The Ministry of Finance decided to reform the CTP and has offered several innovations: the issue of the policy immediately for 2-3 years, increase the limit of evroprotokola to 100 thousand rubles, and the abolition of the ratio of the power of the car. According to most experts, the initiative, as always, will pay the owners.
photo: Kirill Iskoldsky
The Ministry of Finance proposed several innovations in the market of insurance. One of them is the insurance from for 2-3 years, so that the owner could protect themselves in advance and do not visit each year, the office of the insurance company. Insurers in addressing this issue are encouraged to consider a number of factors. For example, long-term contracts OSAGO did not fit into the system existing today in the coefficient of bonus-Malus (discount for accident-free driving. — Ed.) used when calculating the cost of CTP and fully sharpened it on annual policies.
Innovation will also require fundamental changes to the manner of application and other factors (e.g., factor depending on seasonal). The charge rates and separate coefficients can change more often than every three years, and this means that the introduction of multi-year contracts will negatively impact the loss ratio of this type of insurance. “For holders of multi-year policies increases the risk that their insurer during this time for whatever reason to leave the market”, — says head of Department on public relations of the SOGAZ Catherine twin.
The possibility of concluding contracts insurance for up to two or three years will also require significant changes in the procedure for calculating tariffs and contributions to compensation funds. “Long-term contracts in the conditions of economic instability and constant changes in the average cost of parts, materials and labor in determining the amount of expenditure on refurbishment could lead to financial instability of insurers,” — said the head of the Department of methodology of obligatory kinds of insurance “alpha Insurance” Denis Makarov. According to him, the strange actions of insurance companies in the event of any change in insurance rates during the period of multi-year contract CTP.
In SK Tinkoff Insurance believe that the relevance of the policy for 2-3 years is a big question because the cost can be excessive for many car owners. If such a policy can be used to pay annual payments, it could result in a risk of occurrence of unpaid unfair customer policies for which the insurer would be liable in full. In addition, this initiative will increase the operational burden on the insurer’s long — term policies will require increased operating expenses by tracking payments and collection of arrears.
“In our reality to accept the risk at a fixed price over three years is not possible: changing the exchange rate and the cost of spare parts, the customer moves from one risk group to another, there are some climatic events that affect accident rate, etc. All together will eventually have a negative impact on the financial stability of the insurance market and insurance market in particular”, — said the representative of the UK.
Evroprotokol 100 thousand rubles
Interestingly, another innovation of the Ministry of Finance to increase the limit of evroprotokola to 100 thousand rubles — is getting positive feedback from insurers and drivers. In the SOGAZ reported that the proportion of accidents drawn up without the participation of the traffic police, has tripled, today nearly 30% of motorists make car accident in the framework of the Euro Protocol. This suggests that the current limits are sufficient for the growth of popularity of the europrotocol and that its potential is far from exhausted.
Twinning in this issue is encouraged to consider the risks of fraud, including unscrupulous avtoyuristov: “According to a recent study by NAFI and the Institute of regional problems, about a third of professionals providing mediation services to recover refunds for CTP use in the fraudulent scheme. Extension of limits in the current environment can fold increase the scale of the problem. It will suffer from not only insurance companies, but ordinary car owners, which in some regions are already faced with the unavailability of insurance policies”.
Head of methodology and underwriting of compulsory insurance of IC “MAKS” Valery White believes that the Finance Ministry’s proposal to increase the amount of evroprotokola to 100 000 rubles., when the accident can be issued without the police, most likely due to the regular downsizing of the Ministry. According to experts, this measure will increase the possibility of fraud on capacity loss of the portfolios of insurers, which in turn will cause the next rise in price of insurance.
In “Tinkoff Insurance, by contrast, consider the extension limit of the Europrotocol positive innovation, because today drivers are initially set to a simplified procedure for the settlement without the participation of the traffic police. Scammers, by contrast, always prefer to arrange accident to the traffic police. But it is important parallel to make uncontested repairs, said a representative of the insurer.
Capacity is not considered
But another innovation, the Ministry of Finance to cancel the coefficient of the power of the car because “the link between this indicator and no accidents” — some market participants cause for concern. Cancel the ratio of the power will lead to the fact that the average price of the policy reduced. This will lead to a further decline in the profitability of insurance companies and further aggravate the situation with sales policies in the regions”, — said the representative of the insurance company. In his opinion, from this initiative will exclusively benefit the owners of expensive “steel horses”, which today can afford to buy a more expensive insurance policy.
As suggested by Catherine twin, terminate this ratio should not be: “the Relationship between engine power and accident rate do exist, as evidenced by the statistics: the most severe accidents occur, usually at high speed, which develops more powerful cars”.
On the other hand, this dependence is not so strong as it reflects the current graduation rate. “That is why the insurance community in the face of the RSA at the time he proposed to adjust it, making the gradation ratio of more soft: increase the rate for low-powered vehicles, and, conversely, reduce it for a car with a more powerful engine. Full cancellation ratio will lead to lower premiums for insurance and, as consequence, growth of unprofitableness of the insurance, which again will raise the question of the necessity of adjusting the base rate” — sums up the twin.