The boom is delayed

Trends of 2007 and especially the first half of 2008 was an active expansion and complication of the social package for Russian companies, a significant increase in the proportion of enterprises, including social package in its various insurance programs. Relatively stable economic situation in the country is gradually led to a shortage of competent, qualified and experienced personnel in the labor market. The main factor of motivation and retention of employees in enterprises was the presence of a broad benefits package that includes both voluntary medical insurance and insurance against occupational accidents and diseases, and in some cases, the cumulative life insurance and supplementary pensions. Growth rate of contributions for LCA in the first half of 2008 reached 23.4%, which far exceeded the average market (17,6% excluding OMC). Growth rate of contributions for insurance against accidents and diseases (which also takes into account life insurance borrowers) were equal to 33.8%. Growth rate of contributions for compulsory medical insurance in the first half of 2008 declined slightly, but still were very high - 35,3%. In the first half of 2008, the level of market concentration, LCA decreased slightly compared to the first half of 2007, mainly due to large share of captive insurers (the share of the 10 largest insurance companies operating in the LCA, in the first half 2008 was 55,0% in the first half of 2007 - 59,3%). Propose solutions to traditional problems of the market for corporate life insurance are redundancy contributions for compulsory and voluntary insurance (OMS and DMS, compulsory social insurance against industrial accidents and occupational diseases, and voluntary insurance against accidents and diseases), lack of medical facilities and poor quality of the system general health, and insufficient tax incentives. Over the past year and a half on each of these constraints have been marked improvements. Since the summer of 2008, the government talked about reforming health systems and CBOs. The reform will create a unified classification of medical services that will improve the transparency of the industry. It also assumes a significant increase in spending on health, including through the increase in the rate allocations to the Health Insurance Fund (from 3,1% currently to 5.1% in 2010). However, a simple increase in funding of local self-government without a fundamental change in its principles will not solve existing problems. Nevertheless, no proposals for empowering citizens to exercise choice between the LCA and MLA, to introduce a system of local self-government market mechanisms has not been made yet. Lack of health care institutions in the country and especially in the region led to the monopolization of a market for medical services and the progressive growth of prices for medical care, poor quality of services provided. Svetlana Zhukova, director of health insurance "VTB Insurance": "the least pronounced deficit in a segment of specialized dental health services. This is due to the fact that the opening of the dental clinics do not require significant investment, as opposed to multidisciplinary health care settings. Accordingly, competition in this segment of health services is high enough, which in turn stimulates the growth of quality as a competitive advantage. Deficiency of full-profile medical institutions, providing the full range of necessary medical services is still quite pronounced. There were many small medical facilities providing limited services but they are not in great demand policyholders. " In response, some insurers are trying to solve this problem investing in creating their own clinics. "Of course, several clinics, open the largest insurers much easier position to service the insured for LCA, if you do not forget that the total amount insured for the last 6 years has increased by more than 4 times. Without these clinics is even hard to imagine what would have been queue to see a doctor in departmental hospitals. Most likely, they would just shut the attachment of new insured in March-April, and all the medical insurance business would be stalled until the next contract campaign. As a result, customers who were late for March with the conclusion of the contract , would remain without LCA "- says Marina Chernomorova, managing product" Medicine "RESO-Garantia With the realization of national project" Health "situation with the lack of health care institutions are gradually changing, but not as fast as it would like to insurance companies and their clients . Benefits will demand - there is no further problem - the lack of tax incentives - are actively addressed in the present. On the first January 2008, amendments to the second part of the Tax Code (Articles 213 "features determining the tax base for insurance contracts" and 255 "Salaries"). As a result, firstly, the tax on personal income has been transferred to the contributions paid by employers for long-term contracts of life insurance, payments on these contracts. Secondly, the increased possibility of writing off the expenses for salaries of contributions from insurance contracts of life and health (increased write-offs, extended insurance coverage within the debt). The above amendments have been one of the factors complicating the social package for Russian companies already in the first half of 2008 - including a social package of insurance against accidents, not only at work but at home, the emergence of life insurance. In addition, since 1 January 2009, the share allocation of contributions by LCA at the cost increase from 3 to 6% of payroll. The market was waiting for the amendment long ago, so it is currently spending many Russian enterprises have considerably exceeded the value of 3% of payroll. However, due to the crisis, with a hard cut costs businesses, this tax benefit in 2009 will have significantly less effect than it could. Adjustment to the crisis The global financial crisis has called into question the future of the market for corporate life insurance - no longer need to motivate staff, there is a need to minimize costs. Reduction in staff costs will be both due to reducing the size of the wage fund, and by reducing the benefits package offered to employees. At the moment, is still very difficult to assess the extent of impact of the crisis. According to Andrew Lyapunov deputy. Director of the Directorate LCA IC MAX "," enterprise in crisis will spread the benefits package and, in particular LCA, a group of the most valuable employees. Perhaps the restriction sector banks and investment companies. On the other hand, the future expansion of tax benefits (6% instead of 3 % LCF) makes LCA for businesses more profitable. Therefore we do not expect a significant reduction in the collection of premiums on LCA in the near future "- sums up Andrew Lyapunov. In crisis conditions, said Executive Vice President of Renaissance Insurance Group Sirma Gotovats, the products of DMS, contrary to some employers are not burdened the budget, but rather the opportunity to cut costs. "In periods of instability, people are particularly susceptible to stress, which often leads to serious illness, reduce the efficiency of the collective. As a result of the company, regardless of the scope and turnover are losing substantial funds. The use of modern LCA-software allows to achieve a significant reduction of morbidity in the community and the number of days disability. Thus, at a cost comparable to the annual salary of several employees, the presence of DMS in the social package will allow the company to significantly reduce their costs and increase productivity. These incentives and provide stability in the market LCA "- said Sirma Gotovats. More pessimistic forecast gives Maxim Avdeev, Head of the Voluntary Medical Insurance Company "Insurance Company" Accord-Vita: "Social care packages, I fear, will be reduced in all directions, taking into account how they are spelled out in contracts with employees ... ... In the event that the contract with the employee insurance is not a point of the social package, then the employer will have the opportunity to abandon the insurance principle. In other cases, will reduce the expense of service and smaller programs. "According to Expert RA, the level of contributions to VMI in 2008 will amount to 74.4 billion rubles ($ increase over the previous year, 18.4%), and insurance from the National Assembly and diseases - 30,4 billion rubles (growth 25,8%), the OMC - 346.5 billion rubles (growth 19,5%). In 2009, the impact of the crisis would be more noticeable - the market expects a decrease in contributions Corporate LCA and insurance of the National Assembly and disease. However, the stagnation in the market for corporate insurance personnel can lead to increased demand in its retail segment. Despite the drop in the market during the crisis, the positive trends that emerged in the first half of 2008, expanding tax credits , good health care reform and the CHI system - all this will lead to that with the release of the Russian economy from the crisis, corporate private insurance will grow faster pace and quickly exceed its pre-crisis level. "By virtue of their social orientation and do not necessarily own the market for corporate insurance temporarily reduced in connection with the crisis. According to current projections - by 10-20% in cash terms. However, private corporate insurance is also the first to react to growing out of the crisis. The structure of demand changes, most likely toward the predominance of insurance programs with the views of health care, directly influencing the decline trudopoter and efficiency - such as outpatient hospital services, ambulance, emergency hospitalization, "- gives his forecast Valery Nekhoroshev, Head Personal Insurance UK Standard Reserve and the Department of Personal Insurance "Moscow insurance company." Interview with Julia Alekhine, head of training company Ingosstrakh Life "In the first half of 2008 the growth rate of contributions for LCA and insurance from the National Assembly by Compared with the first half of 2007 exceeded the same average market. Why is this? outstripping growth is associated primarily with the fact that this market is far from saturation. Every year, significantly increasing awareness of citizens of Russia and employers about the opportunities and the relevance these types of insurance, strengthened corporate packages organizations. Last but not least, this is due to the efforts of most insurers' How do you assess the prospects for corporate life insurance in connection with the global financial crisis? The general trend of the market of corporate life insurance - a growth trend. In our view, in terms crisis, this segment of the market will consolidate, keeping rates at this year's ± 10%. There are factors that may contribute to the growth of this type of insurance, but there are constraints. Which of them will prevail depends on the economic situation in general. Due to what In your opinion, the company will reduce its social packages? Companies can reduce their benefits package, firstly, by reducing the number of personnel. Second, due to "cuts" of those parts of the social package, which are not standard. For example, insurance family member, insurance additional risks. But it is not necessary, it will happen. Experience shows that, cutting staff, the company often exacerbates social protection for the top management, thereby keeping valuable staff. Top-20 market leaders in LCA, 1 st half of 2008 Place of Company Contributions, thous. The level of payments,% Growth rate of contributions,% market share of 1 Group SOGAZ 8,396,138 49.01 2.48 15.80% 2 ZHASO 4,851,442 40.91 4.12 9.20% 3 ROSNO 3,527,553 50.46 -11.2 6 70% 4 Group Ingosstrakh 2,718,708 55.75 8.29 5.10% 5 RESO-Garantia 2524827 48.14 43.99 4.80% 6 Rosgosstrakh Group 1,898,542 42.3% 79.42 3.60 7 Group AlfaStrakhovanie 1,406,725 41.05 156.76 2.70% 8 Group "Kapital" 53.16 1,308,348 05.31 2.50% 9 Group "Renaissance Insurance 1,299,099 46.84 2.50 48.97% 10 1,206,501 30.47 MAX Group 112.36 2.30% 11 Group UralSib 1195459 50.89 48.46 2.30% 12 Group Sheksna 1002798 40.14 6.77 1.90% 13 Surgutneftegaz 989,029 39.84 7.57 1.90% 14 VSK Insurance House 811 789 37.71 40.15 1.50% 15 Energogarant 794 234 40.89 131.59 1.50% 16 Group Ugoria 644 515 33.08 60.67 1,20% 17 "Medexpress 522 747 80.28 122.33 1.00% 18 'Russia' 492 460 61.26 77.06 0.90% 19 Group Chulpan" 469 303 46.13 5.73 0.90% 20 Innogarant "449 556 47.89 256.69 0.80% Source : "Expert RA" Top-20 market leaders in insurance against accidents and illness, the first half of 2008 Place of Company Contributions, thous. The level of payments,% Growth rate of contributions,% market share of 1 Czech Insurance Company 2,465,167 0.72 235.11 15 40% 2 Group SOGAZ 1,537,685 4.14 9.60 -5.74% 3 "Aviva" 909 736 5.66 1154.29 5.70% 4 Group Rosgosstrakh 700 027 20.81 4.40 -40.52% 5 VSK Insurance House 647 753 07.18 30.61 4.00% 6 Group Ingosstrakh 506 345 18.17 -2.36 3.20% 7 Group AlfaStrakhovanie 499,638 8.16 55.83 3.10% 8 ROSNO 495 448 12.92 7 3.10% 9 Group Chulpan "311 312 01.02 -0.48 1.90% 10 AIG Life 287,879 9.19 38.61 1.80% 11 Group "Renaissance Insurance 286 343 15.45 119.73 1.80% 12 Group Ugoria 241,082 8.25 56.83 1.50% 13 'Russia' 221 222 3.33 68.66 1.40% 14-RESO-Garantia 217,100 8.64 -68.66 1.40% 15 Group UralSib 216 131 10.9 75.8 1.30% 16 Group Rosenergo "201 193 0.8 627.59 1.30% 17 Group" Kapital "10.52 41.63 196 577 1,20% 18" Energogarant 8.25 26.23 1.20% 19 The "Russian world" 189,113 7.55 1.20 98.7% 20 ZHASO 174094 55.83 75.95 1.10% Source: "Expert RA" The market dynamics of voluntary health insurance market dynamics of insurance against accidents and disease