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Thursday, December 8, 2016

The system of insurance predicting a collapse


“Snowball waiver of insurance” and complete collapse of the system, insurance experts predict in the near future. The reason is the shaft of the fake insurance policies, and these drivers refuse to register because of the extremely high prices. Insurance companies take urgent measures, among which – the total replacement of forms of insurance. But it is unlikely to help.

The new form

“The insurance company does not want to understand that the main thing that leads to evasion and insurance fraud in this area – inflated prices”

The Russian Union of motor insurers (RAMI) has announced the introduction from 1 July the new forms of insurance, significantly increasing their degree of protection, said Thursday the President of RSA and the Russian Union of insurers (VSS) Igor Jurgens. “It is expected that by July 1, 2016, simultaneously all forms of insurance will be replaced,” – reports RIA “Novosti” statement by Jurgens.

According to him, this measure will allow to withdraw from circulation counterfeit policies, and complicate the ability to manufacture the new counterfeit and that it will challenge policyholders, whether to buy now fake policy, because after July 1 need to purchase it again.

Later Executive Director of the Russian Union of motor insurers (RAMI) Evgenie Ufimtsev said that the decision on the procedure is still pending. “We said today that we change the form of CTP. This time. We said we would do it simultaneously. That’s two. Third, we said that the decision on how this will be done has not yet been made, because today was decided just about changing the form of the blank. We even form not yet seen,” said Ufimtsev TASS, adding that the renewal date of forms of insurance may be shifted from 1 July to later date.

Ufimtsev assured that to renew forms of insurance offered FGUP “Goznak”. Goznak told what to do, and it is better simultaneously. This request was of the “Goznak” to do simultaneously. Insurers wanted transition, but he says it make a better one”, – said the representative of RSA.

At the same time, the Federal state unitary enterprise “Goznak” said that the question of immediate renewal of insurance policies from 1 July is not. “We are with them (the Union of insurers – approx. OPINION) on the date did not. It is wrong to do so simultaneously, to make a fuss. We mean when we talk about replacing that with a specific date, so they were given a new, not changed those in circulation,” – said the representative of the company Natalia Nikiforova.

Other measures

The second unit of work in the framework of the “road map” for anti-counterfeiting policies will be the strengthening of measures to combat the distribution system of fakes. Already out of 41 delegation of the domain name; 19 blocked hosting accounts; violations are rectified on 11 resources; blocked 104 a social networking account; blocked 73 groups in social networks; blocked two ads in Yandex.Direct”, leading to bogus sites; removed 192 publish on forums and message boards, according to the website of the Union of insurers.

Another important factor in minimizing the spread of counterfeits will be collaboration with the traffic police for verification of insurance policy using the system auto-commit violations. At the initial stage of a pilot project to determine the presence of the insurance policy will be checked those drivers who have already made the traffic violation, such as speeding, said the head of RSA.

Jurgens added that the situation with the use of fraud in insurance has already received a public response. Currently discussing a legislative initiative to increase the penalty for driving without insurance. Especially important is the decision due to the fact that from 1 January 2016, the company launched a 50% discount of the penalty for prompt payment within 20 days. This measure partially serves as the motivation for use of fakes, therefore, an important additional economic leverage in the form of high fines for those who drive without insurance or using a false letterhead.

Predictions came true

“Policies that are issued, continue in effect, and the new video will be issued on new forms, – said the newspaper VIEW, the Chairman of Movement of motorists of Russia Victor Pohmelkin. – According to the law to force change to existing policies on other forms they can’t, and the law, they can not change.

“But if they think that thus solve the problem of the struggle with fake insurance policies, they are wrong. The insurance company does not want to understand that the main thing that leads to evasion and insurance fraud in this area, inflated tariffs,” – he stressed.

“They introduce a new standard to be less fake insurance policies, – said the newspaper VIEW Chairman of the Federation of automobile owners of Russia Sergey Kanaev. – But I think it is unlikely that it will help them, because it’s just a matter of time, brokers get to write off the first sample, will send to China, and China starts on the same factories to produce exactly the same fake policies”.

He noted that insurers are taking steps to combat the false policies of their own, and this is no coincidence. “They wanted to be helped in the traffic police – recorded the absence of policies from cameras. But Deputy head of the Ministry of internal Affairs Vladimir Kuzin said that they can only do that by 2017, because we need to change the legislative framework, etc. that’s Why they’re such a desperate step,” said Kanaev.

“If a person insures the car, and the rest do not insure, why would he do that”

“Nothing good insurers no, because the number of fake insurance policies even according to their calculations – 20%. I warned him about this back in April 2015 on the Council for human rights from the podium. And he said to me: “shouldn’t frighten Us, scare us for 10 years”. Nevertheless, the predictions came true.

Why are they so quickly do it? If they do not decide, by the end of 2016 the system of insurance just discreditied ourselves – we pass the point of no return, when more than 50% of people will refuse to buy insurance. Not here to save the situation with some fines: they appealed to the government to increase the fines. They said that in such a difficult time will not be increased. They appealed to the traffic police, told them that there is no legislative base. And so insurers are left alone with the problem”, – said the Chairman of the HEADLIGHTS.

In his opinion, “we need to establish a civil dialogue and to organise propaganda and PR company. Otherwise, you can talk not so much about the loss of insurers, and a more global problem, when it will return in 90-e”.

“If a person insures the car, and the rest do not insure, why would he do that? If every second has no policy, then those who do not receive compensation, and what sense it to insure if the system is not working? Get a snowball of rejection insurance,” he explained.

Calculations

The Russian Union of motor insurers have also submitted calculations of insurance payments in 2015, according to which on each rouble of the insurance premium will account for the ruble payments. As explained by Igor Yurgens, the insurance is designed so that the premiums received in the year 2015, only a quarter of the compensation is carried out in 2015, the same year. Policy, bought this year, is valid and in the following year, and the loss of it can be resolved a year later.

He recalled that, according to the RSA, in 2015 the market in General insurance were collected 220,2 bn and paid – 121,9 billion rubles In the media this information was presented in such a way that the difference (considering the cost of insurers doing business) is the profit of the companies. However, such assertions have nothing to do with reality.

In the structure of claims on premiums 2015, excluding 23% of the cost of doing business (which are provided by law for the organization of the sales system CTP) insurers for payouts is about 169 billion roubles, from them 157,9 billion roubles will be implemented in the period 2015-2018.

The remaining of the order of 11 billion roubles will include annual payments of 3 billion rubles of penalties and fines which are not accounted for in the statistics. Leap payments on life and health due to the expansion of limits and simplification of the procedure for compensation will add to the loss of about 5.5 billion rubles in the structure of payments for 2015.

Thus, the bottom line is the insurers will get 2.5 billion rubles, which is approximately 1% of the profits, but as a result of the potential growth in average payment because of the exchange rate change and the need for indexation of price reference to calculate cost of repairs, this amount will be offset.

Jurgens recalled that earlier, the Central Bank pointed to the fact that, according to official statistics, in the first nine months of 2015, the combined ratio CTP has exceeded 100%, according to the RSA, the year closes with the same rate, and in 2016 the situation will be more complicated.

Output, in his opinion, would be a shift to liberalization of tariff OSAGO and the possibility of forming a “flexible” system of charging, when for careful drivers policy price will be reduced drastically, and for emergency increase.

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