In Ukraine the new stage of struggle for available funds of population is about to start. By different estimations, people keep their cash “in stockings” from $10 to 20 bln. So commercial banks and insurance companies are ready to get into an argument for such titbit. Recently they have presented, according to their opinion, an irreplaceable and competitive product – life insurance. But the officials who are responsible for this sector of business, assert, that insurers’ customers can lose their money put up in policies.
During the USSR period people were insured a lot and willingly. Insuring their life with a help of Gosstrakh people aimed to kill two birds with one stone: for some years to save money, and at the same time to secure themselves against emergency. But in the beginning of 90 unreimbursed policies had the same fate as deposits in Sberbank. According to official figures the State debt on Soviet insurance was 8 bln UAH. (10 mln UAH, or 0,12 % were given as a compensation to relatives of died investors in 2004). According to acknowledgement of the President of Insurance Companies League Alexander Filonuk, as a result today insurers should break the wall of people’s mistrust.
However, insurers are tuned to be optimistic. And how, all they have received annual tax odd before their main competitors – private Pension funds. Today only insurance companies and their customers have unprecedented tax benefits from the state. Firstly, the employer is interested to give money for insuring his employees, because these sums (up to 15 % of salary schedule) are allowed to calculate as gross expenditure, that is, they are tax free.
Insurers promise, that they invest money put up by citizens in profitable spheres of business, as a result custormers will get a quite good income. But…the state is not responsible for risk of such investment and if there is losses instead of incomes, citizens will earn nothing.
However, insurers are worried about other issues now: deficiency of distributors’ networks and lack of insurance agents. Perhaps, the biggist problem for insurance business is low incomes of people. If there’s not enough money to make both ends meet for a normal standards of life, so what thoughts about insuring such life can come to a head. As experience of other countries shows, the insurance boom starts when average incomes reach $300-400.
As explained by the Head of Insurance Authority Department of State Financial Services, Vladimir Parnuk within condition of incompleted legal framework “life” business in Ukraine can result in considerable losses for the customers. For example, the contract can be drawn up in such way that the first 3-4 years a person makes payments in favour of the insurer. And if he suddenly changes his mind and demands to get back his money, he will be given a simple answer, that there isn’t no money.
French insurance giant AXA Group which is the owner of two large risky companies “AXA Insurance” and “AXA Ukraine” are intended to enter the Ukrainian market of life insurance. Ouestioned experts of the market consider that AXA Group was forced to enter “life” market of Ukraine in 2010 not only because of perspective of such business, but also plans of Ukrainian competitors about risky insurance. Insurer AXA Group in Ukraine is presented by two large insurance companies – “AXA Insurance” (former company name “Vesco”) and “AXA Ukraine” (“Ukrainian Insurance Alliance”). According to magazine “Insurance TOP”, for the first 6 months in 2009, “AXA Ukraine” company has collected 162 million UAH of insurance premiums. “AXA Insurance” – 135 million UAH, having taken according to such indicator the 11th and 13 th places in a rating of the largest insurers of Ukraine.