The problem of choosing an insurance company is faced by both beginners and people who in the past had negative experience in purchasing a policy. Most often this is due to the unreasonable expectation of payments. Therefore, it is important to know how to choose the right company. It is important to understand how to take into account not only subjective factors, but also real financial indicators. Read more about how to determine which insurance company is better for CTP and any other type of insurance, read on.
Problem
Annually, 42 million car owners acquire CTP insurance and another 5 million - CASCO. After amendments to the legislation were made in 2014, customers seek only their insurer for damages. The amount of payment depends on the policy of the company. How to understand which insurance company is better to issue compulsory motor third-party liability insurance?
Search for information
A good CTP insurance company is a reliable company that can quickly fulfill its obligations . Even the most unfavorable insurer should be able to make payments and not go bankrupt.
The complexity of the choice is compounded by the number of companies operating in the market. How to choose from hundreds of organizations which insurance company is better for compulsory motor third-party liability insurance? You can, of course, conduct your own analysis of open information posted on official websites, forums, blogs and social networks. It will not be superfluous to know the opinion of former company customers. Do not forget about the annual ratings of insurers.
Collection of information
If we are talking about a small or little-known company, then the first thing is to check whether it has a license to conduct business. Only companies with the appropriate license can provide insurance services. In Russia there are more than 400 of them, and each of them has dozens of agents. The register of insurers is presented on the Bank of Russia website in the financial market section. It is better not to contact insurers registered in another country. More trust deserve organizations operating over 10 years in the market.
Payout Amount
The spread in damages is less than it was before. When calculating the cost of repairs, all organizations must apply the methodology approved by the Bank of Russia. Differences can only be in the timing of payments. This is how the situation looks in theory. In practice, in 2014, insurers raised 150 billion rubles, and transferred only 90.3 billion to the victims, while according to the law, 77% of the collected funds should be paid to victims. The explanation is simple. Firstly, in 2014 there was no unified methodology for determining the cost of repairs. Secondly, at the time of purchase of the policy, funds are paid to the cashier. An insured event may occur at any time in the future. Therefore, most of the collected premiums go to the reserve.
Financial stability
The ability of an organization to fulfill its obligations in any economic situation is reflected in financial indicators. It is especially important to analyze reporting when it comes to long-term cooperation. Even a good OSAGO insurance company may have problems with payment. What should I pay attention to?
The authorized capital must exceed the minimum established (120 million).
The growth of the organization’s assets reflects the positive dynamics of development, especially if it is carried out at the expense of the collected premiums. A good CTP insurance company has a large amount of free cash.
The number of concluded agreements must coincide with financial capabilities.
Insurance reserves most often do not exceed inflation. But their decline in dynamics is a bad trend.
Too high a payout level should also alert potential customers. Indeed, in essence, the organization’s earnings are collected bonuses. How can a company exist if it has paid customers more money than it raised?
Large companies transfer to other organizations up to 50% of the insurance portfolio.
That's how a good insurance company (CTP) works.
Reviews
Each case is individual. Even after analyzing the feedback on the forums, it is difficult to determine which organization is the best insurance company in compulsory motor liability insurance. All customers face the same problems:
- long consideration of the application (it may take a month to verify the documents);
- underestimated amount of payments (each insurance reconciles all calculations of appraisers with a reference to the SAR, the received value is adjusted for the return of the amount of VAT, and the rest should be paid to the client).
Most affected are customers who purchased an insurance policy in Crimea. Not all insurance companies have representative offices there. Therefore, customers have to return for payments to Rosgosstrakh.
Insurance rate
Low prices should alert potential customers. Dumping is done by small or completely new companies that are trying to attract customers. The strategy is relevant only at the first stage of work. Over time, it threatens bankruptcy. Chasing low prices when concluding a long-term contract makes no sense.
The amount of payment upon the occurrence of an insured event is calculated based on the tariff multiplied by the amount of coverage selected by the client. The resulting value is adjusted for correction factors. In the case of compulsory motor third-party liability insurance, this may be the age of the driver, place of residence, method of storing the car, driving experience, etc. The more inexperienced the driver and the older the car, the more risks the company will have to cover. This in turn will affect the size of the contribution. A penny policy cannot cover all the risks. The insurer will not fulfill the promise. The client will lose funds and insurance coverage.
The presence of bonuses and loyalty programs, on the contrary, has a positive effect on the image of the company. A large company can reduce prices for regular customers.
Ratings
In the ranking, companies are ranked in five categories:
- highly reliable - class A;
- satisfactory level of risk - class B;
- low level of reliability - class C;
- bankruptcy - class D;
- revocation of license - class E.
The best companies are further divided into three groups: reliable, very reliable and extremely reliable.
The agency does not evaluate work for free. Therefore, not all companies are included in the rating. At the same time, the absence of a company on the list does not mean that it cannot be trusted. People’s ratings are quantitative, and agencies are qualitative. To derive a more or less adequate assessment, one should rely on data from several sources for one long period.
Assessment scale "EXPERT RA"
The largest rating agency of the Russian Federation “EXPERT RA” annually carries out a detailed analysis of the activities of insurers for many indicators. All factors are ranked according to degree of significance.
External factors:
- volume, dynamics of changes in assets, equity, capital, insurance premium;
- position of the organization on the market (participation in associations, unions, reputation, brand, relations with supervisory authorities and specialization);
- corporate governance (owners' potential, risk management, organization structure, infrastructure, activity transparency);
- geography (the presence of a developed branch network).
Insurance business:
- insurance portfolio ( risk diversification , profit by type of insurance);
- customer base (the presence of constant counterparties, the proportion of terminated contracts, methods of distribution of policies, reinsurance partners);
- reinsurance activities (reliability, effectiveness and diversification of protection, risk reinsurance, the ratio of the amount of payments to own funds).
Financial indicators are analyzed for:
- liquidity and solvency;
- profitability and loss ratio;
- investment policy.
It is quite difficult to determine which is the best insurance company in compulsory motor third-party liability insurance. The rating of “popular” voting has the right to exist, although it is very subjective and biased. Reviews of real people are also worth looking at with skepticism, as any insurer has fans and opponents. Despite all of the above factors, it is possible to provide a general tone of feedback on the leaders of the insurance market in order to determine the best insurance companies in terms of OSAGO payments.
VTB Insurance
Over the 16 years of its existence, the insurance group has opened branches in 114 cities across all regions of the Russian Federation. Standard & Poor's international agency assigned VTB Insurance the highest BB + rating among Russian companies. In 2015, EXPERT RA Agency ranked the company among the most reliable. In addition to car insurance services, the company provides a wide range of other products: property protection, funded, investment programs.
ROSGOSSTRAKH
The oldest insurance group in the Russian Federation leads in the number of open branches. In the Expert RA ranking, ROSGOSSTRAKH takes the first place in terms of premiums, reserves and assets paid. Although, in some regions, cases of violation of the law were recorded when customers were forced to purchase car insurance policies. For such violations, the organization was temporarily taken away a license.
SOGAZ
Another large and good insurance company in compulsory motor third-party liability insurance takes the second place in the number of collected premiums in the Russian Federation. The structure of the group includes 9 domestic and foreign organizations serving 14 million people and 40 thousand legal entities. The main advantages of the organization include the optimal ratio of price-quality for CTP policies.
Final stage
Before making a final decision, it is worth visiting the offices of several organizations in order to:
- evaluate the level of service;
- request calculations and compare them;
- study the terms of the contract.
The best insurance company for compulsory motor third-party liability insurance will not only select an individual tariff, but will also tell you in detail about the main nuances of the contract.
Conclusion
It is difficult enough to determine which insurance company is better for compulsory motor liability insurance. Reviews of real people are subjective and most often associated with high expectations for payments. “Popular” ratings also do not provide an adequate assessment of financial condition. Official reporting is analyzed in detail by professional analysts once a year. But even after collecting all the information, it is difficult to determine which is the best insurance company in compulsory motor liability insurance. After all, there is also a factor of human error, from which no one is safe.