The major part of life GWP (61%) came from investment life insurance (ILI), which amounted to RUB 291 billion. At that, credit insurance accounted for 20%, universal life insurance - 14% and other types - 5%.
According to ARIA, SBERBANK Life insurance remained the leader (38%). In 2018, the insurer increased its GWP by 77% to RUB 182 billion. Evgeniy GUREVICH, the general director of KAPITAL Life insurance, believes that the life market grew mainly thanks to ILI last year. However, the growth of this class has been exhausted, which is confirmed by the sales dynamics- in 2018 quarterly sales began to slow down and by the end of 2018, GWP of ILI even dropped. In 2019, sales of ILI will go down, GUREVICH predicts. "This will affect the entire life market. Active explosive development ended in 2018," he added.
On one hand, the decline in ILI was caused by the market's oversaturation, and, on the other hand, by the fact that an average income under three-year ILI contracts amounted to 3.3%, while rates of the majority of bank deposits for three years rarely fall below 4-5% per annum, as the monitoring results of the Bank of Russia show. Because during ILI sales customers often get confused about significant insurance conditions, shown by monitoring data, the Bank of Russia intends to tighten the rules for sales not only for ILI, but also for universal life insurance. The estimated date of entry into force is April 1, 2019.
The draft of new rules provides for mandatory written disclosure of product information to customers: assets, in which funds will be invested, the procedure for calculation and payment of investment and guaranteed income, total contributions under the program and total amount of investments, the procedure of calculation of insurance amount for each type of risk, redemption amounts in case of early termination, as well as agent and commission fees of the insurer and resellers.