In the summer of 2020, three insurers from the top 10 of the Central Bank’s reliability rating increased their rates for cargo insurance by 1-3%. Among the top 20 participants, the number of those who increase the cost of insurance services is higher.
Growth is expected to continue in the fall. Almost half of the largest companies in Russia have already announced that they will increase the price of insurance for at least new customers by 0.5-2%. And this (judging by the situation on the foreign market) will be just the beginning.
Why prices for cargo insurance are rising
Reasons for price changes in cargo insurance:
- increase in the cost of reinsurance;
- growth of unprofitableness in the segment;
- more frequent fraud on the part of the policyholder;
- transfer of the service system to online mode.
Reinsurers and loss ratio
It was known back in March that reinsurers would increase the price of their participation in covering risks, when a pandemic practically paralyzed the delivery system at once, and the number of accidents against this background began to grow sharply. By the beginning of the summer, Russian companies that insure international cargoes announced an increase in unprofitableness in the industry by almost 8%. By July, the number of insured events in domestic delivery insurance also increased (according to various estimates, by 7-12%).
This gave rise to talks about an imminent increase in prices for cargo insurance. And yet the companies managed to keep them practically until August. Now, as noted by many participants, the resource is almost exhausted.
Considering how sharply the segment of insurance of cargo transportation sank after the last sharp rise in prices (as a result of which the insurers had to reduce tariffs below the permissible limit, the market struggled with dumping for many years), such a situation could not have been allowed. But here everything worked out: first, the coronavirus brought down the sale of policies, then reinsurers (primarily in marine insurance) raised prices, and finally, scammers began to attack the sector.
In April-May alone, insurance companies identified more than 80 attempts to imitate cargo theft. To effectively deal with such situations, they are forced to expand and strengthen the staff of investigators. And these are new costs included in the price of the insurance policy.
Finally, there is a reason that does not apply to either policyholders or external players. Transfer to remote work. For such a “clumsy” industry as insurance in general and cargo transportation insurance in particular, this is an incredible leap forward. And he demanded serious investments.
To retain customers, many companies have literally made a small technical revolution. And now you can not only issue a cargo insurance policy online. It can be changed, renewed, and even claimed losses via the Internet (submit documents for consideration of applications, conduct contactless negotiations, etc.).
How to get the optimal cargo insurance rate
Despite new operating circumstances for the entire market (ranging from weather changes, which increased not only fire risks, but also the risks of delivery insurance, to the requirements for compliance with quarantine measures), the policyholder still has standard methods of managing the price of an insurance policy. The most effective ones:
- franchise (at the risk of theft of vehicles with cargo or only cargo delivered within Russia and beyond its borders);
- general policy (yes, the conditions under which the insurance of freight traffic under the general policy is carried out have become stricter, but it still works);
- tenders (they can also be held online, on the website of CA “GALAXY Insurance” such an opportunity has been implemented since the day of the service).
On our website, at all times, it was possible to choose the optimal price cargo insurance program with both individual and general risks. An online tender is held in a few minutes, and in the summary table of tariffs, you can select the minimum. At the same time, CA partners are proven companies that can guarantee payments.