Insurance company Respect can not cope with obligations to developers

The auditors indicated the risk in the work of the insurance company Respect.
The insurance company Respect may face difficulties in fulfilling its obligations, the conclusion of Intec-Audit, published on the Respect site, says that the auditor acknowledged the diversification of the risk of the insurance portfolio Respecta as insufficient. In the construction industry is a crisis, the auditor explains, some insurants of "Respect" bankrupt, there is a risk of non-fulfillment of their obligations.

The representative of Respect does not share the opinion of the auditor: the company carefully selects risks and evaluates developers with mandatory monitoring of construction projects.

As practice shows, monitoring does not always help: the insurer already had responsibility for 693 million rubles. for those insured who are in the bankruptcy proceedings. As the representative of the company assures, the reserves for this responsibility are fully formed, there is no risk of default.

"Respect" is the leader of civil liability insurance for the developer (GOZ) in terms of premiums: according to the data of the Central Bank, the company collected 6.8 billion rubles in 2017. In "Respekte", more than 2200 developers are responsible for the liability, says the website of the insurer. The company does not disclose the total liability limit on them.

The investment strategy of "Respect" did not like the auditors. In 2017, it brought the insurer a loss (1.7 billion rubles., According to the company's accounts): it invested its own funds in derivative financial instruments, the report says.

Auditors recommend that companies invest in more profitable financial instruments. Respect still invests them in derivative financial instruments, this is a long-term strategy, the insurer's representative says, already at the beginning of this year it brought the company profits of more than 1 billion rubles. Despite the failure in investment activities, Respect for 2017 received a profit of 583.9 million rubles, he points out.

In the "Respect" was a check of the Central Bank, told "Vedomosti" two people close to the insurer. Verification of the Central Bank ended on April 27, confirms the representative of Respect, and did not find any violations of solvency or financial stability: "According to our information, the regulator has no complaints about the activities of our company." According to the representative of Respect, the Central Bank regularly checks all major insurers of developers. The major insurers of GOZ (VSK, "Prominstrakh") had no checks of the Central Bank this year, their representatives said.

The Central Bank does not comment on the acting companies, says its representative, but constantly monitors insurers of developers.

The Central Bank itself approves the list of insurers of developers, this list is decreasing, now it has 14 insurers and one mutual insurance society, and before it was more than 60. Some companies listed in the Central Bank do not insure developers in practice. It is impossible to assess the real financial situation of the developer, Western companies refuse to take such risks into reinsurance, and in the event of a crisis in the construction industry, several developers will immediately have problems, Dmitry Shishkin, head of the Ingosstrakh insurance liability department, is sure. Therefore, neither Ingosstrakh nor other large financially stable insurers are engaged in this business, Shishkin explains.

Now premiums on GOZ are collected by 10 insurers, and they work only with those objects where the share agreement was concluded before October 20, 2017. "Thus, after a while, the number of insured will begin to decline," the representative of the Central Bank says. ". Since the autumn of 2017, this type of insurance has been replaced by the Fund for the Protection of Shareholders' Rights, where developers are obliged to transfer contributions in the amount of 1.2% of each contract.

Insurers of GOZ are now forced to seek new sources of income. The Central Bank promises to continue monitoring their work, as there are negative factors: a strong concentration in the insurance industry of the Defense Industry and increasing risks on construction sites. If necessary, the Central Bank is ready to take supervisory response measures with respect to these insurers.