RUSSIA: KPMG: the average annual growth rate of the insurance market by 2024 will exceed 11%

15 September 2021 — Marina MAGNAVAL
KPMG prepared a report forecasting development of the insurance market in Russia in 2021-2024, based on an analysis of historical indicators, current market trends, regulation, drivers of insurance product development and general expectations of industry experts.

According to this analysis, the insurance market in Russia by 2024 will reach RUB 2.3 trillion (~EUR 26.75 billion*), and the average annual growth rate will be 11.6%, KPMG said.

Both segments will contribute to the market development: life and non-life insurance. By 2024, it is expected that insurance companies will pay more and more attention to the changing needs of customers, offering new, more personalized services and products, and the most promising segments will be motor insurance, voluntary health insurance, and property insurance. Growth of these segments will be supported by the positive macroeconomic environment, increased market transparency, modification of insurance products and creation of a digital customer experience.

It is forecasted that in 2021-2024 GWP volume in non-life insurance will grow by an average of 9.5% per year, reaching RUB 1.5 trillion by 2024, and its share in the total market portfolio will slightly decrease relative to 2020 and amount to 70% vs 73%. GWP volume in life insurance will almost double, mainly due to an increase in the investment attractiveness of life insurance products with an accumulative component, and will reach RUB 746 billion by 2024, the report says.

* at the following exchange rate:

1 EUR = 85.9880 RUB (15.09.2021)

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