At hazardous facilities, risks are becoming more expensive – Newspaper Kommersant No. 181 (7382) of 09/30/2022

The deputies propose to significantly increase the limits of insurance payments in the segment of liability insurance for owners of hazardous facilities. Insurers note that this measure will make the segment even less attractive against the backdrop of tariff cuts.

On Thursday, September 29, the State Duma Committee on Financial Markets recommended for consideration in the first reading amendments to the law on compulsory liability insurance of owners of hazardous facilities (OSOPO). Thus, the limit of payments to third parties injured in the accident and employees of the enterprise in the event of death or damage to health will be increased by one and a half times, to 3 million rubles. In addition, the amount of payments for burial increases from 25 thousand rubles. up to 40 thousand rubles Payments for property damage for legal entities are doubled, up to 1 million rubles. Only the limit of payments for damage to property of individuals (750 thousand rubles) remained unchanged. The head of the committee, Anatoly Aksakov, explained that the amounts of payments, the norms of which were established at least ten years ago, have already depreciated due to inflation.

At the same time, market participants and experts are cautious about the initiative to increase payout limits.

Aleksey Khutoryansky, director of the underwriting department for corporate types of insurance at Soglasie, notes that as a result of the increase in limits, the unprofitability of insurers may increase.

In addition, at the beginning of September, the Central Bank lowered the tariffs for OSOPO, which, according to experts, will lead to a drop in fees by 30–40% (see Fig. “Kommersant” dated September 2). Marina Zyuganova, managing director for property types of insurance at Renaissance Insurance, believes that if tariffs are left at the current level, then one can predict an increase in loss ratio by about 50%.

Market participants are confident that under such conditions the segment may become even less attractive.

Mr. Khutoryansky notes that small insurers should be expected to leave the market, since the increased unprofitability and costs of doing business, which are quite significant, especially in terms of automation, will make this type of insurance unprofitable for them. At the same time, according to the director for ratings of insurance companies of the NKR agency Yevgeny Sharapov, given the expansion of the tariff corridor in the segment and the low (within 10–20%) current level of the ratio of insurance payments to insurance premiums in OSOPO, the leaders of this direction have enough maneuver to to overhaul the company’s underwriting policy and keep this line of business profitable in terms of financial results.

Alla Borisova, Deputy Director of the ACRA Group of Financial Institutions Ratings, believes that for a number of risks, insurers will have to set tariffs based on the upper limits of the corridor, and, as an option, return to their further revision in order to maintain the stability of the OSOPO segment. The issue of tariffs will be considered in order to take into account the interests of all parties, Mr. Aksakov noted.

Yevgeniya Lazareva, head of the Narodny Front’s For the Rights of Borrowers project, believes that the market is being disingenuous when it says that the increase in tariffs will increase the attractiveness of OSOPO insurance. In her opinion, the market should not increase the attractiveness of financial products by changing tariffs, but by working with the consumer and convincing him of the necessity and benefits of purchasing these products.

Julia Poslavskaya