In the Russian Federation, as in other countries of the former Soviet Union, insurance is ambiguous. Why it happened is unclear. Perhaps, because of the mentality of the Slavs, who always hope for the best and are afraid to make any troubles in advance.
In most European countries, the United States of America and other developed countries, the issue of the need for insurance is treated very differently. In this world, it has long been understood that whether we like it or not, there is always the possibility of an accident, illness, and sometimes it is better to reinsure yourself and your loved ones than to get into a difficult financial situation.
They also say that weak insurance companies operate on the market in the Russian Federation, whose reliability rating leaves much to be desired. Whether this is so or not, we analyze further in the article.
What types of insurance are there?
There are many types of insurance. It can be divided into personal and property. The first group includes such services that are related to the health of the person himself: life insurance, health insurance, accident insurance, medical and others. The second group includes all those services that are related to the property interests of people: real estate, car insurance, purchases, and others.
There are also such insurance services that are provided to legal entities: insurance of transactions, products, sales and many others.
If a person decided to insure himself, then he is faced with the problem of choosing an insurance company that could meet his needs and provide the necessary services.
Why do we need a rating of insurance companies?
The market is filled with various companies that provide insurance services, and it is sometimes difficult to choose which one is better. For example, Moscow insurance companies spend a lot of money on self-promotion . The rating, due to this, is improving due to the increase in customer flow. But will it be a full reflection of the real level of reliability of the insurer?
In the insurance business, perhaps, there is nothing more important for the insurer than the highest reputation in the market of provided services. If the company is not at the hearing, then only old customers who are more or less loyal to it will use its services.
The level of service plays an important role
In addition, positive feedback from people is very important. Psychologists often say that a satisfied client will recommend the company to 2-3 friends, and a dissatisfied one will tell 10 people or more about what poor organization served him. So in the matter of good service, all insurers should stay at the best level.
There are many more criteria that are important for the successful functioning of the insurance company in the market for the provision of insurance services for various risks.
In order to understand which of the insurers is the market leader and who is not a loser, it is compiled a rating of insurance services companies.
With the help of such a rating, it is quite easy to choose a suitable insurance company and be sure that it will fulfill its obligations without any pitfalls.
What criteria are given more attention in the assessment?
To find out the best insurance companies in Moscow, the rating must be prepared carefully, taking into account all possible indicators. They should show the level of solvency of the insurance company, the stability of its business relations, the presence of debt obligations.
In addition, it is necessary to understand the level of insurance payments, the structure of the client portfolio, as well as other financial indicators that will help to see the level of stability and financial condition of the insurance company.
Basically, the rating of insurance companies is based on an analysis of the following groups of indicators:
- Indicators of external stability.
- Insurance portfolio.
- Financial performance.
Consider each group of such indicators.
Indicators of external sustainability
Analyzing indicators of external stability, take into account the movement of assets, their structure and dynamics. In addition, the size of the authorized capital, as well as the total amount of the insurance premium, is taken into account.
Of no less importance will be an analysis of what associations the company is in, which has a market position, its relationship with state control bodies and the competence of management personnel.
Analyzing these indicators, it is necessary to take into account the management structure of the insurer, as well as its financial capabilities.
Considering external sustainability, conclusions are drawn for each regional branch of the insurance company: its profit and loss, position in the local insurance services market. Moreover, the rating of insurance companies in Moscow may differ significantly from the positions held by companies in other regions. Indeed, each city has its own income level, which is expressed by the level of solvency.
Insurance portfolio
Studying the insurance portfolio, you need to understand the structure of the insurance company. It is necessary to determine how profitable each type of insurance is and the total amount of possible risks.
The received data is compared with the client base. The quantity, structure and dynamics of the client portfolio are analyzed. It examines how beneficial the current insurance company is to the insurance company, what level of working volume the permanent insurers create, and how quickly new insurance contracts appear.
The policy pursued by the insurance company as part of reinsurance is also important. Are serious risks guaranteed that could lead to a high level of insurance benefits? The maximum level of insurance payments is compared with the total amount of equity.
Financial performance
Financial indicators are divided into three groups.
1. Liquidity and solvency ratios.
An analysis of different degrees of liquidity of the company shows how quickly it can pay off its debts if at some point all creditors demand a return on their investments. Solvency indicators show the need of the insurance company to attract additional funds from the outside.
In addition, the structure of accounts payable is analyzed, which makes it possible to understand the reasons for its occurrence and the terms that are necessary for full repayment. It also calculates the solvency brand and the adequacy ratio of own funds.
2. Profitability and loss ratio.
Return on assets indicators help determine the level of profit of a company for one service provided. The calculation of loss ratios allows you to assess the level of expenses that the insurer spends on its activities. An analysis is made of the sufficiency of the income that the insurance company receives for insurance payments, as well as covering its own current expenses.
3. Indicators of investment policy.
Using appropriate indicators, the development of the insurance company, the return on investment are evaluated, and the impact of those areas of activity in which optimization is carried out is analyzed.
You can’t focus only on public opinion.
The rating of insurance companies is the result of a complex calculation, which includes almost all the indicators that you can think of to evaluate an insurance company. Such analyzes should only be carried out by experts.
A survey of people about their opinion about the services of an insurance company is only a partial element of a long and laborious process that must be completed to create a truly objective rating.
You need to understand that during the survey, the human factor has a significant impact on the results. People tend to be influenced by advertising, imposed opinions. That is, analyzing insurance companies, a national rating should not be perceived as the only true one.
An insurance company may not be the best, but thanks to newspapers, magazines, television and other marketing techniques, the population may have a false opinion about its reliability.
Before any conclusions, it is necessary to correctly analyze all insurance companies. Reliability rating, compiled on the basis of the correct indicators, is able to correctly identify market leaders.
Consider how insurance companies finished last year and who ended up in the TOP.
Rating of insurance companies in 2014
After analyzing the results that insurance companies showed in 2014, we can conclude that last year became difficult for the entire insurance services market. There were no various surprises in earned income, a sharp change in position compared to 2013 ratings.
If we compare the amount of insurance premiums received (the money that the policyholders paid), then the three leaders who demonstrate the best results for the Russian market remained on the podium.
The first place went to the insurance company Rosgosstrakh, which received 105.2 billion rubles. The second is SOGAZ with an income of 105.2 billion rubles, and Ingosstrakh, which managed to collect insurance premiums in the amount of 65.8 billion rubles, is confidently in third place.
If we analyze the structure of their income, we can conclude that the largest amount of funds came from the conclusion of contracts for voluntary property insurance.
In terms of payments, which is one of the most important indicators for insurance companies, the three leaders remained the same. In the first place in terms of payments is the insurance company Rosgosstrakh, which carried out compensation for damages totaling 55.1 billion rubles. In the second and third place, respectively, Ingosstrakh and SOGAZ.
If we consider the volume of payments in relation to the insurance premium received, then in the first place will be IC "Alliance", "Ingosstrakh", as well as IC "Consent".
In 2014, the insurance company Rosgosstrakh leads in the number of contracts concluded. No less, she managed to conclude them in the amount of 34.5 million units. In second place is Alfa Insurance, which concluded 11.8 million contracts. The third place was taken by the insurance company RESO-Garantia, which concluded more than 8.4 million contracts.
What is in 2015 now and what are the forecasts?
Experts note a significant decrease in customer activity. This situation is associated with worsening economic performance and a drop in GDP. Indeed, the depreciation of the ruble significantly hit the pocket of both an ordinary resident and various business structures that need to supply products from abroad.
According to forecasts, only two types of insurance services will be able to maintain the rating of insurance companies in 2015: life and compulsory motor liability insurance.
Many believe that the market will shrink, and larger companies are literally ready to have breakfast by small firms that provide insurance services. That is, there is a tendency to enlarge the market due to the takeover of companies.
This, for example, is evidenced by such type of insurance as CTP. The rating of the Rosgosstrakh insurance company for the first half of the year in this type of insurance services increased compared to the same period of 2014. If last year the share of this company in compulsory driver liability insurance was 29.5%, now it exceeds 36%.
And if you analyze the increase in CTP fees , the rating of the insurance company IC RESO-Garantia has also improved. So, in 2015, she managed to increase the total amount of fees by 48.5%.
In 2015, the market tends to enlarge
According to the results of the first half of the year, the total market share of insurance companies, which are in the top ten, increased to 77%, which also speaks of the enlargement of the market.
If you want to understand whether to work with a particular insurer, it is best to find out its rating. St. Petersburg insurance companies or capitals may have different amounts of premiums collected due to different regional conditions, which determine the overall level of customer flow. At the same time, a properly compiled analysis will help to take this circumstance into account and understand which insurance company is right for you.