Banks have limited insurance
Financiers give less than credits, which also enrich insurers. Policies’ sellers incur losses and do their best to attract clients. The beginning to credit recession was put with last year’s financial crisis in the USA and Europe: the Ukrainian bankers were refused in foreign loans because of what they had to curtail crediting in currency. And now National Bank of Ukraine, trying to moderate activity of buyers and to bring down a rise in prices, has toughened rules of crediting and has raised cost of loans. Therefore now banks’ credit departments are empty as never before.
Together with bank clerks insurers also face a lot of problems: autoinsuranse, real estate credit insurance and a life insurance is on hardly sale. Director of the Ukrainian insurance group has recently noted that the rates of credit’s sales fall the same as demand for corresponding kinds of insurance falls. On results of May they expect for falling sales under the auto insurance on 10-20 %, because of decrease in crediting.
The damage can be even greater. In May 40 % from planned losses will be provided by losses, connected with the fact that some banks have stopped financing, and other banks under different pretexts refuse to clients, and the third ones finance credits, but under very high rates. Such decrease in sales will also affect insurers.