Over time, and especially in the last year or two, complaints, misselling became more and more. Customers perceived the agreement coli as a Deposit with a higher income. Often complained about insurers who do not read and understand the terms of the contract, and relied on the explanations of the agent.
As a result, the life insurance segment came under the attention of the all-Russian Union of insurers (VSS) and the Central Bank. The BCC adopted an industry standard, and the regulator has prepared draft requirements for the disclosure on key risks and sample memo-Annex to the agreement coli with their description. These requirements are related more to the agents than to the insurers, as insurance companies have already taken measures to combat Messalina. For example, immediately after signing the contract, many insurers make welcome calls to customers, and if it turns out that the buyer coli misunderstood the terms of the contract, he can terminate.
If liability to the client will be not only the insurer but also the agent (insurer is responsible for the completeness of the information, and the agent needs to communicate it to the client without distortion), it will help to reduce the proportion of dissatisfied and to cut those for whom a contract of investment insurance is not needed.
The agreement coli can be a transition from deposits to riskier and more profitable investments.
Those who enters into a contract coli deliberately, knowing that it is not a more profitable alternative to a Deposit, but a separate product that combines investment and insurance component, it is necessary to take into account the three most serious risk. All these features of investment life insurance are reflected in the insurance regulations and the contract, but the insured often finds out after the purchase of the policy coli.
First, capital protection. Here special problems arise. Both the Deposit and the investments in the coli are protected by law. The policyholder will receive the entire amount in full. However, if the return of the Deposit guaranteed by the Deposit insurance system, then the holder of the contract the coli there is a risk of bankruptcy of the insurance company. In recent years, the license of the life insurers did not respond, most of the companies are subsidiaries of universal insurance companies or banks and meet the necessary requirements. You should pay attention to credit rating owners. Reporting of all companies available on the sites, but the detailed analysis only to professionals. In addition, things can change by the time the end of the contract, so to avoid that risk cannot, and in this case the probability that the assets will not be enough to repay debts is quite high.
Secondly, the protection of income. Interest on the Deposit and repayment, even in the event of bankruptcy of the Bank are guaranteed according to the agreement coli there is no guarantee neither on income nor on its size. At the conclusion of the contract the client selects a strategy, but how will the object of investment is to accurately predict not taken even professionals. So there may some UPS and downs. Even if the strategy worked in one period, then the extension of the contract possible in reverse. In any case, it is necessary to understand that the higher the yield, the higher the risk. So the risk of loss of income remains one of the most high.
Thirdly, the possibility of termination and refund. There is a characteristic that is often silent at the conclusion of the contract. Coli long-term contracts, and subject to termination by the policyholder with him withholding part of the amount. The reason for the termination is not taken into account. That is, if a policyholder has any need of getting their money back, the redemption amount will be less nested, even if prior to the expiration of the contract left little time. To mitigate this risk you can split the contract into several parts, if they complied with the conditions on the minimum amount.
Anyway, investment life insurance is just one of the variants of investment. Unlike Western countries, in Russia for many years virtually the only investment opportunities were currency, Bank deposits and real estate. Shares of investment funds, shares and other instruments, successfully used in developed countries, remained inaccessible to most Russians.
Low interest rates on deposits, the fall in property prices, the volatility of the ruble combined with rapid development of digital technologies contribute to the growth of interest in alternative investment options. The agreement coli can be a transition from deposits to riskier and more profitable investments.