Auto insurance is one of the most relevant services
Over the past few years, car sales in our country have grown significantly. Today it is one of the most dynamically developing industries. More and more people are buying new cars from dealerships. This testifies not only to the growth of the well-being of fellow citizens, but also to the qualitative development of this market.One of the confirmations of this is a large number of lending programs, with the help of which anyone can purchase a car in the shortest possible time. As a result, more than half of the sales of all major dealers are credit cars. Since the requirement to insure collateral in favor of the creditor bank is legally fixed, it is quite natural that insurance companies are interested in this market segment. Therefore, today in any car dealership you can buy a car on credit and immediately insure it in one of the presented insurance companies. Thus, the close cooperation of car dealerships, banks and insurance companies has led to a mutual increase in the volume of activities.
Due to the increase in the number of traffic accidents every day, as well as the increase in prices for spare parts and repair work of specialized service stations, auto insurance is becoming one of the most popular and relevant services. This, in turn, pushes insurance companies to develop not only corporate sales, but also retail ones. Some insurers have focused on developing a network of representative offices throughout the country, as well as points of sale of insurance products. Various marketing tools are actively used to increase sales and advertise the company's brand. More and more car owners are getting acquainted with the auto insurance service, and competition between insurance companies allows the client to choose the best conditions at an affordable price.
Insurance products
Considering the insurance products offered by the market, positive changes can be noted. Firstly, the terms of transport insurance (CASCO) have become more loyal. Secondly, there is a whole range of additional services provided by insurance companies in combination with the insurance itself, such as the evacuation of a damaged car, the conduct and payment of an independent auto merchandising examination, payment for repair and restoration work of service stations, round-the-clock consulting and technical assistance in all regions of Ukraine. Third, companies have begun to offer "packaged products" that are ready to be sold through an intermediary network and do not require a detailed risk assessment. Thus, the client can choose not only an insurance company, but also certain insurance conditions that will best meet his requirements.
It is also interesting that in addition to CASCO insurance, insurance companies have begun to actively offer civil liability insurance for vehicle owners, as well as life and health insurance against transport accidents. To a certain extent, this was facilitated by the adoption of the Law of Ukraine "On Compulsory Insurance of Civil Liability of Vehicle Owners". On the other hand, insurance companies have fully appreciated the capacity and opportunities of the auto insurance market, which has led to the emergence of new combined products.
Significant changes have been made to the procedures for obtaining a loan and insurance. A striking example are some car dealers who draw up all the necessary documents in their showroom. Since the procedure is well developed, the process of obtaining a loan and insurance contracts takes no more than 2 hours. This is convenient for the client, the bank, and the insurance company.
Against the background of the simplification of the insurance procedure, the expansion of the list of services provided and the complexity of protection, another trend is emerging - an increase in insurance rates. In fact, this is a normal phenomenon for the market, since many companies at the beginning of the implementation of joint programs with banks greatly underestimated tariffs, relying on certain sales volumes. Over the years, companies have accumulated their own loss statistics, experience in handling insurance events, and also faced a constant increase in prices for both cars and spare parts. All this became the basis for increasing the tariffs for CASCO insurance. Therefore, now a number of large companies are striving to equalize the tariffs for car loan programs with their standard conditions. For example, if a couple of years ago the average insurance rate for a domestically produced car was 3.5-4%, today companies offer about 4.4-4.8%. A similar increase in tariffs occurred in relation to foreign-made cars ...