The corporate insurance market in Russia grew during the pandemic, contrary to pessimistic expectations. This became possible not only because many policyholders (who, according to forecasts, had to save on insurance support) realized the need for financial “straw”. Another factor that contributed to the development of the industry was the reaction of insurers.
Instead of lowering the tariffs for the classic insurance of corporate property or company liability, they launched fundamentally new programs. And these programs were successful. Insurance of non-payment of accounts receivable, treatment of employees with coronavirus, suspension of work at the request of controllers – all this was in demand.
At the same time, the classic types of corporate insurance have also grown:
- from fire risks;
- in case of liability to the lessor;
- from the breakdown of expensive equipment;
- from the risks of bad weather, etc.
In each direction, the growth was about 3-5% according to various estimates of insurance organizations. Experts consider this dynamic to be effective, but definitely insufficient. In the sense that the rate of growth in the likelihood of incidents does not coincide with the rate of growth of business insurance against the risks listed in the list, and not only.
Many threats remain relevant for companies and are not “covered” by insurance support. While the economic crisis is far from over, small firms continue to melt, closing one after the other.
Of course, the set of threats for each enterprise or entrepreneur is very different. Someone works outside the city and uses heavy equipment, which means that they are “under the gun” of bad weather. Someone operates within the capital, remaining, due to the reduced staff of guards and employees, an attractive target for robbers and fraudsters.
Three underestimated risks to business
Nevertheless, experts believe that there is a pool of risks against which it is useful to insure a business for everyone. There are only three of them:
- liability for damage to third parties.
Fire insurance at all levels has been talked about for years. The Zimnyaya Vishnya shopping center, Sindika, numerous office centers, dealership car sites – all these are objects that were significantly damaged in 2017-2020. In 2019 alone, compared to 2018, the number of fires at enterprises increased by 1.8 times. The damage caused by them was estimated at 12.5 million rubles.
At the same time, fire insurance was used in the same 2019, only 8.2% more policyholders than in 2018. The number of incidents increased by 80%, and the number of insured objects – by 8%: it is not surprising that this risk is considered underestimated.
Break in production
The pandemic has demonstrated that this part of a comprehensive corporate insurance contract matters. Only in it you need to prescribe the risk of stopping precisely due to the cause of the quarantine, pandemic, etc.
At the beginning of 2020, no one had such insurance (not only in Russia). Now that the world has learned what unforeseen circumstances mean, it should become one of the key ones at least for the coming years. At least for companies that are completely dependent on offline work.
As of 2019, business interruption insurance was minimally popular (enterprises in 30% of regions did not use it at all). Today, the demand for it from businesses of all sizes is growing.
Experts hope that this trend will continue and the risk will disappear from the list of undervalued. According to rough estimates, at the moment more than 20 thousand Russian enterprises objectively need such a policy. Less than 1000 companies use it.
Liability to third parties
On claims from citizens for damage caused during repairs, construction, site design and technological processes, the company in 2018–2019. paid over 3.2 million rubles. At the same time, the share of already considered claims did not even come close to 70%.
That is, this amount can increase significantly. But in 2020 (despite three months of self-isolation), such claims and complaints were also submitted to the courts, the police, and other instances.
Companies continue to pay for the flaws of their employees, insufficiently reliable fences and incidents beyond their control (like a part of a roof torn off by a strong wind). Although these risks can and should be placed on damage liability insurance .
90% of companies in the West do this. And only 22% of organizations in Russia. Moreover, it is with Russian insurers that the cost of such an insurance product remains significantly lower.
It is easy to make sure of this by holding a mini-tender among the largest insurance companies on the website of CA “GALAXY Insurance” online. Based on the results of such a competition, the policyholder sees a summary table of prices.
Among them, it is easy to choose the best rate and immediately apply for cooperation. Also remotely. And not only for corporate liability insurance.