RUSSIA: Expert RA: life insurance will grow by 21% in 2021, and by 13% in 2022

1 December 2021 —
By the end of 2021, the life insurance market will grow by 21% y-o-y, and will reach RUB 521 billion (~EUR 6.18 billion), as the Expert RA agency said in its forecast, ASN reports with reference to the agency's review.

According to Expert RA, volatility of 2020 in life insurance gave way to active growth in 2021 - the drivers are life insurance of borrowers and mortgage insurance. The life insurance market is growing strongly in 2021.

For 9 months of 2021, according to the agency, life insurance increased by 27% y-o-y, and GWP reached RUB 380 billion (~EUR 4.51 billion*). In absolute terms, the market added RUB 80 billion and of this about 43% was provided by life insurance of borrowers. In general, positive dynamics are noted in all segments of life insurance. Low bank rates, as well as various preferential mortgage programs, contributed to the active growth of life insurance of borrowers. In the first 9 months of 2021 the segment exceeded RUB 100 billion in premiums.

At the end of September, concentration of the life insurance market increased again. 89% of life GWP are provided by the top 10 life insurers, while 78% being generated by the top 5.

Expert RA predicts that by the end of 2021, insurance of borrowers will amount to RUB 135 billion (+40%), investment life insurance will reach RUB 220 billion (+20%), accumulative life insurance - RUB 160 billion rubles (+10%).

The dynamics of the life insurance market in 2022 will be largely determined by changes in regulation of sales of investment and accumulative life insurance. In the absence of serious economic shocks, as well as sharp regulatory changes, the life insurance market in 2022 will grow by about 13% to RUB 590 billion, and the growth of life insurance of borrowers, following retail lending trends, will slow down to 15%, the segment will amount to RUB 155 billion, while accumulative and investment life insurance will grow at a moderate pace at the level of 15% and 10%, respectively, follows from the agency's review.

* at the following exchange rate:

1 EUR = 84.3050 RUB (01.10.2021)



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