Better Insurance Company: This sacramental issue is set by both newcomers-policyholders, and experienced owners of policies, having in the past a negative experience with one or more insurance companies. Often, this negative experience is associated with an unreasonable expectation of payment after an event that is not an insurance event in accordance with the purchased policy. In other cases, the client is right, but can not receive a payment promptly or in full. Consider the general principles of how to properly choose the insurer and how to determine: which insurance company is better?
Of course, there are a number of subjective grounds on the basis of which people make decisions:the affinity of the insurance company’s branch, the low cost of the policy, the strength of persuasion and the competence of the insurance agent – all this can make a difference when choosing an insurer in each individual case, but none of these factors should not be decisive.
First of all, the reliability of the insurance company is important, as well as its readiness to promptly fulfill its obligations.
Reliability means that even in the most unfavorable, crisis period, the insurer will be able to make all payments and will not go bankrupt. Prompt fulfillment of obligations is a time that is not burdensome for the insured, for which he will receive a payment in accordance with the terms of the policy.
Which Is a Better Insurance Company
In addition, it makes sense to spend a little time and conduct your own analysis, relying on public information posted on official websites of insurance companies, as well as on specialized independent resources – forums, portals of rating and information-analytical agencies, blogs and social networking groups. Obviously, it will not be superfluous to ask friends, colleagues, and relatives about their experience of cooperation with these or other insurance companies.
The complexity of choosing a suitable insurer is exacerbated by the number of companies present in the Russian insurance market, which today are more than a hundred. How to rank such a large number of insurers? Independently it is very difficult to do this, but there are independent information, economic and rating agencies, associations (associations, unions) of insurers, etc., publishing annual (sometimes – quarterly) ratings of insurance companies and their activities. Such information can be safely assigned the highest level of confidence.
Ratings of insurance companies
The largest Russian rating agency Expert RA helps to make a balanced decision when choosing an insurance company, giving the opportunity to analyze the activities of insurers, based on many indicators. The methodology for calculating the rating also includes a large number of factors, which are assigned a certain weight in the analysis – i.e. relative importance of the indicator compared to other factors. Here they are:
1. External factors of sustainability and corporate governance, such as:
Size factor (size and dynamics of assets and equity, the size of the authorized capital, the total insurance premium);
The position of the company in certain segments of the market (its location in associations and associations, the reputation of the company and its top managers, the brand, relations with supervisory bodies, specialization, captivity – dependence on the founders in determining the strategy);
Corporate governance (financial potential of owners and changing its composition, ownership structure and organizational structure, risk management and strategy, quality of management, information infrastructure condition, auditor, IFRS reporting, transparency of economic processes);
Geography of presence (efficiency of the company in the regions and development of the branch network).
2. Insurance business. This unit includes:
Insurance portfolio (diversification and stability of the insurance portfolio, profitability by types of insurance, the relative size of risks and parameters of the portfolio of incoming reinsurance);
The customer base (the size and structure of the client base, the presence of permanent and dependence on major customers, the percentage of canceled contracts, policy distribution channels, partners for incoming reinsurance, for captive companies – availability of a credit rating from the main client);
Reinsurance policy (reliability, diversification, and effectiveness of reinsurance protection, reinsurance of major risks, the ratio of the maximum net insurance benefit to own funds).
3. Financial indicators are evaluated on the following parameters:
Liquidity and solvency (current liquidity ratios and updated net liquidity, history of large payments, accounts receivable and its quality, availability of loans and credits, off-balance sheet commitments, solvency margin, the sufficiency of own funds);
Profitability and the loss-making ratio (return on assets under RAS and IFRS, own funds, net loss ratios, loss ratio under RAS and IFRS, the percentage of expenses for case management);
Investment policy (investment portfolio: liquidity, diversification by investment objects, stability and availability of optimization features, the reliability of investments, the percentage of subsidiaries and affiliated structures, return on invested capital, execution of orders No. 100n and No. 149n).
The short methodology of the “EXPERT RA” agency is given here to illustrate how difficult it is to objectively evaluate the characteristics of insurance companies, even with the use of mathematical and sociological methods of analysis.
Therefore, ratings based on “popular” voting, although they have the right to exist, are highly subjective, often biased, have a non-representative sample – that is, the number and quality of respondents do not match the conditions that sociology makes to quantitative and qualitative methods of analysis.
The reviews related to any insurance company should be approached with a great deal of skepticism, since every insurer has customers and opponents among clients, and it is not possible to measure the number of both ones independently. But we still give in this article a general tone of feedback regarding the leaders of the Russian insurance market.
Insurance group VTB Insurance, founded in 2000 at the moment is one of the largest insurance organizations in the Russian Federation and is among the systemically significant. The company’s branches are open in 114 cities of various regions of Russia.
The international rating agency Standard & Poor’s assigned the long-term credit rating and financial stability rating BB + (or ruAA + on the national scale) to the insurance group, which is the highest among insurance companies with domestic capital. According to the data of the domestic rating agency EXPERT RA for 2015, VTB Insurance is one of the most reliable insurance companies and has an A ++ rating (exceptionally high level of reliability).
The company provides customers with a full range of insurance products and services, including property insurance for individuals, life, and health, travel insurance, cumulative and investment life insurance, property insurance of legal entities, voluntary medical insurance (VMI), etc. To the shortcomings of the activity of the insurance, a group can be attributed to long periods of consideration of payment cases.
The general tone of the reviews about VTB Insurance is a conflict-free, reliable and worthy insurance company, but its services are not cheap. Nevertheless, a very significant number of insurers prefer it, especially among those who had a negative experience with other, more “cheap” insurers.
The largest and oldest insurance group in Russia, the leader in the number of branches in the regions. According to the “EXPERT RA”, the company is in the first place in terms of insurance premiums, reserves, and assets. In 2014, the National Rating Agency affirmed Rosgosstrakh’s reliability ratings at AAA and A ++. The company provides insurance for individuals and legal entities (OMS, CASCO, insurance for travelers abroad, etc.).
However, in several regions cases of violation of antimonopoly legislation by the company were repeatedly recorded, in particular, forcing customers to purchase additional insurance services, for a while, Rosgosstrakh even revoked the license for the implementation of compulsory motor third party liability insurance.
Reviews: a very long wait for payments, sometimes – blatant refusals in payment without a court decision, especially on auto insurance (but they are easy to sue and win), significantly understated amounts of damage after evaluation, low level of responsibility to customers, “bureaucratized.” As a plus, customers note that it is easy and quick to find the company’s office, in addition, there is a huge army of insurance agents.
The company was founded in 1991. Today it includes more than 760 branches and sales offices and 19,000 independent agents. He is one of the system-forming insurance companies in Russia. The client pool is 10 million legal entities and individuals. The company is licensed for more than 100 types of insurance services. Priority activities include auto insurance, voluntary medical insurance, property insurance for individuals and legal entities, mortgage insurance. Service of credit ratings of Standart & Poor’s assigned RES rating to ВВ (ruAA).
Reviews about the insurance company “RESO-Garantiya”, as in most cases, concerning other insurers, are negative. It’s easy to explain: a person will write more, being at the mercy of negative emotions, than positive ones. At the same time, apparently, there are branches and sales offices where “the letter of the Law” is read and competent specialists work, and there are those where the attitude towards clients is very unprofessional.
SOGAZ Insurance Group
The company also belongs to the number of systemically significant. In terms of insurance premiums, it ranks second in Russia. The group includes nine insurance and service companies in Russia and abroad. 14 million people. and 40 thousand legal entities are insured in SOGAZ.
In addition to insurance and reinsurance in the sphere of the company’s interests – sponsorship (in particular, SOGAZ – partner and insurer of the Continental Hockey League championship). However, the company, as well as in the case of Rosgosstrakh, received many complaints about the imposition of additional services by managers and the refusal to sell the OSAGO policy without life insurance.
In the reviews about SG “SOGAZ” about 45% falls on positive, and 55% – on negative. In pluses, citizens set the optimal price-quality ratio (for CASCO policies), the human factor is in the negative, as in most large UK companies: some branches serve at a high professional level, and service in others leaves much to be desired.
Established in 1992, AlfaStrakhovanie is one of the largest insurers with a universal package of services for individuals and corporate clients (the company provides more than a hundred different services, including property and life insurance). Has a very wide network of regional offices (about 400), thanks to which already more than 22 million individuals and 435 thousand companies have already used AlfaStrakhovanie’s offers. In 2015, the international agency Fitch Ratings confirmed the company’s financial reliability rating at the BB level (ruAA).
The general tone of feedback: three owners of policies of the five are categorically unhappy with the service or compensation for damage. In general, the claims relate mainly to an understated level of compensation for losses for various types of insurance, as well as “disguised” compensation conditions prescribed in policies. Of course, there are also grateful reviews, which even mention that the amount of the payment exceeded the amount spent on repairing the car.
Insurance group “Soglasie”
It was established in 1993 and currently is one of the top 10 largest insurance companies in Russia. The branch network of the organization consists of 126 offices in the territory of Moscow and the region, 75 branches, 135 remote workplaces and 132 separate regional offices, which allows the company to carry out insurance activities practically throughout the entire territory of the Russian Federation. In financial circles, the company was repeatedly criticized for too frequent a change of top managers and, as a result, a decline in reputation.
In the responses to the activity: there are complaints about the unskilled work of the call center, on slow payments, excessive reductions (5-6 times), damage compensation, difficulty in feedback; from positive moments – low prices for CASCO, unlimited period of handling documents after an accident (after a preliminary call).
It has been operating for more than 20 years and today offers its clients, both private and corporate, a wide range of insurance products and services. The regional network includes 600 branches and insurance points, 10 million people and 125 thousand enterprises are insured in this company, the authorized capital is 3.2 billion rubles. “VSK” also pays much attention to reinsurance protection of its insurance portfolio.
The general tone of feedback on VSK: the level of popular trust in the “VSK” is rather low: no more than a third of the population is satisfied with its service. Apparently, this is due to the fact that the company is more focused on working with legal entities.
LLC “Renaissance Insurance Group”
It was founded in 1998 and is a private insurance organization. It belongs to the category of systemically important insurance companies in the Russian Federation. In 2014, the “EXPERT RA” awarded the enterprise a reliability rating of A ++. 500 thousand people. and thousands of organizations are insured by this company. Among the partners of LLC, “Renaissance Insurance Group” are more than 700 hospitals and other Russian medical institutions, leading car dealers and travel companies.
In the reviews of the Renaissance Insurance Group, there are pluses – inexpensive policies and disadvantages – it is difficult to recover even insignificant losses, service at a low level.