Scandalous “motor” to keep insurers in the black

Scandalous “motor” to keep insurers in the black


MOSCOW, December 28. /Corr. Danis Jumabaev/. The insurance market in 2015, despite the difficult situation in the economy, remained in positive territory only thanks to the increased rate of CTP by 60%.

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Although this decision has been criticized by motorists. However, the main voluntary insurance fees drop exceeded 20 billion rubles.

In 2015, the Bank of Russia obsessed with the insurers, resulting in the market left more than 70 companies, which is four times more than the year before.

In the coming year, reform the CTP continues: emergency drivers are preparing a multiplying factor, we will continue working on liberalization of mandatory motor insurance, and the number of complaints they promise to reduce.

Voluntary insurance – the policy to drop

In January – September on voluntary types of insurance had 587,2 billion roubles, which is 3.6% lower than a year earlier. While payments increased by 3.3% to 264,2 billion rubles. Hull, as one of the main types in the structure of voluntary insurance, became antiliberal market: premiums have fallen by more than 21 billion rubles, or 13%, the number of policies sold declined by 26.8% or 2.8 contracts.

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“Hull need to do something. This is a depressing indicator”, – said earlier the Chairman of the Central Bank Vladimir Chistyukhin.

Catastrophic collapse occurred in the life insurance – number of concluded contracts decreased by 38.6%, according to investment life insurance even more – by 78%.

Property insurance of legal entities by number of policies sold fell by 10%, the number of contracts for accident insurance fell by 12.4%. Moderate growth at 5% showed that the LCA market, as well as insurance of property of physical persons, which according to the number of policies sold increased by almost 14%.

“The main trend of the year – an unprecedented crisis of confidence in the industry, resulting in a catastrophic drop in the number of concluded contracts on all major voluntary insurance. Customers flee EN masse from the market”, – said the independent expert of the insurance market Andrey Krupnov.

Jumped by 60% “motor” has become a driver of growth

In April, the Bank of Russia has raised the tariff on CTP 40%, and expanded the tariff corridor to 20% (the boundary within which companies can compete on the cost of the policy). In fact, in most regions of Russia CTP went up by 60%.

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The sharp growth of tariffs in this type of insurance is reflected in the financial statements of insurers. According to the latest data of the Central Bank of the Russian Federation, for 9 months of the company on OSAGO have collected 154,7 billion of premiums, which is 46.5% more than the year before.

“Increase of tariffs on OSAGO, and the growth of the investment income of insurance companies has allowed them to record profits for the first 9 months of 2015 (95,7 billion against RUB 51.3 bn for the same period of the previous year),” – said in the financial stability review of the Bank of Russia.

All insurers for the 9 months collected 768,63 billion of premiums for all types of insurance, which is 3.6% higher than a year earlier. Payments increased by 9.3% and amounted to 364,15 billion. Thus, the insurance market remained in positive territory due to higher rate of CTP.

“If not for this factor , we would have a 4% reduction of fees on the market, there would be stagnation in all segments of the market, 2015 would have been without essential growth factors,” – said the President of the Russian Union of insurers (BCC) and the Russian Union of motor insurers (RAMI) Igor Yurgens.

In anticipation of the liberalization of the MTPL

When the BCC in December established a working group to develop proposals for the liberalization of tariff OSAGO and approve the appropriate project with the Bank of Russia. In November, the head of the BCC Jurgens stated that the Chairman of the Bank of Russia Elvira Nabiullina instructed to draw up a road map for the release of CTP from tariff regulation (now the tariff for this type of insurance establishes the Central Bank).

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The Chairman of the Central Bank Vladimir Chistyukhin in this regard, it was noted that it is necessary to move to the tariff was made free. “We by 2020 plan to abandon tariff regulation (CTP – approx. ed) and generally to move from mandatory (insurance – approx. ed) imputed to voluntary types of insurance,” he later supported the intentions of the Central Bank, Deputy Finance Minister Alexey Moiseev.

Executive Director RAMI Evgenie Ufimtsev notices that the extension of the tariff corridor in the CTP to 30%, probably in 2016, may be the first step in the transition to the free rate in the CTP. The Federal Antimonopoly service of the Russian Federation also supports the release of mandatory motor insurance from state regulation.

Emergency drivers will overpay for insurance

In 2016 for Russian motorists who often violate traffic rules (SDA), the PCA will introduce a multiplying factor CTP.

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The working group, which includes insurers, the CBR and the traffic police before the end of this year will determine the appropriate ratio.

It is suggested that the multiplying factor will be applied to motorists, with more than 5 violations in a year.

Under this group now falls to more than 2 million citizens.

However, the PCA does not exclude that the number of policyholders who would be affected, the increase coefficient CTP shrink up to 3 offenses per year.

E-CTP – paper not do

From 1 July in Russia first appeared in the possibility of buying a policy via the Internet. However, the first three months of motorists could only prolong the current CTP contract through the website of the insurers, where they initially were previously issued.

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From October 1 to buy the policy through the Internet has become an opportunity in any company engaged in this service. PCA argues that today such companies 17. However, the large insurers, Ingosstrakh, SOGAZ, Soglasie”, “Yuzhural-ASKO” this option yet.

Just in the past year has been issued over 50 thousand e-insurance policies, of the total number sold each year 40 million policies.

“Of course, 50 thousand E-policies in several million of existing contracts CTP is not so much. But we did not expect a sharp spike,” said Jurgens.

The owners of E-policies, it is recommended to print the electronic version of the document and carry it with you – might need traffic police to verify the validity of the policy.

Insurers are “squeezed” discounts

The discontent of the Russians on wrong application by insurers of the coefficient “bonus-Malus”(MSC), that is, discounts for accident-free driving when calculating premiums for CTP, was among the leaders in the number of complaints in the past year.

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As a result of the Central Bank in the third quarter recorded a sharp increase in the number of complaints they increased 2 times compared with the previous quarter.

The increase in complaints to the MSC, the Chairman of the Central Bank Chistyukhin explained poor filling of the insurers database AIS RAMI. “Insurers at one stage did not feel responsible for its quality content”, – he admitted.

The Bank of Russia has demanded from the PCA by January to improve the accuracy of the information in the database. In turn, in 2015, decreased the number of complaints about the imposition by insurers of additional services when selling insurance, and that there is no blank policies in insurance companies.

The register of insurers dropped by 76 companies

During the year the Bank of Russia revoked the licenses of 102 subjects of the insurance market, of which 76 are directly insurance companies, 24 insurance brokers and 2 of the mutual insurance company.

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However, in 57 insurance companies is now operating a temporary administration, and, as a rule, after which the regulator in most cases revokes the license. During the year the Central Bank have repeatedly accused the insurers as assets.

As of December 25, in the registry of the Central Bank remained 338 insurance companies. Experts believe that further “mopping up” the insurance market will continue in 2016. The number of companies in Russia is significantly higher than the scale of the market.

However in the past year continued market concentration around the major insurers. So, if in 2014, 80% of the market was shared between the 33 company, in the past year 24 of the insurer.

The forecasts are not comforting

New year the market is expected to be more complex than the outgoing one: the increase in premiums is projected at 2-3%, which is similar to 2015, experts of the analytical center “Institute of insurance” at BCC.

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SAR: for the nine months CTP insurers collected 155 billion rubles, paid 86 billion roubles

The growth potential of the CTP, which is due to the increase of tariffs, has run its course in the second quarter. The comprehensive insurance market and life insurance will continue to fall because of lower incomes and of effective demand. Expensive credit and financial problems of businesses will not allow to grow the insurance legal entities, and closure of Egypt and Turkey will hit the segment of the tourist and aviation insurance. Growth should be expected in property insurance of individuals, primarily due to the “boxed products”.

According to first Deputy Chairman of the Board of “SOGAZ” Nicholas prokopiya galushina, key innovations in 2016 it is expected the adoption of the amendments to the law on organization of insurance business involving increase of the authorized capital of insurers, regulation of financial rehabilitation procedures of insurers and the filing requirements for systemically important companies – now they are 22.

“The Central Bank will continue a strict and consistent policy towards participants of the insurance market. Insurers realize that their main objective for the coming years is not increasing sales at all costs and structuring of sales channels, improvement of quality of training of employees and reducing costs,” predicts the expert.