Correction for loss-making

Finance Ministry expects that the adjustment factors will contribute to the growth of premiums for compulsory motor TPL insurance by 10-15%. Basic tariffs Treasury has decided to leave the same, however with the new amendments in several cities OSAGO become more expensive. As told RBC daily, Deputy Director of Financial Policy Department, Ministry of Finance of Faith Balakirev, while the government project is not sent, as he is in consultation stage. It is planned that the document will come into force on 1 March this year. "Base Rate, we decided not to change and to solve problematic issues through the alignment of factors, - says Ms. Balakirev. - If after a certain time after March 1, for example one or two quarters, the analysis of the reporting of insurers, we can see that the situation of loss-causing concerns, we turn to the question about changing the basic rates for compulsory motor TPL insurance. The change in base rate CMTPL Public Transport Treasury considers inappropriate, since the federal budget for 2009 and forecast figures for three years already taken. As stated in the explanatory note to the document, the spread level of payoff (the ratio of payments to premiums) for individual regions is large: in the first half of 2008, the level of payments in the Arkhangelsk and Murmansk regions exceeded 100%, and in the Chechen Republic and the Jewish Autonomous Region was less than 40%. "This situation forces companies to compensate for the lack of insurance premiums in areas with a high level of payments by premiums collected in regions with low payments" - note the Finance Ministry. Therefore, the Finance Ministry, having estimated loss ratio CMTPL in each region, the town regrouped to territorial odds and made some adjustments in other factors. In particular, increasing the coefficient on tariffs for compulsory motor TPL insurance for auto power from 50 to 70 hp from 0,7 to 0,9, among which a large proportion of older domestic cars. At the same time, powerful cars ratio was reduced. In addition, the Finance Ministry proposes to increase rates, taking into account the age and driving experience (an experienced driver at least three years will have to pay even more). For example, the rate for drivers younger than 22 years experienced at least three years to grow from 1,3 to 1,7. The ministry believed that the adjustment factors will reduce the loss ratio OSAGO and will significantly improve the balance of tariffs on a number of risk factors and the growth of total insurance premiums CMTPL by 10-15%. " The head of the Federal Service for Insurance Supervision Ilya Lomakin-Rumyantsev said that has not yet familiar with the draft regulations the Ministry of Finance. "Insurers are always interested in raising tariffs, but the decision on the formation of tariffs should be based only on accurate calculations. Otherwise, they may be overstated, that the social unjustified," - added Mr. Lomakin-Rumyantsev. Deputy director of VSC Eugene Ufimtsev notes that the Government of the Russian Union of Insurers (RSA) and insurers to do some serious work in order to bring the loss ratio CMTPL a planned government level - not above 77%. "If we talk about sustainable companies of the Ministry of Finance will help them to improve its loss ratio CMTPL - believes deputy general director of Zurich. Retail Sergey Efremov. It should be borne in mind that the amendments will enter into force when the crisis is over, so medium and small companies will become even harder to stay within the established loss. " According to the vice-president Andrew Baturkin SAR, the adoption of the project can help insurers OSAGO in regions where this type of insurance causes the most problems, "but this is an interim step." In this case, Mr. Baturkin notes that the cost of compulsory motor TPL insurance companies after March 1 will increase, due to the introduction of direct claims settlement and simplification of the accident. It should be noted that the Finance Ministry also proposed to limit the cost of commissions to agents: According to the draft, they should not be higher than 8% of the cost of the insurer to OSAGO. "The establishment of the commission agents - an attempt to combat unfair competition: the Ministry of Finance saw the problem of rising dumping and discounts. The next logical step would be to impose sanctions for violations of this rule," - says Mr. Baturkin.