Maxim Pushkarev: the insurance market is worthy competition deposits

© Photo : courtesy of the press service of VTB group CEO JSC VTB life Insurance Maxim Pushkarev. Archive photoMaxim Pushkarev: the insurance market is worthy competition deposits© Photo : courtesy of the press service of VTB group

The trends in investment and universal life insurance, RIA Novosti said General Director of JSC «VTB Strakhovanie zhizni» (enters into group VTB) Maxim Pushkarev:

— Until recently was known as the? If the person had savings, he kept them on Deposit at the Bank. Well, or at home, «in the Bank». This is not surprising — worthy alternatives before, in fact, was not. I was, of course, but mostly alternative investments were associated with completely different risks. But in recent years the market has changed dramatically — it started to offer quite a lot of new investment tools. At the same time, changes gradually and the financial behavior of people — they are more inclined to save than spend and consume. Hence, the more pronounced the need to preserve and increase funds. The Russians began to look for new opportunities. So I would say that the increase in investment and universal life insurance is associated with a counter movement of financial companies with their products to consumers and consumers to new tools.

Is though new, but generally understandable to the consumer a product that meets the needs, which have in any family. Because many think today about your future retirement, education for a child, the airbag in the event of trouble. And all these questions just convenient to solve with the tools of life insurance, which in many ways is similar to a Bank Deposit, but performs a protective function.

— Early investment life insurance was available only to the wealthy people, was a high input threshold. How are things now?

— The input threshold has decreased significantly in the last 2-3 years. If earlier products were sold only through the personal managers customers middle level and affluent segment, now they are available in retail, where the minimum contract amount is small.

Today to go to the program and with 100 thousand rubles. This fact also had a positive impact on the growth rate of the market.
In the result, the average receipt of the policy became much smaller is the trend of the market the last few years. For example, in our company it is about 1 million rubles, among wealthy clients and much more.

— What profitability demonstrate the life insurance policies on the market?

— Profitability always depends on the choice of an underlying asset is determined by the client. For example, the most popular to date asset our clients is the strategy of «Global wealth»: on the three-year contracts expiring at the end of 2017, the yield will be at the level of 5-7% per annum. For those contracts coli that massively expire in 2018, we expect yields above current interest rates on deposits.

— What dynamics shows your company this year?
— For 10 months of 2017, the total amount of charges of our company amounted to 15.4 billion, which is 1.5 times more compared to the same period last year. Projected that fees at the end of this year will grow by at least 50% compared to last year and will exceed 20 billion rubles. Net profit expected of at least 400 million rubles, which is also one and a half times more than in 2016.

As for next year, we expect that market growth in relative terms will slow to 30-35%, but it’s still an impressive increase in the amount of more than 100 billion rubles. Our company plans to grow somewhat faster than the market next year that will be due to two main drivers. First, we predicted significant sales growth through our market partners, some of whom we started cooperation in the second half of 2017. And secondly, after all of the processes of integration in the United VTB Bank we expect to see more impressive sales of all investment products, including coli from our company.

— What are your main sales channels? Whether to go for retailers that have a large incoming flow of the mass customer?

— To date, a significant amount of our sales have on the banks of the VTB group. But it is important for us and it is our strategic goal is that in 2018 at least 20% of the volume of us brought third-party partners. We are constantly expanding our partner network.
To cooperate with retailers, we do not plan. The fact that we do not need only the volume — we need, above all, high-quality portfolio, and, in my opinion, quality to sell an investment or life insurance there are sellers are not ready yet.

Today we can hear the stories that people signed the contract on the Deposit, and then it turned out that he bought an insurance policy. What is your main reason?

— Indeed, such cases, though rare, but on the market are the place to be. There are two reasons: one of them — poor sales, the second is the lack of understanding on the part of the client. Indeed, despite the growth, the life insurance products is relatively new to the Russian consumer product, and not everyone knows about its features, even when you buy it. As I have said, a quality portfolio, and hence should be of high quality sale. Therefore, this problem is being solved on two levels. The task of the first level — working with partners, we always pronounces them carefully and prescribe standards in terms of sales. We have a special unit that is staffed by professional coaches, to ensure timely training and support of staff of partner banks all over Russia. The task of the second level — work with the client. Our company has a service «Welcome call» within a few days after the conclusion of the contract our staff will be in contact with every new client and additionally recite the key terms of the product, including the right of customer to rescind the contract within 14 days without losing invested funds. We are for openness and honesty towards the customer, this is an important principle of our business.