Bank Eliminates Third-Party Mediator
Insider Scoop on Sberbank Insurance Broker's Shakeup
Sberbank Insurance Broker, one of the heavy hitters in the insurance game, has seen a significant exodus of top managers, with recruitment on hold at high levels, sparking excited chatter among insurers. The broker's impending fate seems shrouded in mystery, with whispers of closure, a shift to another company, or a restructuring lurking in the shadows. Let's dive into the intriguing facts surrounding this enigma.
The Managers' Exit and a Halt on Recruitment
A barrage of rumors has erupted following the announcement that several key players, including those overseeing the network, large business (CIB), and loss settlement expertise, have bid adieu to Sberbank Insurance Broker. Adding fuel to the fire, sources have reported that the broker has temporarily halted the hiring of new employees at higher echelons.
Sberbank Insurance Broker's Position in the Market
In 2024, Sberbank Insurance Broker, 100% owned by Sberbank, stood in the limelight, securing the second spot in terms of premium volume (4.5 billion rubles), according to data from the Association of Professional Insurance Brokers. The company boasts a sprawling regional network with branches in 63 regions, 11 directorates in territorial banks, and a head office in Moscow. Employing approximately 368 individuals, the broker caters to more than 36,000 active legal entities. Importantly, the company holds a license for intermediary activities as an insurance broker.
Closure, Restructuring, or Merger – What Lies Ahead?
Multiple sources have speculated that Sber may be contemplating the closure of Sberbank Insurance Broker. The possibilities include one of two resolutions: fully liquidating the broker and moving its sellers to Sberinsurance or transitioning the broker into another company at a high level, perhaps under the helm of heads from the "Welfare" block of Sberbank. These discussions are said to be led by the high-ups, due to the broker reaching its saturation point and the exhaustion of its potential for growth in commission income. However, Sberbank's press service has denied these allegations.
The Uncommon Coexistence of an In-house Insurer and Insurance Broker
Sources in the industry have noted that the on-going coexistence of an in-house insurer and insurance broker within a financial group is an unusual setup. This stems from the possibility of client redirection to other insurance companies instead of the group's insurer, with the financial group receiving commission income solely from the broker's actions. The investment expert, Andrei Barkhota, explains that the broker's primary objective is earning commission from third-party insurers' products, while the group's insurer seeks market share and client attraction.
Potential Consequences of a Broker's Closure or Restructuring
Several experts have stressed that the liquidation of a broker could pose significant risks to the group. Disadvantages include the potential loss of competencies, clients, reputational damage, and weakening of the overall insurance expertise of the holding. Consequently, experts suggest a more prudent solution would be re-profiling the broker into a new structure, with potentially promising directions such as a risk management consulting agency for corporate clients, a service company, or a modern aggregator of insurance offers.
Yulia Poslavskaya
The sudden exodus of key managers overseeing areas such as network, large business (CIB), and loss settlement, combined with a temporary halt on recruitment at higher levels, raises questions about the future of Sberbank Insurance Broker's role in the finance and business sector.
Given the unique coexistence of an in-house insurer and insurance broker within Sberbank, concerns about the potential consequences of a broker's closure or restructuring extend beyond just the insurance industry, with experts suggesting prudent solutions that can help maintain the group's insurance expertise and competitive edge.
