Insurers have procodile profit. Is it true that insurance is unprofitable

© Fotolia / Gino Santa Mahavelona accidentInsurers have procodile profit. Is it true that insurance is unprofitable© Fotolia / Gino Santa Maria

Because of the expansion of tariff corridor the price of insurance in the summer could increase by 20 percent, and in 2020-m fares and is sent to float freely. About the reasons of the next rise in price of car insurance and what insurers spend customers ‘ money — in the material RIA Novosti.

Now the base rate — up to 3432 4118 rubles. The Bank of Russia extends corridor tariff from 2746 to 4942 rubles. That is, insurance may be cheaper. But purely theoretically.

The main purpose of the changes is to provide insurers additional income. «Approximately srednevzveshanny driver will pay for vehicle insurance policy seven thousand rubles, now the average driver pays 5800 rubles for the policy», — declared the Chairman of the Central Bank Vladimir Chistyuhin.

According to estimates of the Bank of Russia, the loss of all insurers from the MTPL in 2017 has reached 15 billion rubles, and the failure rate estimated by analysts of the Central Bank to 47 percent. Therefore, in the autumn, the regulator plans to switch to «automatic» extension of the tariff corridor.

How and how much — representatives of the Central Bank while refuse to speak. And from the middle of 2020 it is planned to cancel all restrictions, including tariff corridor, and raising rates. Then the price of insurance will go to free swimming, as the dollar in late 2014.

Sounds scary, but this reform option insurance is much more humane than what is offered to insurers. In October last year, the Russian Union of motor insurers (RAMI) has submitted to the Central Bank «proposals for the transition to a free education of tariffs on OSAGO».

The main thing in this document — the right of insurers to set their own premiums to the basic rate. From 1 July 2018, insurers would have discretion to determine CT (the ratio of site primary use of the vehicle), FAC (factor of age and experience of the driver), KO (coefficient restrictions on the permit behind the wheel), KM (the power factor of the motor) and CRC (efficiency car with a trailer).

For a Central Bank had the right to regulate only the rates of accidents and traffic violations and impose the maximum rate of the base rate. Which, by the way, the insurers offered to increase to 30 thousand roubles (now for cars — 4118 rubles).

And the complete refusal by the Bank of Russia on regulation of tariffs OSAGO was assumed since January 1, 2020. RAMI had intended to retain only the Central Bank the right to fix the bottom (!) the boundary of the tariff corridor «to combat dumping», and a minimum list of mandatory risk factors that insurers must consider when setting tariffs.

The law is harsh

Although the reform of the Central Bank’s softer sentences PCA, in the automotive community are extremely dissatisfied. And it was not the tariff per se, but the fact that motorists are forced to pay for problems created by insurers.

The profitability of insurance began to decline after 2012, the insurance issued a law «On protection of consumer rights», and in 2014, increased the maximum payment for CTP from 120 thousand to 400 thousand rubles. Obviously, this would force insurers to radically revise approaches to risk assessment.

But this is very seldom done, and insurance companies continued to compete in who will sell more policies. By and large, the entire risk management was reduced to a certainty that the average car owner does not want to get involved in lengthy and complex litigation and silently agree with the amount of compensation that you will deign to offer him insurance company.

As it turned out, the sellers of insurance grossly underestimated the desire of the Russians to justice. Just a couple of years in the country formed a community of lawyers that specialize in knocking out of the insurers payments to be allocated to the owners of insurance policies by law.

«People are interested in, grouped, attracted professionals and put all the flow. Turned the whole gang,» complains the President of the Russian Union of motor insurers (RAMI) Igor Yurgens. However, he forgets to clarify that decisions on the level of compensation taking the courts on the basis of the current legislation.

So what about any «robbery» of the question. In any case, on the part of policyholders.

Where the money goes

But the insurers have questions. A significant proportion of their losses accounted for by litigation with customers. According to RSA, the volume of insurance payments on the court in 2017 amounted to 37.4 billion rubles, of which only 17.9 billion represented the actual insurance benefits (a basic requirement for damage from an accident).

«Overhead costs that are not associated with insurance activity», i.e. the fines, penalties, damages, moral damages, examination, and intermediaries, has left 19.5 billion. Thus, the amount spent by insurers on litigation 4.5 billion exceeded total annual loss from insurance.

This is what happens. Assume that the insured car gets into an accident. Damage to, conditionally, 100 thousand rubles. The owner is quite willing to settle for half the amount.

However, the insurance company assesses the damage only in ten thousand. Outraged, the client accesses avtoyuristam, and insurers are being dragged to court.

They hire the expert, who by all hook and crook justifies the ten-thousand damage. The court rejects this assessment, demanding payment of the required 100 thousand.

But the insurance does not surrender, contested the decision in the higher courts, attracting more of the «right» experts. The trial has been delayed for a year or two, and the amount of penalties and interest is constantly growing. In the end, the insurance company loses the case and instead loses 50 thousand and 150 thousand.

After that, I think the insurers change their pattern of action? Wrong — they are stepping on the same rake again and again. Only getting louder and louder demanding higher rates to compensate for their losses.
Without increasing

So do I have to raise tariffs on OSAGO, to save insurers from losses? The answer to this question can be given, for example, «Rosgosstrakh».

In 2014, the company reported net profit of 4.4 billion rubles, however, then recorded continuous losses: in 2015 — 4.6 billion rubles, in 2016-m — 33 billion, in 2017 — 55,6 billion.

The Russian Union of motor insurers often refers to this, stating that the same fate awaits all of insurers, if not to raise tariffs OSAGO. However, the new head of the Board of Directors «Rosgosstrakh» Mikhail Zadornov disagree.

According to him, the company incurred losses due to the fact that over the last ten years have done nothing, «neither from the point of view of an it platform, technologies and network management who are in a terrible state, nor from the point of view of basic principles of control». There is a suspicion that the same is true of the vast majority of the Russian insurers.

«In «Rosgosstrakh» besides, from top to bottom was dominated by theft. And then we say that the company got burned on the CTP?» — outraged Zadornov in an interview.

It is significant that after the change of owners and managers of «Rosgosstrakh» in the first quarter of this year, for the first time in many years, made a profit of 1.2 billion rubles. Without an increase in prices on OSAGO, only by strengthening control over sales and «more analytical approach to settlement of losses».

«We see where there are signs of fraud or over-payments, explains new CEO Nikolaus fry. — All this gave a strong positive effect. We can say that already a year «Rosgosstrakh» insurance sells profitably». The conclusion is obvious: instead of new tariff increases for car insurance the Central Bank it would be better to attend to the level of professionalism among the «captains of the insurance business».