STATISTICS: RUSSIA, 3Q2021: the market grew by more than 19%, credit life insurance remains the key growth driver

14 December 2021 —
STATISTICS:  RUSSIA, 3Q2021: the market grew by more than 19%, credit life insurance remains the key growth driver
Total GWP for 9 months of 2021 amounted to RUB 1.356 trillion (~EUR 15.98 billion), which is RUB 220 billion or 19.4% more y-o-y, follows from data published by the Bank of Russia. Paid claims increased from RUB 464.7 billion to RUB 587.5 billion (+26.4%).

Credit life insurance remains the key development driver due to the continued high demand for consumer and mortgage loans. In 3Q, life insurance of borrowers increased by almost a third - to RUB 40.1 billion, insurance against accidents and diseases - by 22%, to RUB 67.8 billion. Significant growth was also observed in accumulative and investment life insurance, supported by the interest of citizens in alternative financial instruments and active promotion of such programs through banks. Motor Hull segment grew as well, mainly due to the rise in the cost of policies caused by an increase in prices for cars and spare parts. Voluntary health insurance continued to recover, but its volume is still noticeably below the pre-crisis level.

Analysts note that paid claims grew in the third quarter in all major types of insurance, except for insurance of property of legal entities, where the aggregate result stood at RUB 203 billion.

The Russian agroinsurance market in the last 9 months of 2021 increased by 19%, amounting to RUB 6.4 billion (vs RUB 5.4 billion a year ago). Of the total GWP volume in the segment, RUB 5.5 billion were generated under insurance contracts with state support. A year earlier, GWP under the contracts with state support amounted to RUB 4.5 billion.

"The growth of the agroinsurance market with state support is due to both systemic support measures from the Ministry of Agriculture of the Russian Federation, the Bank of Russia and the Ministry of Finance of the Russian Federation, and also market factors - increased demand for agroinsurance from farmers and an increase in the cost of insured agricultural products", said NAAI (National Association of Agricultural Insurers) President Korney BIJDOV. He stressed that development of the subsidized agricultural insurance segment continues to outstrip the growth rates of the entire Russian market. "It should be noted that the agricultural sector in 2021 is influenced by various factors, both positive and negative. First of all, a sharply increased weather instability, which significantly affects the demand for insurance coverage for the agro-industrial complex", he added.

Sberbank Life Insurance has regained its 2nd place in the market, but SOGAZ has more than a two-fold lead. GWP of the leader, SOGAZ, amounted to RUB 287.4 billion (+22.5%). However, Sberbank Life Insurance has the strongest growth in the top five (+43.5%). As the CEO of the company Igor KOBZAR noted, the growth was ensured by investment life insurance and accumulative life insurance. Among other things, the growth in premiums is associated with expansion of the product line. It is also worth noting that for 9 months of the year Sberbank Life Insurance's paid claims became record-breaking in the entire history of the company (RUB 55.3 billion). "We expect that in 2021 the life insurance market may have record rates of GWP and paid claims in its entire history", added Igor KOBZAR.

AlfaStrakhovanie moved from 2nd to 3rd place. INGOSSTRAKH also moved - one position down - to 4th place. RESO-Garantia closes the top 5 - growth of the company was supported mainly by personal insurance (+23%).

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