The plenary session "Regulation, strategy, tactics" was moderated by Pavel SAMIEV, General Director of the Analytical Center BusinessDrom, and Alina ROZENTSVET, General Director of National Rating Agency. The session was opened by Anatoly AKSAKOV, Head of the State Duma Committee on the Financial Market, who spoke about the adopted and expected amendments to the legislation. The bill, which will be adopted in the near future, is about lifting restrictions on remote settlement in MTPL. In addition, the law on mutual insurance societies has already been adopted in the first reading: restrictions on the creation of such societies are being lifted, thanks to which competition in the insurance market will develop.
Igor YURGENS, President of ARIA, RAMI, spoke about the results of the first half of the year in the insurance market. Factors that influenced GWP growth: recovery of economic activity, volume of lending to individuals. All key market segments showed positive dynamics compared to 2019. According to ARIA forecasts, the total GWP by the end of 2021 will amount to RUB 1.8 trillion, which is 17% more y-o-y (RUB 1.54 trillion).
Ekaterina ABASHEEVA, Deputy Director of the Insurance Market Department of the Bank of Russia, continued the topic of regulation. She commented on the questions that the Bank of Russia received from market participants and insurers regarding the minimum requirements for insurance products sold in connection with loan obligations.
Anna KAREVA, Deputy Head of the Consumer Rights Protection and Financial Services Accessibility Service, Bank of Russia, spoke about the statistics of consumer complaints about insurance products. According to the results of 9M2021, 76% of complaints are related to MTPL. The main problem is the difficulty of concluding an insurance contract in the office, on the website, complaints related to early termination. The number of complaints on MTPL settlement decreased, and Anna noted reduction of settlement timing, introduction of informing customers about claim status, changes in business processes, changes in relations with partners, as well as robotization of processes and development of mobile applications as key drivers. An urgent problem that needs to be addressed is the problem of concluding MTPL contracts.
Then Andrey KASHEVAROV, Deputy Head of the Federal Antimonopoly Service, spoke about the sale of insurance products through credit institutions. In 2022, it is expected that banks will be able to establish requirements for the credit ratings of insurance companies to insure risks of borrowers.
Ivan CHEBESKOV, Director of the Financial Policy Department of the Ministry of Finance of the Russian Federation, spoke about the strategy for the entire financial market development. Capital markets will gradually replace bank lending, and the institution of investment advisers and collective trust management will develop. Competition in the securities market will increase, and Russian management companies will compete with foreign ones. In 2021, a law was adopted on the access of branches of foreign insurers to the Russian market, which is quite restrictive in terms of branch access. But we see that foreign insurers want to enter the Russian market; they see a high margin of the insurance market. The big challenge for the market is the regulation and functioning of ecosystems.
The Forum continued with a panel discussion, at the beginning of which Pavel SAMIEV briefly showed several key insurance figures: the share of online sales in the second quarter continued to grow at a slow pace and reached 7.6%, concentration in the insurance market is slowly growing: the 5 largest insurance companies account for 51% of all GWP. The insurance market has become more technological, new digital platforms are emerging. However, all traditional sales channels will maintain a dominant share, as is the case in more developed markets such as China, where online sales are only at 10%. "Along with this, online settlement is developing, in our company at the end of 2021 it will be possible to get Motor Hull online settlement in 15 minutes", as Sergei TSIKALYUK, Chairman of the Board of Directors of VSK Insurance House, noted in his speech.
"The future of the insurance market is the combination of insurance products with services. Launch of new products and services with a growing digital component, improvement of the company's IT architecture, introduction of electronic document management at all stages of interaction with the client, including settlement after insured events, are part of Rosgosstrakh's strategy", noted in his speech Gennady GALPERIN, General Director of Rosgosstrakh.
Alexey RUDENKO, General Director of Rosgosstrakh Life, commented on innovations and requirements for investment life insurance contracts. He noted that more often, along with the main service, clients are provided with additional services, such as legal, financial, personal client manager, numerous medical services, both consultations and treatment. Therefore, the obligation of 100% payment limits the ability of insurers to provide a wide range of related services.
Vladimir CHERNIKOV, General Director of Ingosstrakh Life, spoke about the evolutionary path of development of accumulative life insurance and the new product. Service functions have already become an integral part of accumulative life insurance, the next stage is to provide clients with risk protection and a fixed income, along with deposits and bonds. Accumulative life insurance is the foundation for creating combined products not only for life, but also for health and property. This product can be an excellent platform for ultra-long-term savings with 100% protection of funds.
The topic of life insurance was continued by Evgeny GUREVICH, General Director of Kapital Life Insurance, who noted that 50% of payments are risky payments, which emphasizes importance and necessity of risky insurance products. Evgeniy noted that he sees development of life insurance in classical types of insurance, in services, in additional options, as well as insurers as full-fledged participants in the pension system.
To the question "Could an insurance company be interested in clients constantly using the mobile application?" answered Igor FATYANOV, General Director of Zetta Insurance: "For an insurer's client, the use of a mobile application is not a target function. If an insured event happens, the client does not want to declare his/her loss online, but to hand over a damaged car to a service center and receive a high-quality prompt repair. In health insurance, a mobile application is more relevant than in other insurance products, including due to the development of telemedicine".
"There is nothing better than mutual insurance in terms of customer confidence and entry into the insurance product", as Igor ZHUK, Member of the Supervisory Board of the RNRC, began his speech. The insurance market would grow faster if clients had more confidence in it. Mutual insurance, when every client is a policyholder and insurer is used all over the world in environmental insurance, in industrial insurance. In Russia, this market is not developing for three reasons: lack of knowledge, lack of confidence in insurance, and presence of destructive restrictions.
The panel discussion ended with a speech of Ella PLATONOVA, Vice-President of ARIA, who spoke about the key indicators of the insurance market. A significant market share (22%) is credit insurance for individuals. At the same time, growth of credit insurance exceeds the dynamics of the loan portfolio and the volume of loans issued to individuals. Among the sales channels, banks and the Internet showed the maximum increase in premiums (+32% and +54%, respectively).
The key topic of the second session "Digitalization and new distribution channels" was service solutions that simplify processes of insurers, moderated by Arseniy POYARKOV, President of the Analytical Center BusinessDrom. The session began with a presentation by Olga ZLOTYA, Managing Director of LCI Partner, about sustainable insurance and the importance of the ESG approach. Olga gave examples of the use of the ESG agenda by the insurance industry and noted the benefits of ESG implementation, among them: reduced tax burden on carbon emissions, increased confidence in government agencies, Western partners and investors, revenue growth due to increased consumer loyalty, reduced costs, operating costs, optimization of investments and assets.
Ivan PRONIN, Chief Operating Officer of Astro-Volga, spoke about the new settlement algorithm. The first step is to contact the call center to register a request, the second step is to upload documents using a chat bot, the third step is to exchange originals and send for repairs. As a result of this algorithm, the number of contacts with clients was reduced to 1, and the share of settled insurance events within 7 days increased to 75%.
The topic of motor insurance was continued by Anton DOVBNYA, Director of SpectrumData, who spoke about the MTPL insurance "conveyor". This new product automates risk assessment, insurance decision making and insurance pricing processes. At the same time, scoring models can be applied both for MTPL and Motor Hull.
Alexey VLASOV, Member of the Management Board, Deputy General Director of Ingosstrakh for Retail Business, continued the topic of claim settlement and the fight against fraud. Alexey spoke about the project to improve accuracy of fraud risk assessment using a hybrid approach. The new approach helps to reduce the portfolio loss ratio, improve the scoring model, and reduce the number of "false" positives. The economic effect is reduction in payments for fraudulent losses.
Vladimir TIKHOMIROV, an analyst at RDTECH, spoke about another decision in insurance, the topic of his speech was automation of reporting in accordance with the new requirements of the regulator - IFRS17. For this there is a flexible Oracle solution that is easily scalable - Analyzer is a ready-made end-to-end automation process, easily customizable by business users, in addition, all necessary reports are already built into it. With the help of the program, it is possible to calculate insurance liability, manage data.
Andrey KRUPNOV, Director of Industry Solutions for Insurance Companies at CROC, shared a solution for data management. Over the past 2 years, 90% of all the data available in the world has been produced, mainly due to IoT devices. The fragmentation of sources of customer information makes it impossible to build a single customer profile, which is why importance of combining all data into a single database increases. Another important trend is the development of cyber insurance. Any services can contain cyber vulnerabilities, it is important now to implement solutions to control these risks in the companies.
Maria VOZHEGOVA, Chief Technology Officer in the financial sector at EY, spoke about innovators and "newcomers" in digital transformation. In her report, Maria shared an action plan for the IT director of an insurance company, among the steps: to get a report on the status of digital transformation initiatives, to revise the structure of KPIs for digitalization, then to assess the volume, business rationale and economic value of the investment portfolio in the field of technology for the year.
Elena UDAROVA, Deputy General Director for Client Network Development at AP Companies Global Solutions, spoke about medical services provided to insurance companies. The company sets itself the tasks of digital transformation, among them: transfer of existing processes to electronic form, optimization of business processes, reduction of transaction costs. The company has its own mobile application with a wide range of services available, including viewing available services, clinics, telemedicine, and remote monitoring.
Nikolay SIDOROV, General Director of Mafin, shared a forecast of the insurance market and his vision of the future of marketplaces and aggregators. It is expected that capacity of aggregators by 2025 will grow 1.5 times, and the capacity of Motor Hull hull insurance will grow even more significantly - 4 times.
The session ended with a speech of Elena GAVRIKOVA, Deputy General Director of PRAVOCARD, who spoke about including services in insurance products. Experts estimate the share of additional services at 10-30% of insurers' revenue. Among the advantages of partnership of insurance companies with services is an increase in the number of positive contacts with customers during the contract term, ability to make an offer personalized. The company provides legal assistance, car assistance, various types of social assistance.
They continued to talk about products in the third session "Innovations for insurers: new adaptive products and services". The session was attended by: Andrey ZAITSEV, Executive Director of EUROINS, who spoke on the evolution of an insurance product in various sales channels; Viktor DUBROVIN, ARIA Vice President, who spoke about the results of the ARIA survey on what products may be in demand by customers in life insurance and shared insurance products that have not yet been sold in Russia but are in demand abroad. "In 2022, all stages of MTPL settlement will become possible online, RAMI is preparing technical changes that will completely transfer settlement of insurance claims to a remote mode," said RAMI Executive Director Yevgeny UFIMTSEV. The session was closed by Maxim SHAPORIN, General Director of VetExpert, who spoke about innovations in pet insurance, as well as about creation of an ecosystem for animals.