Mortgage rewarded insurers
[ad_1]
At the end of 2022, a number of insurers showed a significant increase in premiums in the mortgage insurance segment, despite a serious drop in the issuance of such loans. According to experts, the increase in fees was ensured by the prolongation of contracts and an increase in the average price of a policy. A more aggressive offer of insurance products was facilitated by the desire of banks to compensate for lost income from the sale of mortgages.
As shown by a survey of insurance market participants conducted by Kommersant, a number of companies showed significant growth in the mortgage insurance segment at the end of 2022. Thus, Ingosstrakh collected almost 8 billion rubles. premiums, 30% more than the result of the previous year, Sovcombank insurance increased the collection of premiums by 37%, to 0.94 billion rubles. Renaissance Insurance’s fees more than doubled, but the company does not disclose absolute volumes.
The performance of insurers turned out to be higher than the overall growth of the segment. According to independent expert Andrei Barkhota, at the end of 2022, it showed an increase of at least 25% and reached about 45 billion rubles.
Other surveyed companies lagged behind, showing a 14-25% increase in fees. In particular, the premiums of Zetta Insurance reached 0.9 billion rubles, Absolute Insurance – more than 1 billion rubles, Energogarant – almost 2 billion rubles. SOGAZ, AlfaStrakhovanie, Rosgosstrakh and Yugoria did not respond to Kommersant’s request.
Mortgage insurance – this is the protection of the insured against financial losses and a guarantee of repayment of the debt to the bank in unforeseen situations. It includes property insurance, which is mandatory, and life and health insurance, which is not mandatory, but is often offered by banks for registration.
The growth of mortgage insurance is taking place against the backdrop of a fall in the mortgage market itself. According to the Central Bank, the issuance of such loans in 2022 amounted to 4.8 trillion rubles, which is 16% less than in 2021.
According to experts, the fees of insurers in the segment increased mainly due to the renewal of policies. Yevgeny Sharapov, director of ratings of insurance companies of the NKR agency, explains that in the overwhelming majority of cases, the borrower does not immediately pay the entire amount of the insurance premium for a multi-year contract, but does it annually.
Andrey Zmiy, head of the corporate insurance department at the broker Soyuz Insurance, calls the increase in the average cost of the policy, which is caused by the rise in real estate prices, a factor in the growth of insurers’ fees. Thus, in Renaissance Insurance and MAKS the average price of a policy increased by 17-18%. At the same time, in Zetta Insurance and Energogarant the price increased by only 3-4%, while in VSK, Sovcombank Insurance and Absolut Insurance it remained unchanged.
Experts note other reasons for the growth of a number of companies. According to Aleksey Bredikhin, director of the group of ratings of financial institutions at ACRA, they could increase due to more active promotion of products and an aggressive underwriting policy. Renaissance Insurance noted that rapid growth was ensured through the development of a partner and agent network and the use of “new sales technologies.”
“The increase in fees could have been influenced by the desire of banks to compensate for the decline in loan issuance by an increase in the share of insured loans, for example, banks began to offer insurance products more actively,” explains Vladimir Shur, director of Kept’s practice for working with companies in the financial sector. The results of a particular insurer can be greatly affected by the establishment of partnerships even with one large bank, or, conversely, the termination of cooperation can play a negative role, says Alexei Yanin, managing director for ratings of insurance and investment companies at Expert RA.
By the end of 2023, experts expect mortgage insurance growth rates of up to 20%. The CEO of the insurance aggregator FAST.Ipoteka, Innokenty Lukyanov, explains that due to the extension of preferential programs, the volume of mortgage issuance may remain at the level of 2022, which means that the total mortgage portfolio will increase. At the same time, the expert adds, due to the unstable situation and macroeconomic factors, customers will not rush to early repay the mortgage, therefore, they will continue to pay for it and prolong mortgage insurance.
[ad_2]
Source link
