Premiums from life insurance reached EUR 13.05 million or 4.4% of the total market, 57.42% more y-o-y, while those from non-life insurance reached EUR 280.59 million, or 56.25% more than in 1H2012.
"From January 1st, all Belarusian insurance companies switched to accrual accounting. This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows in order to give a more accurate picture of a company's current financial condition. So this growth seems to be more of a technical result rather than a premium boost," explained Anton NEDVEDSKIY, External Relations Manager, Belarusian Association of Insurers.
According to Anton NEDVEDSKIY, the Belarusian insurance market is not influenced by the international market. It is rather closed and it's difficult to see international trends in Belarus. However, in coming years, the insurance market in Belarus can be absorbed by foreign companies, primarily Russian ones. The authorities do not see anything wrong with that and hope that the arrival of foreign capital will increase competition and thereby revitalize the market, as stated by InfoBank.
According to the Belarusian Association of Insurers, in the last three years, the presence of foreign capital in the insurance market grew up by over 60 percent and still counting. So, if in 2010 on the insurance market in Belarus foreign companies controlled 8 insurers, now they are 13. Moreover, in the near future the authorities intend to eliminate another major constraint for the foreign capital on the insurance market. There is a plan to cancel the requirement according to which the insurance market is opened only to a foreign company that has had experience in the insurance business for at least 10 years.
Access www.xprimm.com and download the 1H2013 Belarusian insurance market statistics.
Market portfolio (in EUR and BYR):
- Gross written premiums
- Paid claims
- Growth rates
- All insurance market
- Life insurance