Reinsurance through the eyes of the Russian market

16 April 2015 — Olesea ADONEV
Regardless of the current economic situation in Russia, local re/insurers are powerless to place some 2.000 individual risks with western companies, because of the international sanctions affecting Russia.

"The insurance market is facing a series of problems, both political and economic. We can sum up the current state as being stagnant. We expect this to continue throughout 2015 or, at best, to register a slight increase in nominal terms", said Pavel SAMIYEV, Deputy General Director, EXPERT Ra, during the "Russian Reinsurance Conference", which takes place in Moscow on 16th and 17th of April.

The current risks banned from being accepted by the West are mostly related to government projects, Ella PLATONOVA, Chairman, National Insurance Guild, Russia, explained during the event.

Whether the list of sanctions will be extended, "the supervisor will have to set the right model for the reinsurance scheme for those risks that cannot be ceded. We could also look for capacity for these risks in Asia and the BRICS countries. Also, in this context, the issue of creating a government backed reinsurer for these specific projects has become actual", PLATONOVA added.

The event also featured the official launch of the Russia INSURANCE Profile, a report addressed to the international markets and provides an overview of the business environment of the Russian insurance market even the difficult economic conditions.

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