Regulator assesses efficiency of European Accident Statement and other market participants’ initiatives
The Bank of Russia starts tracing, whether the performance of the financial market participants’ initiatives has had the desired effect. It has already produced such assessment of four performed initiatives in the field of insurance in the pilot mode.
A regular monitoring will make it possible to enhance the efficiency of implementing proposals made by the professional community.
The initiatives concerned are the ones articulated by the financial market participants in autumn 2013 after the Bank of Russia has been authorised to act as a mega-regulator. The said initiatives form a benchmark of the regulatory policy (so-called 233 KPIs).
First the regulator monitored proposals with the greatest progress of implementation such as e-insurance, simplified loss settlement system, information disclosure by insurers, including information on agency fees and encouragement of the fee reduction. The Bank of Russia analysed relevant statistics and professional community questionnaire results. The Bank of Russia officers assessed, which legislative amendments had been adopted to implement each of the initiatives as well as actual current deliverables. Besides, they identified factors preventing declared objectives from being reached, and proposed a plan of further actions to overcome them.
Specifically, legislative and regulatory framework was prepared to introduce the European Accident Statement, a completion of paperwork on a road traffic accident without calling to police officers. For instance, in 2014 a national average proportion of losses settled under the OSAGO-related European Accident Statement was 10%, whereas in December 2015 this figure was up to 26.2%. Consumers’ unawareness of the simplified loss settlement accounts for the problems in this field. In addition, the existing procedure for using technical means of verification to confirm insured events and indemnities in case of motor third party liability insurance does not afford required protection against fraudulent actions due to insufficient requirements for road accident recorders, the authors of the monitoring say. A compulsory data submission, based on GLONASS (Global Navigation Satellite System) only, jointly with other global satellite navigation systems, will be introduced in Moscow, the Moscow Region, Saint-Petersburg and the Leningrad Region from 2017 to improve the situation with the use of the European Accident Statement. In two years' time this rule will apply to the other regions. Simultaneously, ? 50,000 indemnity limit will be lifted.