OREANDA-NEWS. November 08, 2011. In the nine months of 2011, the company’s bankassurance premium collected in Povolzh’e regions exceeded 101,535,896 roubles, which is 20% higher than in the same period of the previous year. 73% of such premium pertains to mortgage insurance, reported the press-centre of ROSNO.

Of 13 regions serviced by ROSNO’s Privolzhskaya Directorate, in the 9 months of 2011, the largest bankassurance premium amounts were collected in Perm Region, Orenburg Region and Udmurtia — 33.9 mln. roubles, 27.5 mln. roubles, and 14.9 mln. roubles respectively.

The partners of IC ROSNO in Povolzh’e are large finance and credit institutions of the federal and regional scale. In the running year, representatives of the banking sector have been highly active in protecting their borrowers’ interests against financial risks due to larger consumer demand for mortgage programs. The growth of bank lending, including mortgage loans, in its turn, activates this insurance market segment.

The demand for mortgage insurance is growing. This is evident from the quantity of applications filed by those who want to acquire coverage under this type of insurance. Banks are developing mortgage products and implementing state programs such as social mortgage, housing loans for military service personnel, etc. According to the forecasts of banking sector representatives, by the end of 2011, the volume of issued mortgage loans may grow 1.5 times.

In general, insurance has become a standard instrument used to decrease lending risks and protect both the borrower’s and the lender’s property interests. In particular, mortgage insurance provides comprehensive insurance coverage of real estate object (mortgage) against the risk of loss or damage, coverage of borrower’s life and health against accidents and sickness, as well as protection against the risk of losing title to the mortgaged object. This instrument is popular among creditors and borrowers. When entering long-term credit relationship with banks, clients, in the majority of cases, prefer to acquire a reliable comprehensive insurance protection.