Viorel VASILE, SAFETY Broker: There is a very aggressive fee reduction trend
The level of the fees granted by the insurance companies for the civil liability insurance policies for motor vehicles (RCA) has been on a descending trend lately, which could result, in certain areas of the country, in a drop of the insurance coverage degree, Viorel VASILE, CEO, SAFETY Broker specified within the XPRIMM Time for Business show.
“Economically, we can no longer put up with this fee reduction level. There is a very aggressive a fee reduction trend. Unfortunately, the authority or the rest of the market fail to understand the broker’s role and what the broker does based on the collected money. It is assumed that there is a fee that is taken only for the sale, which is not true. That fee is assigned for consultancy throughout the year. When we sold a civil liability insurance policy for motor vehicles (RCA) to the insured, and the insured’s car is hit by a third person, it is still us who provide the consultancy”, Viorel VASILE specified.
According to him, the average fee currently charged on the line of civil liability insurances for motor vehicles (RCA) is of 14%. According to a new draft of amendment of the norm on the civil liability insurance for motor vehicles (RCA) (23/2014) which is now subject to public debate on the website of the Financial Supervisory Authority, the supervisor could, however, intervene by the limitation of the fees, based on its own analyses.
“A 2-3 percent reduction of the broker’s fee is not relevant. The focus should be on the reduction of the cost upon indemnification and on the education of the drivers. The drivers and the insured should be aware of the fact that, upon the occurrence of an event, they should inform the insurer. If this were done, the insurer could contact the victims in time and there would no longer be situations where various people practically trade the indemnification, moral damages and the rest”, he added. “There are various, let us call them, intermediaries benefiting from the people’s misfortune. If the insured were aware of the fact that they should notify within 48 hours, the insurer would definitely contact the victims and would manage to keep this hazard of the moral damages under control”