RUSSIA: in April and May, the market decreased by about 15% y-o-y

14 July 2020 — Marina MAGNAVAL
In April and May 2020, market GWP decreased by almost 15% y-o-y. However, this contraction was not catastrophic for the market, as the Expert RA rating agency noted in its press release.

The largest y-o-y decline in April and May was observed in insurance against accidents and diseases (-36.2%), cargo and Motor Hull. The down trend was also demonstrated by life insurance (-15.7%) and insurance of property of individuals (-15.2%). While more favorable results, if compared to the market general picture, can be noted for voluntary health insurance and insurance of other property of legal entities.

As the pandemic situation is evolving and restrictions are being lifted, the forecast for 2020 is adjusted. But the agency believes that the pandemic will continue to have an effect on the market in the second half of 2020 and even in 2021. The positive scenario of Expert RA provides for 7% reduction of the market in 2020, while the negative scenario (in case the situation gets worse) - a decrease of total premiums by 20%.

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