Insurers are asking the Finance Ministry to change the law on CTP too fast

© RIA Novosti / Alexei Mangalapura in fotobanka insurance. Archival photoInsurers are asking the Finance Ministry to change the law on CTP too fast© RIA Novosti / Alexei Mangalapura the image Bank

The insurers asked the Finance Ministry not to change the law on insurance too soon in their opinion, first, the Ministry of Finance and the Central Bank need to agree on the liberalization of the basic rate, to give the insurance companies a 1.5-2 years to get used to the new rules, and only then to revise the correction factors, or to introduce such innovations as the three-year policy, told RIA Novosti the representatives of insurance companies.

«We have repeatedly said that the process of charging should be approached very gently and offered at least a two-step transition. In the first phase — adjustment of base rates, that is fully consistent with the actions of the Central Bank today. At the second stage – after 1.5-2 years – the release rate and factors that would take into account the individual characteristics of the insured», — said the Agency development Director of insurance IC «MAKS» Sergey Pechnikov.

The Ministry of Finance of the Russian Federation proposed to consider the power of the vehicle region where the vehicle is registered in the calculation of tariffs OSAGO, with corresponding amendments on Wednesday reviewed the newspaper «Vedomosti». Instead, the Ministry proposes to use new factors: style of driving — violation of the rules, the harshness of braking and rebuild, the frequency and duration of use of the machine, the speed of movement. It is assumed that motorists will be able to purchase insurance policies over three years.

According to Pechnikova, in the next two months, the Central Bank will hold the adjustment of tariffs for CTP. The draft guidance the regulator published in June, he suggested the extension of the corridor of rates of the insurance tariff and the transition to annual process of calculating a so-called coefficient of bonus-Malus – which reduces the price of the policy for accident-free driving. Now it is calculated on the date of expiration of the last contract of insurance.The measures proposed, the Central Bank should be the first step towards the liberalization of insurance fees. «And we believe it is imprudent to come up with any innovations in the legislation for insurance as long as the whole market, insureds and insurers are not systematically go in for a new wage scale,» said Pechnikov.

Discomfort in a relationship

According to experts, the abolition of the coefficients of territory and power can lead to a significant deterioration in the CTP, as it is from these options depends primarily on the loss ratio of insurers.

«To understand what will implementation of these proposals it is sufficient to look at the situation from a voluntary liability insurance (dsago) is a whole market or refused similar insurance, or tightened the terms for the insurance of such risks, as a result of unlimited growth of fraud in this segment,» explained Pechnikov.

Not like the insurers and the idea of the Ministry of Finance on a three-year insurance policies. According to Deputy General Director of «Ingosstrakh» Ilya Solomatin, this is not in any country of the world. The expert explained that the introduction of this kind of novels can seriously affect the internal processes of insurers: the formation of reserves and costs of the proceedings and the terms of the contract with the client.

«Each year the insurer is obliged to look at how, for example, abnormalities in a specific consumer per year, and after doing the adjustment rate. And how to do it, if a person has a three-year contract? It brings discomfort in relations between the two sides,» said Solomatin.

«The proposed charging algorithm will not allow us to assess the degree of risk in entering into long-term policies, which means they can show increased profitability that negates the effect of all innovations», — agrees the head of Department underwriting «absolute insurance» Eugene Ilchenko.

Need approval

In General, insurers do not object to the proposals of the Ministry as they provide individual and fair approach to each client. However, all these changes must be coordinated with the measures taken by the Central Bank, experts stress.

«The amendments of the Finance Ministry for liberalization of the insurance must be at least synchronized with the Central Bank, and even better with the insurance community to these initiatives was for the benefit of consumers and all stakeholders,» said Solomatin.

«There are norms about what policies to write, based on personal characteristics of the driver that telematics is the establishment of individual coefficients depending on the number of violations of traffic rules allow a particular client. This is a normal process, it corresponds to world practice», — he concluded.

In a press-service of the Ministry of Finance RIA Novosti reported that at present, the revised bill on insurance is under negotiation with interested Federal enforcement authorities and Bank of Russia. In a press-service of the Central Bank of the Russian Agency said that the Bank of Russia will formulate its position after studying the document.