Vitamins policy: a third of insurers sell ineffective products
One third of the insurance market participants sell policies with low customer value, the National Rating Agency (NRA) told Izvestia. The inefficiency of their products is confirmed by the extremely modest payout level in relation to fees: for 40 players, it is less than 10%. The market average is 50%. Moreover, 16 companies have not made a single payment. Sometimes such results are explained by the nature of the company's work — it may specialize in one or two types of protection or have a small number of contracts, the All-Russian Union of Insurers explained. For which policies payments are lowest, see the Izvestia article.
Why do some insurers not make payments?
One third of all insurance market participants had extremely low payout rates for their products. This follows from the NRA data reviewed by Izvestia. They compared the amount of payments from each of the players to the fees for the first quarter of 2025 for all policies, with the exception of voluntary life insurance (there is a more complex contribution system). 40 market participants (27 insurers and 13 mutual insurance companies) out of 131 had this indicator below 10%.
In total, these companies collected 22.8 billion rubles in three months, and paid only 0.6 billion rubles. Moreover, 16 players have not made a single payout during this period. They collected 37.4 million rubles. This indicator indicates the low customer value of their products, the NRA told Izvestia.
Such a low share of payments really indicates that market participants are selling products that are ineffective for the client, the People's Front agreed.
Overall, the market situation is much better. The average level of payments in relation to fees for all companies was 50% (and, taking into account voluntary life insurance, 71%). Moreover, it has increased compared to previous years: in 2024, the figure was 42%, and in 2023, it was only 34%. This dynamic indicates an increase in the customer value of insurance products on the market, according to the NRA.
The big difference between fees and payments may be explained by the immaturity of the portfolio when the company first started operating in a particular segment, the All-Russian Union of Insurers (VSS) reported. In addition, mutual insurance companies have a low rate, which is due to their business model, and companies with a small number of contracts, they added. Sometimes such organizations specialize in only one or two types of insurance.
The Mutual Insurance Society is a non—profit organization that insures the property interests of its members on a reciprocal basis. For example, in tourism, OVS are being introduced as a tool to ensure the financial responsibility of tour operators. Unlike commercial insurers, OVS is owned and operated by its members.
To accurately assess the effectiveness, it is necessary to extend the period for data analysis, according to the BCC. Large losses every few years can offset the positive financial results of previous periods.
The situation also varies by type of insurance. More than half of the money collected was paid for hard hat, CTP and VMI. Voluntary insurance of citizens' property (12%) and accident and illness insurance (21%) became outsiders, the NRA calculated.
There is clearly a well—established trend - the lowest rate of payments for imputed insurance. In fact, such policies are a voluntary type of insurance, but the purchase of this protection is necessary in order, for example, to engage in certain activities. So, the same notaries and tour operators should insure their liability. In some cases, imputed insurance is also aimed at protecting the life and health of certain groups of the population (only 16 types are for government employees). Unlike imputed insurance, mandatory types of insurance are clearly regulated by law, and market participants are required to sell the policy when a client applies (for example, CTP).
The customer value in imputed products is suffering, the NRA emphasized. The fact is that the buyer himself often chooses an insurer based on the price of the policy, and companies in pursuit of customers reduce the cost, but do not improve the product itself. For example, borrowers usually apply for a policy solely at the request of the bank when they take out a mortgage on a property at the excavation stage. However, if you choose the cheapest protection, it often has no value at all. In general, the leader in the share of payment refusals is credit life insurance (36%).
The ratio of payments and fees does not always serve as a criterion for the attractiveness of an insurance product for consumers, the press service of the Central Bank clarified. For example, after the regulator eliminated the practice of imposing insurance against non-departure or flight delay, this product continued to be in demand anyway. Customers willingly and quite consciously bought such insurance even when flight delays or cancellations did not occur often.
Currently, the Central Bank's area of special attention includes insurance products sold in conjunction with other financial products (for example, loans). For a number of them, the Bank of Russia records cases of lower payments. This issue is in the focus of special attention of the regulator, which assumes, among other things, the possibility of developing additional measures and recommendations to increase the customer value of such insurance.
Which insurance policies are ineffective
An example of truly fictitious work in this market was the activities of Respect Insurance Company, which insured the liability of developers, but almost did not pay compensation, despite large fees, said economist Andrei Barkhota. The level of payments relative to premiums was at a minimum, and the capital was significantly lower in scale than the risks assumed. As a result, the Central Bank revoked the company's license, as well as other insurers with similar practices.
Due to the low customer value, it is especially worth noting insurance against fraud, which does not actually protect the client, said Alexandra Pozharskaya, an expert of the Popular Front project For Borrowers' Rights.
Such products work only if the client himself did not transfer data to intruders, did not enter codes and did not follow links — that is, if the fault is completely on the bank, she explained. At the same time, from 2024, according to 161-FZ, banks are required to return money even in the case of social engineering. Despite this, "fraud insurance" continues to be sold, misleading consumers about their real benefits.
"In situations where it is difficult to get a loan or use other financial products without paying for insurance, the principle of balancing interests is also virtually ignored,— Alexandra Pozharskaya clarified.
Most of the "voluntary" insurance sold through banks is actually acquired unknowingly and under pressure (except for mortgages and hard hats), the expert said. Therefore, there is a cooling-off period during which the customer can reject the product. However, the imposed sales have not disappeared: banks do not want to lose commissions, and insurers do not want to lose revenue. In response, the Central Bank began to develop rules governing communication with the customer in order to encourage honest sales.
In particular, due to the active activity of the regulator, the practice of imposing insurance is gradually becoming a thing of the past, the BCC reported. In the last year, there has been a change in the scheme in credit insurance, when such products are replaced by banking products, which, in fact, perform the same function.
Unfair practices do exist, added Igor Rastorguev, a leading analyst at AMarkets. Often, when applying for a loan or card, insurance is imposed on customers that they did not plan to use. The problem here is not in the insurance product as such, but in the ways of its registration — and this is already a matter of regulation, transparency and responsibility of the seller.
At the same time, the effectiveness of insurance is measured not only by the number of payments — it primarily serves as protection against risks, Igor Rastorguev said. Her goal is not so much to return the money, but rather to create a sense of confidence and support in the event of an insured event. For example, voluntary insurance packages for mortgages, trips, or loans are important not because of the payments, but because of the protection itself.
Insurance assumes the random nature of the event, said economist Andrei Barkhota. In the case of life insurance, payments rarely exceed contributions, but the reason is the low probability of events. At the same time, insurance against mobile phone flooding looks like an imposed practice.
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