RUSSIA: ARIA: credit insurance is making the main contribution to the market dynamics in 2021

1 December 2021 —
According to the ARIA Insurance Institute (All-Russian Insurance Association), the main contribution to the market dynamics in 1H2021 was made by credit insurance of individuals, which exceeded 22% in the total GWP, having increased by 47% y-o-y, the President of ARIA Igor YURGENS said at the Forum of Insurance Market Leaders on November 24, ASN reports.

The insurance market in the first half of 2021 increased by 21% compared to 2019, which indicates a new impetus for the development of the industry, and that is inextricably linked to numerous processes in the national economy, the President of ARIA said.

According to the results of the first half of the year, non-credit insurance of individuals in the total GWP structure occupies about 31% (of which 20% is life insurance and 11% is non-life), which is comparable to the GWP volume of voluntary corporate insurance (32.6%). It was also noted that compulsory types of insurance for several years have been keeping a relatively stable share of the market portfolio (~14%), and some moderate growth dynamics in this segment is mainly due to the change in MTPL pricing, including the effect of expanding the tariff corridor.

The structure and dynamics of demand for insurance services in 2021 largely depend on parallel economic processes, said Ella PLATONOVA, Vice President of ARIA during the forum. "We see a significant impact on the overall dynamics of credit insurance, which is growing faster than the loan portfolio of individuals. Accordingly, "cooling" of the credit market may lead to a reverse correction. In turn, development of certain segments of voluntary insurance, such as voluntary health insurance, Motor Hull, non-credit life and property insurance, should help maintain a steady demand for insurance services in subsequent periods", she explained.