original dealer who helped them protect their investment.

As DEFEND continues to expand its distribution network in Romania, what steps are you taking to ensure high standards of service and support for your partners and customers across the country? We are a young company in the Romanian market but are backed by more than 25 years of experience in other CEE markets. We pride ourselves on our partnership approach, committing to be not just a product supplier but also a strong and reliable partner with an individual approach to our customers and partners. Our products can be customized in terms of branding, coverage, and eligibility criteria to meet our partners' needs and sales strategies. We provide continuous support throughout the customer journey, from initial training and marketing materials to claims handling. We also constantly invest in our employees to ensure the best possible service for our partners and customers. In short, excellence is our motto.

Looking ahead, what are DEFEND INSURANCE GROUP’s strategic goals for the Romanian market in 2024 and beyond, and how do you plan to achieve them?We see significant potential for continued growth in the Romanian market and believe that our insurance products will further develop the new and used car market. Our goal is to become the top choice for warranty programs. We are currently launching also warranty for trucks and during autumn our partners and customers can look forward to MOT insurance. With the support of our Czech headquarters, we are building a company positioned for the future. Our strategic focus remains on expanding our services, enhancing operational efficiency, and fostering a data-driven culture. Additionally, we are finalizing the process of obtaining an insurance agent license directly for our Romanian company, DEFEND INSURANCE S.R.L.

Are you interested in cooperating with DEFEND INSURANCE GROUP? Do not hesitate to contact us at [email protected] or +40 312 295 260.