“RESO-Guarantee” may refuse insurance

MOSCOW, July 4. /TASS/. The company “RESO-Guarantee”, the second insurer in terms of premiums in the market CTP, as a last resort considers the refusal of the license for this insurance. About it it is told in published on Tuesday the company’s annual report.

“In an extreme measure we also consider the possibility of refusal of license for insurance to ensure financial stability and solvency of Companies in terms of the galloping growth of loss in this type of insurance,” the report says. Also, the insurer may elect a policy to reduce its share in this segment of the market (by the end of 2016 amounted to 15.1%).

The growth of “RESO-Guarantee” in the CTP market in 2016 was unplanned – due to the introduction of a system to increase sales in unprofitable regions, where there is a crisis of availability of insurance policies, in the South of Russia, in the Volga region, etc (“single agent” – approx. TASS), and also because of the requirements on mandatory sales of electronic policies from 1 January 2017. According to the Central Bank, the share of “RESO-Guarantee” in the CTP market in the first quarter of 2017 rose to 15.53% from 13.28 % in the previous year (only “Rosgosstrakh” – 23,12%, decreased from 28.06% in the first quarter of 2016).

The increase in tariffs on OSAGO in 2016 has not been sufficient to reduce loss of insurance, said in a report. And the law of natural compensation, designed to reduce loss-making, will lead to an increase in average payments insurance due to the requirements to repair car new parts, excluding wear and will not immediately reduce the activity of unscrupulous avtoyuristov, which are considered the main reason for the loss of CTP, the document says.

Net profit “RESO-Guarantees” in accordance with IFRS in 2016 has grown in 2,8 times, to 8.4 billion rubles, follows from the statements of the company. According to the Central Bank for the first quarter of 2017, the fees for insurance are 35% of the portfolio company (7.5 billion from RUB 20.9 billion RUB the total fees).

Unprofitableness OSAGO

In 2016, from licenses to insurance because of the loss of this type refused “VTB insurance” (market share of 0.17%), SG URALSIB (0,77% in 2016, of 2.76% in 2015), “Alliance” (renewed the license for CTP in early 2016, but then again abandoned it).

In the first quarter of 2017, the insurers paid insurance by 4.2 billion RUB more than the collected premiums, followed from data of the Central Bank. The President of the Russian Union of insurers Igor Jurgens, by the end of 2017, losses of insurers from the insurance will amount to RUB 21 billion Previously Jurgens said that without a rate increase for CTP insurers can begin EN masse surrender of license for motor vehicle liability insurance by the end of 2018.

As reported earlier, the Chairman of Bank of Russia Vladimir chistyukhin, Bank by the end of 2017 will assess the need to adjust fares.