RNRC associates this reduction with the acquisition of ERGO by RESO-Garantia, and the exit of some players from the market. At the same time, the average amount of its own retention remained at the level of 3%, as well as the cost of reinsurance programs, which averaged to 4% ROL (ratio of reinsurance premium to the placed limit). At the same time AXA XL joined the leading reinsurers group (Gen Re, Hannover Re, SCOR and Swiss Re).
The aggregate capacity (at the exchange rate of 01.01.2020) based on the data on renewal of disproportionate reinsurance contracts for cargo and vessel insurance has not changed (RUB 30 billion). The average amount of its own retention has also remained the same (3%), while the cost of reinsurance increased by about 19%, to 3.2% ROL. Hannover Re and Swiss Re are still leaning the ranking here.
The proportion of obligatory disproportionate liability reinsurance contracts is rather small and there were no significant changes during renewal. Here, the leaders are Hannover Re and Partner Re.
A noticeable increase was observed in the aviation risk segment - an average of 20%. According to RNRC, the increase is due to the global trend, meaning that the segment is loss-making for insurers, as well as due to some large losses of Russian airline companies in 2019.
RNRC noted a strong dependence of Russian risks on trends of international reinsurance markets. In 2020, the company expects increased optimization of the cost of property programs; changes in the aviation segment due to a huge decrease in flight activity (premiums will decrease by at least 20%), which will make this market more volatile. According to RNRC, the mentioned trends "can lead to optimization of insurance coverage and increase of its effectiveness, as well as maximize concentration of reinsurance premiums on the Russian market", the report says.