Russian auto insurers are forced to change the principles of work in the Russian market after the mass exodus of car and spare parts manufacturers. Companies can hardly meet the needs of customers for repairs: they have to supply spare parts from third countries, and the prices for components have increased manifold. Under such conditions, insurers began to offer customers “take money” instead of repairs. Representatives of the industry spoke about the change in the paradigm of work in the market during the Avtostat conference, reports The Moscow Times.
Renaissance Insurance Vice President Sergei Kozhevnikov admits that almost every 10th client of the company was unable to repair his car under CASCO and preferred monetary compensation instead of vague wording about the timing of repairs. He notes that the company, in principle, cannot repair some cars due to the indefinite delivery of spare parts. At the same time, before the war, the share of car owners who preferred to “take money” was below 1%, the top manager notes.
“This crisis should show all insurers that it is time for them to start parallel imports of spare parts. Those who do not have their own warehouse will suffer with such a rise in prices,” says Kozhevnikov.
Particular shortage is observed with spare parts of premium brands: Mercedes-Benz, BMW and Land Rover. They are brought in by the "gray" way through intermediaries in Europe, Kazakhstan and the UAE. Against this background, prices for components increased by 2-5 times, the top manager notes. Similar problems are faced by Ingosstrakh, which is working on 7-8 spare parts supply channels, including the Middle East and China. Market representatives are literally looking for parts all over the world, some companies reach Chile, Colombia and Mexico, moreover, experts warn of a resumption of the practice of stealing cars "for spare parts".
“Money instead of repairs is a profitable topic for the insurer: the calculation is carried out at settlement prices, which are now below the jumped market prices for almost all positions. But for us, this topic is forced. We need the client to be satisfied with our service and stay with us. In addition, banks do not want such a clause to be in the insurance of cars they have lent,” a top manager at a large insurance company told the publication.
Complicate the adaptation of the insurance market to new realities can be banks that oppose the spread of the "money instead of repair" scheme. Olga Gabeeva, director of the auto business sales development department at Otkritie Bank, explains that the bank does not need a satisfied client, but a car in good condition, which is pledged on a loan. Customers can spend money on something else, ignoring car repairs.
Parallel imports and cash compensation cannot solve many of the problems of car owners, the newspaper notes. The Russians are under stress due to the risks of being left without car repairs and the uncertainties caused by the shortage of spare parts. Auto insurers are forced to adapt to new realities, in addition to searching for alternative suppliers, they are expanding their services, offering technical support for the car, as well as introducing new types of insurance to compensate for the difference in the cost of spare parts.