30 insurers left Russian market in 2017
As of January 1, 2018 Russian market had 226 insurance companies, a year ago the number of licensed insurers was 256. The number of insurance brokers decreased by 30 (71 brokers as of 01.01.2018 against 101 brokers a year ago), as informed by the Central Bank.
Reducing the number of players by withdrawing the operating license by the supervisory body is not a novelty for the Russian market. In 2016, nearly 70 insurance companies lost their license as part of a financial market"s "clean-up" process initiated by the Central Bank after taking over the role of supervisory body for the insurance market. Bankruptcy, non-compliance with the increased capital requirements, inadequate solvency ratios, or non-compliance with the legal reporting obligations are the reasons for withdrawing the license most frequently encountered. On the other hand, in October 2017, the Central Bank initiated a process of preparing the financial recovery mechanism of insurance companies, thus correcting a legislative gap that hindered the "rescue" from bankruptcy of several companies.
In 2017 the Central Bank issued 10 new licenses to insurance entities including 4 insurance companies: 2 licenses for obligatory state insurance, 1 license for compulsory medical insurance and 1 license for compulsory carrier"s liability. Also 78 licenses of the insurance market participants were renewed.
According to the data on January 1, 2018 the list of insurers with 100% non-resident"s participation consisted of 25 insurance companies.