FEATURES OF BANK INSURANCE IN RUSSIA: PROTECTION OF INTERESTS OF COMPLEX FINANCIAL SERVICES CONSUMERS

Abstract

Objective: To define the features of selling insurance products by banks in Russia. Methods: abstract-logical method. Results: Basing on the detailed analysis of bank insurance product “collective insurance of borrower’s life by the bank”, the problems are marked out which arose in the Russian financial market due to the features of credit agreement construction and the low financial literacy of the population. The proposals are given for improving the situation and forming the demand for insurance services in the society. Scientific novelty: It is shown and proved that the so called imputed insurance decreases the market potential of many services and, finally, discredits the insurance service itself. The banking product construction has been viewed in a new way, the “drawbacks” are revealed, which need to be corrected by regulation: 1) accession of a borrowers to the insurance program cannot in any way be connected with their receiving credit; 2) the borrower must be given full information about the insurance service and its cost when accessing them to life insurance program; 3) credit agreement cannot impose on the borrower additional obligation to pay interest for the sum not stipulated for this type of agreement; 4) lack ofinsurance interest of the borrower. The main limits of development are revealed, i.e. low insurance culture, low income level of the population, information vacuum in the sphere of complex insurance products and insurance advantages. Practical value: Measures are proposed for improving thestate regulation of integration processes in the banking andinsurance sectors, as well as increasing the financial literacy of the financial services consumers.