Very often a person in the course of a commercial activity or when trying to increase his funds gets the opposite effect. Business is closely associated with risks. They are external and internal, and can arise at any stage of activity.
Financial risk insurance: types, rules, conditions
The development of financial markets has affected all countries of the world. This led to the acceleration of globalization and liberalization, which directly affected all participants in the global financial industry. Each businessman in one way or another feels the influence of these factors, so he is forced to take steps to ensure the protection of his finances from unfavorable situations.
Insurance of financial risks in this context has become a necessary measure for each participant in financial markets, as there are now significantly more risk factors. This is due to the implementation of new financial instruments, systems and methods. The implementation of innovations is ideally designed to reduce risks, but this creates problems of a different nature.
This picture emphasizes the role of risk managers, as well as their ability to respond to events in a timely manner and make appropriate decisions. The only true in this case is the use of insurance and hedging instruments aimed at saving funds. Almost the entire future of the corporation depends on the right choice.
Financial insurance in Russia
The same tendency is also characteristic of Russia. Recent changes in the world of finance have forced the business world to completely rethink their views on doing business. Insurance of financial risks, along with the need to develop the entire industry, has become the most important task of the state. The continuity of economic cycles depends on how successfully this task is solved.
Nevertheless, the system of state influence on the private insurance sector is still not formed. This picture is a direct consequence of internal factors associated with economic reforms in the country. We should also mention the lack of a theoretical insurance base nationwide. Not classified financial risks specifically for the Russian segment and its features.
Features
Financial risk insurance is a measure taken in case of loss of assets of an enterprise or investor. The key word is “loss cases”. These factors can be of a different nature: funds can be poorly invested, take back positions in the securities market or simply stolen.
In general, the financial and credit and exchange industries are considered the most risky areas in the world of finance. But the first option admits a reservation: consumer loans or similar small loans can be considered a risk in the field of lending, where the insured is an individual - guarantor. There is no such tool on the stock market.
Types of risks
These include:
- Counterfeiting of securities.
- Counterfeiting of payment documents: payment orders, cash receipts or warrants.
- Loss of securities.
- The factor of turnover of counterfeit notes.
- Getting counterfeit bills into bank circulation.
- Participation of bank employees in fraudulent schemes.
- Theft, damage or destruction of material assets and money stored in a bank.
- The same applies to accounting documents, software and access to the bank’s servers.
The above types of risks are called financial risks, but they can also be classified as property risks. Regardless of their name, the financial market offers appropriate types of financial risk insurance. Let's consider them in detail.
Types of insurance
Given the extreme relevance of preserving the finances and property of legal entities, the following types of insurance are offered:
- Exchange risk. The exchange market in the first place may suffer from factors such as the impossibility of paying for transactions, the failure of the brokerage firm to receive commission payments from transactions, and unsuccessful operations with securities.
- Indirect risks become relevant when situations such as loss of income for reasons beyond the control of the company, unforeseen additional costs, loss of time and additional profit occur.
- Credit insurance is practiced in relation to deposits (insured by a bank or depositor), commercial loans or bills. Late repayment of loan obligations is insured by the bank.
- Insurance against unauthorized actions of state supervisory and controlling bodies. In this case, the process is considered from the point of view of various provisions of the Civil Code of the Russian Federation and represents a whole range of measures. Insurance may be aimed at partial or full compensation of damage. An insured event in this context is the shutdown of production processes at the enterprise. It can be full or partial. In the end result, the fact of the damage caused is considered. In addition, the shutdown of the enterprise creates risks for hired workers and a number of counterparties, manifested in loss of work, litigation and the resulting costs, violation of the terms of contracts with partners and other negative consequences.
History and reality
The rules for insuring financial risks in the Russian Federation are subject to Federal Law 4015-1, in force since 1992. According to this document, insurance is a procedure for damages with certain conditions. The financial object is the insurance object, and the insurance fund is the insurance tool, which is formed from the monthly contributions of property owners. When it comes to insurance of legal entities, the procedure applies not only to economic factors, but also to force majeure circumstances of a different origin.
As for the financial insurance of ordinary citizens (a relatively new service for Russia), here the insured event may be lost profits, unforeseen losses or litigation involving financial expenses.
In a similar manner, the risks of interest holders are insured. The relevance of this service is associated with a large number of defrauded equity holders who became victims of unscrupulous construction companies. However, this is not the only risk factor. Also, an insured event can be considered a sharp change in market conditions, price changes or default. In all cases, the guarantee of damages is the financial risk insurance agreement concluded between the client and the policyholder.
Terms of an agreement
Insurance conditions in the Russian Federation are regulated by the Civil Code of the Russian Federation. The procedure consists of several specific steps. The contract of insurance of financial risks must be executed in writing, but can be carried out orally. Such a solution to the issue also has legal force, but it is necessary to observe certain conditions, which will be described below.
If this type of relationship refers to mandatory types of state insurance, then the citizen is issued only an insurance policy, which is based on his oral request. Such a policy will have full legal force and is used to obtain damages. This possibility is provided for in Article 930 of the Civil Code of the Russian Federation.
Written agreement
Article 940 of the Civil Code of the Russian Federation stipulates that in certain cases a written contract should be concluded with the client, regardless of whether voluntary insurance of financial risks or other business instruments is carried out.
In addition, according to Article 941 of the Civil Code of the Russian Federation, the use of general policies is permissible when it comes to the need for multiple insurance of homogeneous property. For example, it may be goods for delivery. In this case, at the request of the client, several general policies can be issued in the name of different people.
Oral contracts
Financial risk insurance conditions are a set of provisions expressing the will of the parties. An oral contract becomes legal when all circumstances of its action are taken into account in it, and the parties are unanimous in their opinion. Contracts concluded in writing have some features. For example, this is the publicity of a document. This feature implies that the policyholder must sign a contract with any subject of law, who turns to him at his own request and is able to make insurance premiums. Public insurance contracts have a limitation period of not more than 2 years.
The methods of insurance of financial risks in the legal field allow the compulsory conclusion of an agreement through a court if the policyholder refuses to do so. The reason for this is Articles 426 and 445 of the Civil Code of the Russian Federation. In addition, insurance rates should be uniform for all customers. Reference to the law - Article 426 of the Civil Code of the Russian Federation.
Mandatory conditions
In order for the insurance contract to have legal force, the following points must be indicated in it:
- Definition of an insurance event.
- Territory of the insurance contract.
- The object of insurance.
- The amount of insurance.
- The procedure and terms for damages.
- Contract time.
- Policyholder liability period.
- The amount and method of paying insurance premiums.
- Is it possible to make changes.
- Types of measures when evading obligations of one of the parties.
- How disputes will be resolved.
The contract may also indicate individual conditions previously agreed by the parties orally.
The procedure for concluding a contract
In the field of insurance of financial risks associated with property losses, various systems operate, differing in tariffs and the list of services provided. You should not bet to the insured who is willing to provide low premiums. This may be due to the limited list of services provided.
In practice, there are frequent cases when insurance companies resort to various tricks in order to avoid compensation for damage. The true indicator of reliability is not the experience of the company and not customer reviews, but an assessment of financial stability indicators, a place in independent ratings and tariff calculation methods.
Some companies offer ready-made tariffs, with others this issue can be discussed individually. The most reliable method is comprehensive property or risk insurance. A detailed procedure for concluding a contract is regulated by article 48 of the Civil Code of the Russian Federation.
Definition of an insured event
The Civil Code pays special attention not only to the insured, but also to the injured. Based on the current legislation of the Russian Federation, damages are provided for:
- The process of establishing an insured event.
- Determination of compliance with the conditions specified in the contract.
Evidence base
According to the contract, the policyholder is obliged to make a decision on compensation for losses, if at the previous stage the fact of the occurrence of this case is established. The following documents should serve as the basis:
- Statement of the victim with a description of the insured event.
- List of destroyed, stolen or damaged property. The financial risk insurance system in this case involves the provision of documents and other evidence of financial loss.
- Insurance Act.
If in the case of property insurance, the procedure for drawing up an act is clear, then in the financial field this can raise a number of questions. Regarding financial losses, this can be accounting documents that recorded the fact of non-payment of a loan, a certificate from law enforcement agencies about damage, theft or destruction of funds, etc. 3 days are allocated for the formation of the document.
Payment procedure or refusal
If a criminal case has been instituted on the fact of the insured event, then the issue of damages may be postponed until the end of the process. If the case is not insurance, compensation is not paid. A written notice of this is sent to the victim.
Insurance of financial risks of the company allows the outcome, in which the court determines the culprit that caused financial or property damage. In this case, a decision is made on compensation for damage by this person, and the insurer is partially or fully released from the obligation to pay compensation.