Last week, entered into force the new government rules on compulsory insurance of property purchased on credit. The main innovations of the Cabinet decisions - expanding the list of members of the mortgage policies of the risks and limit the maximum deductible - will force borrowers to fork out and bring to insurers and banks additional profits, writes Business Capital.
Related article: Loan payments: «... I refuse to pay the loan ...»Entry into force of the government decree № 358 marked the beginning of mass relicensing insurers. Before the advent of the new rules of mortgages insured items, with only a license for the voluntary property insurance. To work with a new kind of "obyazalovke" they will need other approvals.
"Insurers will need to obtain a new license the Financial Services Commission. Change of ownership documents would cost the UK in the 12 ths. This is not a serious sum for large companies, but this procedure takes time, "- said" DC "Chairman SK Brokbiznes Vadim Stroke. Until then, until the company will settle the bureaucratic procedures, bank customers will have to insure the mortgaged property to "volunteer" or wait until the insurers are not accredited will acquire the necessary documents.
So far, the list of risks involved in insurance coverage, consistent with the financial institution and includes a standard set: fire, transportation (down aircraft, collision of vehicles) risks, water damage, natural disasters, as well as the risks of illegal activities. Now this list is supplemented with a few more items: Real estate will be mandatory to insure against damage associated with the conduct of construction (reconstruction) sites located near the insured property, or adjacent premises not owned by the policyholder.
In addition, the paper expands the coverage by detailing the risks, now appearing in the policy. Its financiers have called inappropriate. "Given the large number of frozen construction projects, which are virtually unattended near the already placed in service in the insurance of such risks may be, and it makes sense. But this risk has never considered the standard.
He always offered separately, exclusively. First, the responsibility for such damage should bear the contractor, because it is his actions, whose consequences he had not foreseen the full extent of damage caused. Second, this risk somewhat beyond the classical definition of an insured event. Lost the element of chance, the loss is more predictable than unpredictable. Especially if we take into account the extremely low culture-building "- emphasizes the director of the Department of underwriting and methodology SC NASTA Igor Zaporozhets.
Another major change in the rules subject to mortgage insurance was the introduction of the maximum size of the franchise, which now can not exceed 2%. Until now, the standard deductible, according to the requirements of financial institutions ranged from 0.5 to 2% (sometimes non-standard policies with 10-15%-governmental franchises).
"The desire to limit the size of the franchise, most likely was caused by the need to avoid making this type of insurance from the actual to the formal. Because if the client should simply conclude a formal treaty, to reduce the costs of insurance may apply higher deductibles, "- explained" DS "head of underwriting and methodology of IC" Generali Garant "Inessa Zdanevich.
However, some experts believe that the introduction of such a rigid framework would undermine the interests of clients, forcing them to buy insurance at the maximum value. "If the borrower is at a stage when most of the loan repaid, the bank may allow him to increase the deductible and pledged only to protect from catastrophic loss. Liquid capacity of the remaining assets (or insurance money), even with the increased franchise will protect the interests of the priority beneficiary - of the bank. And if the borrower is willing to bear such a risk for the sake of reducing the cost of insurance - that's his business and its risks ", - says Igor Zaporozhets.
Along the way, the document expanded the duties of insurers. In particular, after the insured event, companies must be mandatory to carry out its own expense assessment, determine the cause and size of the loss. Financiers will also serve as an informant, notifying banks within five days of any changes or violations of the insurer to the contract.
Approval of new conditions of insurance companies has given a reason to talk about revising its pricing policy. Now mortgage rates on insurance for individuals ranging in 0,2-0,3% of the sum insured, for legal entities - 0,05-0,2%. "Rates are likely to rise slightly (by about 5-10%). To this affect the expansion of the list of risks and establishing a ceiling for the franchise "- says Vadim Stroke. But it is unlikely the company will be able to force prices up more. Because their tariff policy is often limited to banks that are not interested in an excessive rise in price of related services to customers.
Nevertheless, experts predict that mortgage insurance should now become a very profitable business. "Despite the expanded list of risks, the probability of insured events in some of them are minimal. That is more expensive fare will simply lead to increased revenues of insurers ", - predicts the Chief Underwriting Centre Insurance Group" TAS "Svetlana Shkarban.
The emergence of lucrative new form can cause redistribution of the market. "Companies that have received a new license first attempt at an early stage win over the banks and their mortgage borrowers," - said the head of the commission on insurance of the Ukrainian Society of Financial Analysts Vyacheslav Chernyakhovsky. By the way, bankers also will not go vnaklade: the rising cost of insurance policies will automatically lead to an increase in the amount of commission that lenders put in his pocket. With mortgage insurance commissions, charges can reach 30-40%.