Mortgage insurance under the threat
roughly growing market of insurance of mortgage risks is included into the difficult period
Despite optimistical forecasts of some analysts the world financial crisis which has burst in 2007 nevertheless has aloud enough struck on the Russian market of mortgage lending: during the current year its growth was slowed down. Thus also growth of volumes of accompanying services, in particular mortgage insurance was slowed down. However even despite the mediated negative influence of world financial crisis, by estimations of analysts “ Expert RA “ in 2008 the market of mortgage insurance can grow twice: to 13,4 mlrd rbl. By data “ Expert RA “ its volume following the results of 2007 has reached 6,7 mlrd rbl. that on 117,9 % more than for the similar period of previous year.
World financial crisis can delay introduction in Russia new mortgage insurance products, such as insurance of a default of the borrower and insurance of an initial payment under the credit which participants of the market concern carefully. Probably also that in the conditions of instability in the external financial markets a number of the credit organisations will try to refuse some kinds of insurance services at mortgage lending in favour of increase of the size of an initial payment, the guarantee or additional pledge.
now mortgage insurance is one of the least unprofitable kinds of insurance. Srednerynochnye tariffs under the contract of mortgage insurance (on all risks as a whole) make from 0,8 to 1,5 % from the insurance sum. However eventually under the influence of an increasing competition and under the pressure of the banks, aspiring to lower cost of accompanying services for “ painless “ Increases of interest rates against cost increase fondirovanija, the insurance companies will be compelled to lower tariffs. Access on the market of mortgage insurance for insurers is possible two ways: by means of accreditation at the bank which is giving out mortgage loans, or by means of accreditation at Agency on mortgage housing crediting (AIZHK). Unlike credit institutions, AIZHK by the present moment has developed transparent enough and clear for participants of the market of a condition of accreditation of insurers. Nevertheless the Federal antimonopoly service (FAS) has found signs of infringement of the law “ About competition protection “ regarding an interdiction for an establishment of tariffs here again.
last years FAS actively cleans the market bankostrahovanija from so-called “ exclusive agreements “ also has already reached certain results. So, in August it became known that FAS Europe of Bank and the Absolute of Bank and 36 insurers has brought actions in the relation the Credit, and in the beginning of September it became known that has been brought actions in relation AIZHK and 45 insurers. However accreditation in itself has a number of advantages to all interested parties: frequently she allows bank to select from the market of the most reliable partners - the insurance companies which will incur a part of risks of bank and the borrower, having allowed to lower credit cost thus.
the unfair competition is really necessary for eradicating, but unfairly rigid actions FAS can lead to an uncontrollable exit on the market of mortgage insurance of unreliable insurers therefore on borrowers the raised risks will lay down, and banks will be compelled to raise rates under credits or in general to refuse insurance in favour of the guarantee and additional pledge. The matter is that only licence presence at all is not a sign of reliability of the insurance company, for its estimation there are other tools, in particular reliability ratings. For normal functioning of the financial market in the conditions of market economy vital the accreditation institute, allowing to spend “ natural selection “ players and evolution best practice. The best for the market the decision would be to allow to establish to banks for insurers those conditions as which they consider important and necessary, but thus these requirements should be absolutely transparent and achievable for any company, and, besides, to requirements of each bank there should correspond some the insurance companies.
in the beginning of September FAS named the preliminary list of criteria of accreditation of insurers at banks, namely: Performance by the insurer of requirements of the legislation, rating presence not below certain level, equation of structure of an insurance portfolio, a share of payments from volume of receipts not less than 30 and no more 50 %, conformity to base requirements of financial stability, nonparticipation in litigations which can influence business.
this list, probably, is not ideal, but it testifies that FAS moves in a right direction. the COMPANIES - LEADERS of MORTGAGE INSURANCE
(INCLUDING INSURANCE of PLEDGE, the TITLE And LIFE of the BORROWER), 2007
|the Place||the Insurance company/ the Group of companies||Insurance payments, thousand rbl.||Insurance payments, thousand rbl.||Quantity of the concluded contracts, piece||Level of payments, %||the Size of payments on one contract of insurance, thousand rbl.||Rates of a gain for 2007, %|
|1||VSK||1 140 000||116 000||79 200||10,2||14,4||85,7|
|2||Rosgosstrakh||828 000||n. d.||n. d.||-||-||-|
|3||Ingosstrah||583 644||33 853||16 011||5,8||36,5||40,6|
|4||Alpha insurance||537 665||n. d.||n. d.||-||-||5907,4|
|5||SOGAZ||528 872||886||10 450||0,2||50,6||418,0|
|6||the Consent||381 616||23 113||26 160||6,1||14,6||-|
|7||Jugorija||373 076||15 388||32 069||4,1||11,6||-|
|8||ROSNO||257 445||9 019||20 515||3,5||12,5||140,0|
|9||the Renaissance Insurance||256 490||1 094||8 959||0,4||28,6||83,7|
|10||Uralsib||256 000||32 064||20 688||12,5||12,4||-|
|11||Spassky gate||203 229||16 166||40 716||8,0||5||-|
|12||the Standard - the Reserve||184 760||95 712||6 096||51,8||30,3||-|
|13||Russian world||139 712||n. d.||n. d.||-||-||210,5|
|14||Kapital Insurance||111 621||411||12 556||0,4||8,9||-|
|15||RESO - the Guarantee||110 000||8 083||7 514||7,3||14,6||-|
|16||MAX||91 876||3 258||8 302||3,5||11,1||-|
|17||MOSCOW TIME||71 797||11 832||8 575||16,5||8,4||2,6|
|18||45 384||107||3 862||0,2||11,8||500,2|
|19||Oranta||19 671||5 276||649||26,8||30,3||-|
the Source: “ Expert RA “