Answer: The crisis has not eliminated the issue of dumping from the market of corporate insurance products. In some cases it is even reasonable for the client. For instance, dumping offers are in demand for the property insurance policies required by the bank, which imply naming the later as the beneficiary.
On the other hand, in case of an insured event, any client wants to be indemnified fully regardless of a criteria that defined his choice of the insurance company. Even if the insurance company is not in able to pay the indemnification, the client still remains the debtor in accordance with the credit agreement.
As for the service products, such as corporate medical insurance, dumping may be effective in the short run. However the Insured who has already experienced the product, understands that it is not worth being tempted by the low prices. The time when the clients were choosing the cheapest insurance companies has passed.
Of course, BritMark would prefer to offer our clients the most expensive and, at the same time, the most reliable insurance coverage, but the so called “anti-crisis” budgets don’t allow that. That is the reason why the clients choose a reasonable level at a medium price.
The global western companies choose the Insurer based on the reliability of its parent company and the international ratings which, unfortunately, is not applicable to Ukrainian market. There are always a few insurance companies in Ukraine which use the aggressive strategy of dumping for winning the market share. This kind of behavior is always unprofitable when it comes to voluntary health insurance and is possible only if the shareholders can allow significant investments. Such companies provide the clients with a high level of service which tends to fall as the portfolio of their clients grows. Thus, the client is left with the following choice: either to work with a medium-priced but fairly reliable company, or save some money but then monitor the condition of the service provider closely and promptly react to any disturbing signs which may appear.
By using the services of an insurance broker the client can allow himself to go with the dumping offer but still be confident that the broker will terminate the insurance agreement with a questionable insurance company and will be able to influence the indemnity payout thanks to its bulk portfolio.