Russia and CIS insurance markets are highly challenging, TRUST Re study shows

6 April 2017 — Oleg DORONCEANU, Vlad BOLDIJAR
Sinisa_LOVRINCEVICNatural disasters, increasing capitalization requirements and synergies of costs, as well as higher acquisition costs are the most challenging issues for the CIS re/insurance markets, shows a study carried out by TRUST Re.

Analyzing re/insurance markets from 40 countries, that also covered the CEE and CIS regions, including Russia,  TRUST Re's study findings were presented at the XXIst edition of the Annual Reinsurance Conference in Moscow by Sinisa LOVRINCEVIC, Branch General Manager, TRUST Re Cyprus: "Natural disasters - such as floods and earthquakes, increasing capitalization requirements and synergies of costs, as well as higher acquisition costs - up to 45% for direct sales on the motor lines - are the most challenging issues for the CIS re/insurance markets," he said, adding that "the region has difficult markets, challenged by several issues, most of them originating in the low level of tariffs. Moreover, economic prospects are not necessarily the most optimistic amid declining oil prices or depreciating exchange rates of the local currencies. "

LOVRINCEVIC also emphasized that "governments should invest in insurance, to boost market growth, to increase demand for insurance products. There is a need of significantly investing in education, so that citizens become aware of the role and benefits of insurance. "

"The report's findings show that there is potential for growth in property insurance, financial lines, professional policies, D & O, life and health," concluded Sinisa LOVRINCEVIC.

3071 views
Share |