The Central Bank has warned of the withdrawal from the market of insurance seven insurers

The launch of the multilateral Agency agreements designed to increase the availability of insurance policies, could lead to a reduction in the number of players in this market. This was stated to journalists by the Director of insurance market Department, Bank of Russia Igor Zhuk, reports

“The need to sell [insurance policies] in the regions that are problematic, definitely changes the business model of the companies. And we see in fact, and according to plan reduction in the number of players,” said beetle.

Now the Central Bank has information about the withdrawal from the market of insurance seven insurers, said beetle. According to him, their caregivers, including those associated with “evolutionary processes” — the accession and absorption of subsidiaries.

Beetle reminded that the deadline for the signing of the Agency agreement is July 25, and those insurers who after this date will not be included in the system of a single agent, leave the market.

CB representative said that the decision of the Agency agreement was adopted at the General meeting of members of the Russian Union of motor insurers (RAMI), and the organization’s Charter States that the company did not comply with the request of the General Assembly, is excluded from the employees ‘ Union. The company is not a member of the PCA, will be deprived of license insurance, he stated.

Multilateral Agency agreement assumes that the company will be able to sell in regions where compulsory motor vehicle liability insurance became unprofitable for insurers, the policies of any company, to distribute the losses from problem areas between all participants of market OSAGO.