Отношения между финансовыми институтами и потребителями

SOGAZ has taken the lead almost for all main types of insurance and has gained a considerable market share. In general, the Group has taken the first place in terms of direct voluntary (classic) insurance. According to data of the Federal Insurance Supervision Service for the first quarter of 2009, SOGAZ has been ranked first among Russian insurers with regard to all types of insurance whereby achieving a market share of 11%.

SOGAZ is traditionally focused on corporate sector insurance covering companies and corporations in various industries: fuel and energy, transport, chemistry, metallurgy, machine building, aerospace, banking, etc. The Group protects property interests of companies that form the backbone of the Russian economy such as OJSC GAZPROM, OJSC Gazprom Neft, OJSC NK Rosneft, nuclear power (State Corporation Rosatom) and electricity companies such as OJSC RZD, State Transportation Company Rossiya, OJSC West-Siberian Metallurgical Complex, OJSC Power Machines, OJSC Combined Machine Building Plants. In addition, SOGAZ actively cooperates with the Property Management Department of the President of the Russian Federation, Federal Customs Service, and leading domestic credit and financial institutions such as Sberbank, Vneshtorgbank, Gazprombank, and others.

Major Clients are

OJSC Gazprom

OJSC Rosneft

State Atomic Energy Corporation Rosatom

JSC Russian Railways

JSC Gazprom Neft'

STC Russia

JSC Severstal

SIBUR Group

Gazprombank, OJSC

Evraz Group S.A.

ENI & Enel

JSC Siberian Chemical Plant

OAO MOSENERGO

JSC Ural Electrochemical Integrated Plant

OJSC AK Transnefteproduct

JSC The Fifth Power Generation Company (OGK-5)

FSUE Mining-Chemical Combine

Open Joint-Stock Company Fourth Generation Company of the Wholesale Electricity Market (OJSC OGK-4)

Eenergoatom Concern OJSC

FSUE Atomflot

JSC Airport Astrachan

The State Memorial and Natural Preserve Museum-Estate of Leo Tolstoy Yasnaya Polyana

The Group pays high attention to insurance of individuals, small and medium businesses, for which insurance programs have been developed to consider their specific features and peculiarities.

The Group’s development strategy is aimed at gradual integration into the international insurance market. SOGAZ is participating in a number of foreign projects: Blue Stream (construction of a major pipeline from Russia to South Europe via Turkey) and the construction of a North-European pipeline to connect West Siberian fields to consumers in Germany and other Western European countries.

The important area of the Group’s foreign economic activities has become participation in projects of the Shanghai Cooperation Organization (ShOS) that is constantly gaining its international authority. SOGAZ is the only insurance company that is the member of the ShOS Business Committee where it participates in implementation of socially relevant projects within state-private partnership.

The important strategic objective of SOGAZ Insurance Company is development of reinsurance activity. By 2012 SOGAZ plans to the take the lead in the Russian reinsurance market; for this purpose is it actively extending its cooperation with other domestic and foreign insurers and implements the policy of gradual integration into the international reinsurance market. The Group’s policy is focused on cooperation with leading reinsurance companies of world renown and impeccable reputation such as Munich Re, Swiss Re, Hannover Re, SCOR, Lloyds of London, and others.

One of the key advantages of SOGAZ is high accessibility of its services in the regions. Today, the Group’s regional network includes over 600 divisions and sale offices all over Russia and one representative office in the Republic of Kazakhstan. SOGAZ has developed and is deploying a model of Unified Insurance Centers (UIC) to develop the system of high-quality, reliable and accessible insurance services in Russian regions aimed at providing a maximum range of services from various companies within the Group. In 2008 SOGAZ opened 29 Unified Insurance Centers in a number of Russian cities, and about 15 additional UICs are to be launched by 2012.

SOGAZ Insurance Group offers a full range of insurance services, i.e. over 130 types of compulsory and voluntary insurance. This enables the Group to utilize an integrated risk management approach and ensure comprehensive protection of financial interests of its customers. High efficiency of the quality management system adopted in SOGAZ is confirmed by the certificate of compliance with the requirements of GOST ISO 9001−2001. The certificate covers all core activities conducted by the company.

3.2 Analysis of financial activity of the company

In 2009, the volume of the Russian insurance market grew by 2.

4% but the aggregate volume of insurance premiums (not considering compulsory medical insurance) decreased by 7.

5% (from RUR 555 billion to RUR 513.

2 billion), showing negative growth for the first time in recent years. The consequences of the financial crisis led to a significant reduction in the number of participants of the insurance market and to an increase in the share of the leading companies. In 2009, the share of premiums of the 10 largest insurance groups approached 60% and in some types — life insurance, property insurance, auto insurance, voluntary medical insurance, etc., this level was exceeded.

Based on the results of 2009, SOGAZ Insurance Group received RUR 42.8 billion of insurance premium (not considering compulsory medical insurance) and occupied third place on the market. Against the background of a general reduction in proceeds, the Group managed to demonstrate a real growth in premiums by 4.

4%, while at the same time maintaining the high quality of its insurance portfolio.

In 2009, the Group maintained leadership on the market of voluntary insurance (except for reinsurance).

Fig. 3.

2.1. — Voluntary insurance (except for reinsurance), 2009

Despite the reduction of the personal insurance market which lost about 6% in 2009, SOGAZ demonstrated growth in premiums of more than 10%, far outstripping its nearest competitors. The main increase in premiums can be explained by proceeds from voluntary medical insurance

Fig. 3.

2.2 — Voluntary personal insurance (except for life insurance), 2009

Under the conditions of a global drop in demand on the life insurance market, the Insurance Group represented by SOGAZ-LIFE preserved its third place in the ranking of insurers. Moreover, the share of the main corporate customer for the year reduced from 77.

5% to 48.

6%. In 2009, 17 open tenders for compulsory state health and life insurance were won, and as a result 88 thousand military men and equivalent persons were insured.

Fig. 3.

2.3 — Life insurance, 2009

The most significant losses on the Russian market can be observed in property types of insurance (except for liability insurance), demonstrating a decrease of 12.

7% (from RUR 317.

4 billion to RUR 277.

0 billion). However, SOGAZ Insurance Group managed not only to keep the same indicators as the previous year, but also to increase them by 3.

7%. Moreover, the Group became the leader in financial risks insurance, covering more than 20% of the market.

Fig. 3.

2.4 — Property insurance (except for liability insurance), 2009

On the market of voluntary liability insurance, which demonstrated 15.

7% growth in 2009, SOGAZ exceeded its own indicators of the previous year by 22.

5% and preserved the 2nd place in the ranking. Based on the results of the year, the Group became the leader in liability insurance of enterprises — sources of increased risk (market share — 18%).

Fig. 3.

2.5 — Liability insurance, 2009

The fact that SOGAZ Insurance Group was included in top 5 companies in terms of cargo insurance (2nd place), air transport insurance (2nd place), water transport insurance (4th place), railway transport insurance (4th place), compulsory medical insurance (3rd place), and accident and sickness insurance (4th place) is considered to be a positive indicator for the business.

In the sphere of auto insurance, SOGAZ traditionally follows a policy of maximum prudence, keeping the share of this type of insurance in its insurance portfolio at a low level, which contributes to the high reliability of its business. In 2009, SOGAZ started active work in insurance of agricultural risks. The specialized company LLC IC SOGAZ-AGRO obtained a license for agricultural insurance and was accredited with Rosselkhozbank, which raised interest in both major customers and small and medium agricultural businesses. The scope of the insurance premiums collected from agricultural companies in 2009 exceeded RUR 67 million, and RUR 10 million has already been paid for events insured against.

During the last year, SOGAZ actively participated in insurance of federal target investment programs and national projects. Liability of the Group for insurance of risks of federal target investment programs made UR 144 billion, which is much more than in the previous year and is above the planned indicators. The company’s successful work allowed, according to its own estimates, more than 10% of this market to be covered. Participation in insurance of facilities of the APEC Summit, which will take place in 2012 in Vladivostok, may be considered an achievement of the company.

Its own insurance reserves and reliable reinsurance coverage allow the Group to accurately and promptly perform its obligations on claims settlement. In 2009, SOGAZ provided insurance indemnity for a number of serious accidents, namely:

• Payment of RUR 226.

9 million for the loss OJSC Russian Railways suffered as the result of accidents at the railway bridge over the Irtysh River in September 2008. The first part of the insurance indemnity was paid by SOGAZ in December 2008 and the total amount of the payment comprised RUR 243 million;

• Payment of RUR 80 million for the loss caused to Rosenergoatom Concern as the result of the event insured against that happened at power unit No.5 of Novovoronezh NPP;

• Insurance payments to the relatives of the passengers who died during the accident with the MI-8MT helicopter near Volgograd in July 2009.

The system of SOGAZ Customer Service Centers operating in various regions of the country allows optimization of the process of claims settlement with corporate and private insureds and ensures a high level of service. SOGAZ monitors the quality of customer services in such a difficult sphere as individual motor hull insurance. A survey of more than four thousand private customers of the Insurance Group in various regions showed: more than 70% insure their vehicles with SOGAZ year after year, and 55% recommend the company to their relatives without any doubts.

In 2009, the IT unit of SOGAZ successfully implemented a number of serious projects aimed at the optimization of business processes in the company and improvement of its competitiveness. Full-scale introduction of an electronic workflow system and budgeting system was completed; the functionality of insurance and book-keeping accounting system was extended. During the previous year, a unified integrated information transfer system was created, which allows the head office and branches of the company to be unified into a single information environment, and the task of applied integration between the systems implemented in OJSC SOGAZ was successfully solved.

The achievements were highly appreciated by the professional community. In 2009, SOGAZ was awarded the IT LEADER annual national award, which is granted to corporate organizations and their IT managers for their contribution to the development of information technologies improving the efficiency of the organization’s activity and the standards of life of Russian society.

3.

3. Recommendations about optimization of activity of the company

For optimization of activity of the insurance company it is recommended:

To develop and introduce actions for increase of awareness of potential clients

Necessity of this recommendation is caused by following factors:

1. One-level specialists in different divisions obtain unequal reward.

2. The employees having the same functions, but accepted at various times, also get unequal wages.

3. Payment of various «extra charges» and «increases» for performance of the direct functions compensating low salaries.

4. The payment system isn’t transparent for heads of the bottom levels of management.

Integrate reproductive health messages into existing health promotion campaigns (e.g., campaigns to reduce obesity and smoking).

Conduct consumer-focused research to identify terms that the public understands and to develop messages for promoting preconception health and reproductive awareness.

Design and conduct social marketing campaigns necessary to develop messages for promoting preconception health knowledge and attitudes, and behaviors among men and women of childbearing age.

Engage media partners to assist in depicting positive role models for lifestyles that promote reproductive health.

Develop, evaluate, and disseminate reproductive life planning tools for women and men in their childbearing years, respecting variations in age; literacy, including health literacy; and cultural/linguistic contexts.

Conduct research leading to development, dissemination, and evaluation of individual health education materials for women and men regarding preconception risk factors, including materials related to biomedical, behavioral, and social risks known to affect pregnancy outcomes.

Consolidate and disseminate existing professional guidelines to develop a recommended screening and health promotion package.

Apply quality improvement techniques (e.g., conduct rapid improvement cycles, establish benchmarks and brief provider training, use practice self-audits, and participate in quality improvement collaborative groups) to improve provider knowledge and attitudes, and practices and to reduce missed opportunities for screening and health promotion.

Increase health provider (including primary and specialty care providers) awareness concerning the importance of ongoing care for chronic conditions and intervention for identified risk factors.

Develop and implement modules on preconception care for specific clinical conditions for use in clinical education at graduate, postgraduate, and continuing education levels.

Consolidate and disseminate existing guidelines related to evidence-based interventions for conditions and risk factors.

Educate women and couples regarding the value and availability of prepregnancy planning visits.

Increase health coverage among women who have low incomes and are of childbearing age by using federal options and waivers under public and private health insurance.

Apply public health surveillance strategies to monitor selected preconception health indicators (e.g., folic acid supplementation, smoking cessation, alcohol misuse, diabetes, and obesity).

Use geographic information system techniques to target preconception health programs and interventions to areas where high rates of poor health outcomes exist for women of reproductive age and their infants.

Use analytic tools (e.g., Perinatal Periods of Risk) to measure and monitor the proportion of risk attributable to the health of women before pregnancy.

Include preconception, interconception, and health status measures in population-based performance monitoring systems (e.g., in national and state Title V programs).

Develop and implement indicator quality improvement measures for all aspects of preconception care. For example, use the Health Employer Data and Information Set measures to monitor the percentage of women who complete preconception care and postpartum visits or pay for performance measures.

In insurance activity the number of concluded contracts substantially depends on system of payment of intermediaries. Level of commission payments in our country much more low, than abroad, therefore there are not enough stimulus for insurance agents for growth the number of concluded contracts and their preservation. A weak side in work with physical persons is control over timeliness of contracts prolongation. In the company there are cases of forgetfulness when employees of the company forgot prolong the contracts, showing absence of original interest in preservation of client base. The best way of optimization of expenses for the conclusion of contracts is an introduction of such systems of payment of agents which will sharply raise their productivity and will allow increasing number of concluded contracts in comparison with growth of payment of the agent.

System engineering of salaries is supposed to be spent in following stages:

1. An estimation of value of posts.

2. Ranging of posts according to an estimation of value and definition of number of categories of payment.

3. Construction tariff grids on the basis of an estimation of value of posts.

Firstly value of a position, as a basis for an establishment of an official salary is defined. The system of general and significant factors of an estimation of qualitative parameters help to set the functions which are carried out by specialists (instead of the post name in the list of staff is characterized).

For an estimation of value of posts advisers we will offer the following system of factors:

Responsibility for results of work;

Complexity of performed work;

Demanded minimum qualification;

Initiative and independence / a level of authority in decision-making.

To concrete definition of the maintenance and possibility of exhibiting of exact estimations each factor can be divided into subfactors. For example, such requirement to a concrete post as «the minimum qualification» can include: «a formation minimum level» and «the minimum experience».

To each factor (subfactor) the scale assuming of some levels of an estimation of a post is appropriated. The general estimation of each factor on this basis ranging of positions is formed, i.e. each position appropriates the certain category of payment.

Total number of categories is defined by an expert way on the basis of the requirements set by company management on minimum and maximum level, and also taking into account quantitative characteristics of factors of an estimation of position. The position which has typed least of points, receives the minimum, base salary. The living wage, established in region (it is found out by the analysis of a local labor market) is influenced to its size too. The base salary is as a basis for definition of size of payments under other categories.

For differentiation in salaries of the posts concerning one category of payment, but having a considerable difference in duties, and also for a possibility of growth of the employee in one category the plug from 2−4 steps for each category is entered. At installation of its ranges and sizes of an interdigit difference «overlapping of plugs» the next categories is provided i.e. the size of a salary of last step of the subordinate category should be above the size of a salary of the first step of the higher category. It gives the chance increases in the salary and growth of the employee within the category.

The difference size in payment for the next categories is defined for each category of the personnel. On the basis of it the tariff factors showing a parity of a base salary and borders of a plug of each category pay off.

The salary of a post concerning this or that category of payment, is defined under the formula:

OS=M* IТF,

Where OS — an official salary;

M — a base (minimum) salary;

IТF — individual tariff factor which is established in the limits defined for the category of payment of a concrete post.

The system of material stimulation will promote improvement of results of the organization by a direction of efforts of the personnel on achievement the purposes of the enterprise.

3. To implement programs on personnel training

Practice of work with clients is extremely primitive and nonprofessional. Frequently there is no knowledge of an insurance product, conditions of insurance and exceptions of an insurance covering, possibilities of granting of discounts and installments in payment. Absolutely there is no practice of the initiative offer to the client of any other insurance products considering its individual requirements.

Each recommendation is accompanied by a series of specific action steps and, when implemented, can bring results within 2 to 5 years. Based on implementation of the recommendations, improvements in access to care, continuity of care, risk screening, appropriate delivery of interventions, and changes in health behaviors of men and women of childbearing age are expected to occur.

Conclusion

In economy of the developed countries the special place is occupied with financial institutions. However financial institutions haven’t yet received so wide circulation in Russia. One of the perspective markets is insurance. Dynamics of changes in the Russian insurance business allows allocating steady tendencies of development.

Comparing a current state of the Russian market of insurance to the market of the developed countries, it is necessary to notice that, despite efforts undertaken in last year’s, the Russian insurance market considerably lags behind the insurance market of economically developed countries.

O ne of the reasons is mistrust from clients to the insurance company. F or overcoming of this phenomenon formation of the positive relation to insurance is necessary. O ne of the ways is insurance marketing. M

arketing in insurance, as well as in other sphere, takes an important place because it is necessary to know and consider refined inquiries and requirements of consumers by working out of an insurance product. I t is also necessary to offer competitive insurance services that can be reached only at skillful and rational use of marketing tools. M arketing helps the insurer to adapt for situation changes, both on internal, and on external to the insurance markets. Use of socially focused marketing helps the insurance company to be in interrelation with the clients, because one of features of insurance business is that the most important part for the client is a dialogue with the insurance company.

Other problem is the low awareness of clients about the insurance products. To improve communication between insurance intermediary and clients, interest to the client and an insurance product, it is necessary to enter stronger stimulus into system of payment and to provide agents with necessary professional knowledge. Only under these conditions it is possible to provide advancing growth of incomes over costs.

The recommendations given in paper have practical character and will allow the company to improve economic activities indicators.

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