The market will not be the same: new problems in corporate insurance – protechsage

The market will not be the same: new problems in corporate insurance

The insurance market for individual entrepreneurs and legal entities has never changed as quickly as this year. New programs with clarified risks associated with coronavirus, price fluctuations, online services for servicing policyholders – all of this replaced each other literally weekly. On the threshold of autumn, the situation has calmed down in almost all segments – from corporate liability insurance to CARGO for international transportation.

Challenges of new times for corporate policyholders

But not for policyholders. Today they faced several problems at once that need to be addressed:

  • the dynamics of fraud (both from some insurers trying to stay afloat and from policyholders who are trying to improve the situation with the help of false insurance payments);
  • rising cost of standard risks;
  • failure by insurers to fulfill their obligations.

These challenges did not appear yesterday. But during the first outbreak of the pandemic and against the background of the volatility of the ruble, they took on a threatening shape. So threatening that some users of corporate insurance programs have chosen to voluntarily give up much-needed financial protection during a difficult period than solve problems.

How to act for those who want to maintain stability, reinforced by insurance, but do not want to become a victim of scammers or overpay? Experts recommend adhering to the rules of secure collaboration.

Insurance fraud

Areas where this problem is gaining momentum faster than anywhere else:

  • freight insurance;
  • commercial real estate insurance ;
  • insurance of commercial vehicles.

The problem has two sides. First, more and more policyholders are trying to cheat. For decent users of insurance services, this means stricter checks at the conclusion of contracts and an increased price (the regime “for myself and that guy” was activated).

Secondly, frankly weak (or not the most honest) insurers, of which dozens remained even after the cleaning of the Central Bank, also use all kinds of schemes. That is, the policyholder can issue an insurance policy with a deliberate guarantee of refusal to pay or banal ignoring of his claims for compensation.

There is only one way to deal with such a problem – by choosing a reliable company with which a corporate insurance contract will be concluded. Only such organizations are represented in the list of partners of CA “GALAXY Insurance” . Monitoring of their reliability, financial stability, solvency and legality of work is carried out regularly. To win over such a partner, he needs to provide up-to-date information about the insured – his work experience in general and cooperation with insurers in particular.

Rise in prices

First of all, fraudulent, weather, medical and technological risks are becoming more expensive. At the same time, for permanent policyholders, the price of business insurance remains at the same level. That is, to maintain the tariff, it is often enough to gain some experience, after which the insurer, despite the negative experience in terms of some risks (unprofitable product), will “keep” the client at acceptable rates.

Another way to deal with rising prices is to study the tools through which the cost of business insurance can be influenced, namely:

  • franchises;
  • insurance checks;
  • individualization of programs;
  • technical re-equipment of insurance objects in order to reduce the likelihood of negative events;
  • selection of the program of the insurance organization and the selection of the rate in the summary table from several recommended insurers on the website of CA “GALAXY Insurance”.

Non-performance of the insurer

US law bureaus are now selling tens of millions of dollars in debt from insurance companies. In Ukraine, more than 70 insurance companies simply disappeared from the market, failing to fulfill their obligations to customers. In Europe, the number of litigations related to the inability of insurers to pay under an insurance contract for legal entities increased 10 times over six months.

Russia also took part in this “parade” of failures. The market is losing predictability, some of its participants simply cannot adapt to new realities, while others are already mastering payments online (what can we say about checks or concluding contracts).

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