Why insurance is hard to choose
Insurance is a passive-demand product. You cannot touch it, and it is only useful when something goes wrong. So people usually buy a policy because the law requires it (OSAGO, compulsory motor third-party liability insurance), a bank requires it (mortgage) or after friends have had a misfortune. And the choice almost always comes down to "where is it cheaper".
In reality, a client's image of an insurer is made up of four factors: reliability, service, product range and price. Let us look at how to assess each of them without special knowledge.
Reliability
Reliability means a high probability that the company will meet its obligations. Probability is the key word: a promise of a "100% guarantee" is a marketing ploy.
A licence is the bare minimum
In Russia only organisations licensed by the Bank of Russia may carry on insurance business. The regulator sets requirements for capital, reserves and solvency, reviews reporting and revokes the licences of companies that fail to meet them. You can check a valid licence for the type of insurance you need in the directory of financial market participants on the Bank of Russia website.
What else to look at
- credit ratings from Russian agencies (ACRA, Expert RA, NCR, NRA) and how they change;
- how many years the company has been operating and which types of insurance it specialises in;
- regulator announcements on restrictions or orders;
- for OSAGO and life insurance — protection mechanisms if the licence is revoked (see our article on guarantees of insurance payments).
For a typical client, the licence and the regulator's supervision are the main reference point: you do not need to understand solvency margins or asset structure. But for a large sum or a long-term contract — savings life insurance, insurance of expensive real estate or business property — it is worth spending time on ratings and financial statements.
Service
Service is assessed twice — when you buy the policy and when a claim occurs. The second moment matters more: that is what you buy insurance for.
Service when paying claims
- how to file a claim: online, in a mobile app, at an office in your city;
- whether there is a 24/7 hotline and an accident commissioner who comes to the scene (for KASKO);
- which service stations, clinics and contractors the insurer has contracts with;
- what deadlines for reviewing a claim and paying are set in the rules;
- how many complaints are filed against the company — the Bank of Russia and the financial ombudsman service publish such statistics.
Strict claim checks are not a drawback in themselves: the insurer protects the common insurance fund from fraudsters. It is bad when checks turn into delays and unjustified refusals.
Service when buying
Easy purchase, clear documents, the ability to ask a specialist a question and get a written answer. A good sign is when you are shown the insurance rules and the list of exclusions before payment, not just the price.
Additional services are also useful: towing, an accident commissioner, telemedicine, help with collecting documents. Ask whether they are included in the policy price or paid separately.
Product range
A company that insures your car, flat and health is convenient for a family or business: one contact, a clear way of communicating, sometimes discounts for a package. But a wide range does not mean every product is good, and "boxed" programmes do not always reflect your risks. Compare terms for each type separately and ask about tailored programmes.
Price
For OSAGO, rates are set within a range approved by the Bank of Russia, so the difference between companies is limited. For voluntary types — KASKO (motor hull), property insurance, DMS (voluntary health insurance) — the price depends on underwriting and the company's rules. Here it is important to compare not the figure but what it covers:
- the list of risks and exclusions;
- the deductible;
- the sum insured and limits for individual risks;
- how damage is determined: calculation, service station invoices, wear and tear.
A cheap policy with a high deductible and a narrow list of risks may cost you more after a loss than a policy with a higher price.
Checklist
- Check the licence for the type of insurance you need.
- Look at ratings and reviews about claims, not about sales.
- Read the insurance rules, especially the exclusions section.
- Compare 3–5 offers on the same terms.
- Find out how a claim is filed and how quickly it is paid.
Company profiles are collected in the catalogue of Russian insurance companies; you can compare offers in the comparison section or submit a request — Polis Re specialists will help you find options.