Insurance companies can participate in the pension reform
Pension reform is ongoing, but officials are unhappy with its progress. Management companies have started to invest pension money, but the violations have provoked scandal. And recently, the Minister of Health and Social Development Minister Mikhail Zurabov proposed the idea to attract insurance companies to participate in the pension reform. Note that people often associate pension reform, and life insurance, which has recently developed a rapid pace. We asked for comments to the Director General of OOO "CO Zenith" Alexander Kabanov. – How do you feel about the idea of insurance companies participating in the pension reform? – Applies a positive, because the world practice shows that the insurers may well form the pension reserves and, along with pension funds and management companies to provide pension benefits to citizens of Russia. – What do you see the role of insurance companies in the formation of a new pension market? – Insurers are fulfilled the fundamental condition of the state and divided the business of life insurance and other types of insurance, so they may proceed to such operations. We are also moving in this direction.
Earlier this year, our company ("SB Zenith") has acquired a specialized life insurance company – "Siberian Salamander," which will promote savings life insurance programs. Positive for the Russians: first, they have a choice between the NPF, MC and SC, and secondly, SC traditionally adhere to conservative policies on investment and therefore they have the most secure investment portfolio. – What is the annual percentage of the policyholder can expect that encloses your company a contract funded insurance for 5-10 years? – The long-term accumulation insurance income customers (fixed or guaranteed portion of income) would be about 4% per annum. However, to the guaranteed income policy holder can receive and additional investment income, the value of which is determined annually based on investment SC. – What is the difference between the cost of programs for men and women? – Fees for which the calculated life insurance programs are in direct proportion to the statistical life expectancy of men and women. Accordingly, it is making some adjustments to the cost of insurance for a specific person. For example, the cumulative pension insurance, the estimated period during which the pension will be paid to both men and women are different, hence – the higher cost for women.
And if the program add the risk of death from any cause, the cost of insurance will be higher in men. – Why do I need life insurance? Maybe it's better to invest money in the bank and earn interest? – The time when banks and financial companies extracted higher profits due to rising inflation and the operations of state property – has passed. The situation in the country and the economy is gradually returning to normal. Banks are beginning to do their intended purpose – carrying out calculations and credit (households and enterprises). As a result, interest rates have fallen dramatically. And this is not the limit. For the normal functioning of the economy rates should be reduced to the level of 2-6%.