For the first time since 2019, Russian insurers increase the number of sales points
For the first time since 2019, insurers increase the number of sales points. According to experts, this is due to a decrease in the effectiveness of traditional channels, primarily banking, and an increase in costs during their use. At the same time, insurance companies are actively developing franchise networks that can save on current costs. However, in this case, the risks of reputation losses, as well as the losses of the developed client base, are growing.
According to the results of 2024, insurance companies significantly increased the number of points of sales, it follows from the Kommersant survey of market participants. Over the past year, RESO-Garantia opened about 100 branches, bringing their number to 1.1 thousand pieces. VSK increased the number of agent offices by 48 pieces, up to 80 pieces, franchise offices – by 160 pieces, up to more than 200 pieces. Alfastrakhovania opened nine new staffing offices and 68 – in the franchise, thus, the number of sales points reached 95 and 220 pieces, respectively. « Consent » increased the number of agent offices by 20%, franchise – by more than 50%.
In 2025, companies will continue to increase sales points.
Alfastrakhovania plans to increase the number of regular offices by 85 pieces, and the number of franchise offices can grow by 320–350 pieces. VSK also plans to develop agent and franchise offices. Renaissance Insurance plans to open 20-30 franchise offices before the end of the year. « Consent » wants to increase the number of agency offices by 10-15%, and 40 franchises.
The branch is the main representative office of the company in the region. The agency is a territorially separate structural division of a branch that performs the functions similar to the branch in another territory and equipped with jobs. The franchise office means a point of sales, opened independently by an agent under the brand of the insurer.
Earlier, insurance companies preferred to reduce their units. So, according to Rosstat, from 2019 to 2023 the number of branches of insurers decreased by 1.5 times, to 2.4 thousand pieces. According to experts, activating the opening of new offices is associated with a decrease in the effectiveness of other sales channels, including banking. “In recent years, the beneficiaries of imposed insurance in recent years have been banks that took up to 80% of the cost of life insurance policies,” explains Dmitry Yanin, chairman of the board of international confederation of consumer societies. According to independent experts Andrei Barkhota, the share of bank remuneration of banks is 50-60% of the insurance premium in the sale of credit insurance and accidents. At the same time, the share of the banking canal is growing on the sale of insurance policies (in 2024 it exceeded 66%), although insurance companies reduced expenses in this segment to 113 billion rubles. (See “Kommersant” from March 17). At the same time, their own sales can be cheaper for insurers by 15–20% of the policy, Mr. Yanin notes.
In addition, despite the digitalization and increase in the share of online sales, “personal contact is still critical for sales of complex insurance products, increasing customer confidence and effective cross-sales,” said Nikita Evseenko, director of the Rexoft IT company. Offline suite is especially important for working with corporate customers and penetrating into regions with low digital literacy, the expert indicates.
At the same time, the opening of franchise offices for insurers is more profitable than their own branches.
“The franchise allows you to increase new sales with lower costs than through classic channels. No need to spend money on the opening of a branch, photo and other related expenses, ”said Arthur Kolomets, general director of the inssmart agency sales service. In this case, insurers only need to connect the franchisee to their information system, provide them with the necessary insurance products, rules, methodology, operational and financial control, the All -Russian Union of Insurers note. In addition, the franchisee is motivated by their own business, therefore, “they demonstrate higher efficiency when opening points, and this costs them two to three times cheaper due to economy on scale,” Mr. Evseenko notes.
However, a franchise model creates additional risks for market participants. Nikita Evseenko indicates the risk of reputation losses due to the complexity in ensuring unified service standards at all franchising points. “The limited loyalty of partners pose a threat to the loss of the developed client base, since the franchisee can switch to a competitor who offered the best conditions,” the expert notes.
