The crisis threatens the direct insurance - Expert RA

The global financial crisis will lead to a reduction in the Russian insurance market, including retail insurance, and can also erase the future of direct insurance companies. According to estimates, Expert RA, the rate of growth in insurance premiums hull in the first half of 2008 amounted to 35,1%, in the second half of 2008 - already 15.3%. In 2009, in accordance with the adjusted forecast of Expert RA, the market for motor hull insurance will be reduced by 29% to 134 billion rubles. Under these conditions dramatically increases the level of competition in the Russian insurance market, exacerbated the situation with the dumping, according to analysts of rating agency "Expert RA". The main "chip" companies for direct insurance is the idea that once an insurer enters into a treaty without the participation of the mediators, respectively, it saves a considerable amount of money and can offer its customers cheaper rates. These savings should be significant, since the average commission to insurance intermediaries from 20 to 30% of the total insurance premium, and sometimes they even reach 50%. According to the company direct insurance, excluding costs of this article allows them to offer fares 15-20% below the prices of large companies - the market leaders. Work directly, without intermediaries reduce transaction costs of insurance companies and allows them to reduce costs, and insurance services. It is for this principle is the company making the bid on direct insurance in the West. "Since the moment of direct insurance are investment projects, their reliability ceteris paribus lower than traditional insurance companies - says Alex Janin, Head of the ratings of insurance companies," Expert RA ". - At the same time to break-even level, they can get an average of 4-5 years. the cost of doing business in direct insurance companies in the initial stage of their creation is much higher than the average level by investing in the organization of call-centers, the development of Internet sites and large-scale promotional projects. If a company has a strong direct insurance proprietor, ready to finance it, even in times of crisis, and provides competent underwriting policies, then it has every chance to survive this crisis and to take full advantage of the concept of direct insurance. Otherwise - it will be the first on the list for elimination. "