The reduction in insurance segments related to lending and investment life insurance led to a drop in sales of insurance products through banks, and the remuneration share of credit institutions decreased. As a result, in 2022, the cost ratio for doing business of Russian insurers dropped.
The profit of insurers decreased which was associated with a decrease in income from investment activities. At the same time, profitability of the Russian insurance market remained at a fairly high level due to the regulatory and supervisory easing introduced by the Bank of Russia for market participants. Return on equity was 19.5%, return on assets was 4.6%.
In nominal terms, the market rose slightly - by 0.5% to RUB 1.8 (EUR 24.01 billion) and amounted to 1.2% of GDP (vs 1.3% of GDP in 2021). During the year, GWP fell sharply in the second quarter, after which began to recover and in the fourth quarter exceeded the level of 2021 by 8.1%.
The key influence on market dynamics in 2022 was provided by active sales of life insurance, growth in motor insurance due to increased demand for MoD and an increase in MTPL cost, a decrease in the volume of retail loans, which led to a decrease in credit life and health insurance, and an increase in the cost of medical services, which contributed to an increase in voluntary health insurance.
Paid claims in 2022 increased by 12.1% to RUB 893.2 billion (EUR 11.80 billion). This growth was caused by inflation and an increase in the number of insured events in certain segments. Paid claims increased in all major insurance segments, according to the regulator.
The capital of insurers in 2022 increased by 13.3%, to RUB 1.1 trillion. Total insurance reserves increased by 6.2% to RUB 2.9 trillion at the expense of non-life insurance reserves.
The number of insurance companies in 2022 decreased by 7, to 140. At the same time, concentration of the Russian insurance market has intensified. The share of top 20 in GWP amounted to 88.3% (+1.9 pp). SOGAZ remains the leader in terms of premiums collected (RUB 305.53 billion), SBERBANK life insurance (RUR 167.44 billion) ranks second by a wide margin, while INGOSSTRAKH ranks third.
Access xprimm.com and download the latest Russian insurance market statistics for FY2022 (in RUB and EUR).