STATISTICS: CIS Region, FY2017: claims dropped by 6.83%

The CIS insurance business in general had a good year and finished 2017 with an average claims' decrease by 6.83% to EUR 8.45 billion. Aggregate GWP almost had no change, only a very slight decline by 0.22%.

However, in general average indicators demonstrate quite good results; the CIS markets are very different in terms of GWP, claims, market shares, economics, insurance development and trends. The biggest share of the CIS business is traditionally owned by the regional leader and trendsetter - Russia with almost 85% stake of the market. In 2017 Russian market generated EUR 18.57 billion of GWP (almost the same level as in 2016) and paid EUR 7.4 billion of claims, which was 6.62% less than a year before. Russia' market driver is life insurance and the most challenging segment - MTPL. In terms of GWP Russia is followed by Ukraine (with almost 6% of the regional market), Kazakhstan (4.24%) and Belarus (2.04%). The smallest shares are recorded by Tajikistan (0.1%), Armenia (0.27%) and Kyrgyzstan (0.06%).

Many of the CIS markets saw a declining trend last year mostly due to their currencies' fall against euro. For example, Ukrainian hryvnia in 2017 fell against euro by almost 18%. But some markets demonstrated the opposite situation in this regard. Moldovan market last year went up by 6.93% due to appreciation of the national currency. The biggest decrease of GWP saw Uzbekistan (-52.43%) where in 2017 claims broke the record over the last 10 years. Such a dramatic situation was caused by growth of agro and life insurance claims on the one hand, and by the currency reform which led to significant currency depreciation on the other hand. Speaking about agro insurance - in 2017 Ukrainian market had a quite opposite picture: agro GWP exceeded 2016 result by 28% thanks to expansion of the product range, extended coverage and mild winter conditions.

The regional insurance penetration level remains rather low compared to European markets mostly due to the lack of financial education, low level of trust based on complicated settlement procedures and existing fraud cases, many pending problems related to compulsory classes' development and low insurance culture in total. Some of the markets still have a very poor market portfolio, for example, Kyrgyzstan hasn't even introduced MTPL (postponed until 2019). Moreover, statistical data, provided by supervisory authorities, in many cases is really narrow and limited by only total figures. Thus, full analysis of the CIS region remains quite difficult due to lack of insurance information about Tajik, Kyrgyz, Uzbek local markets and absence of any insurance data about Turkmen market which is represented only by 1 state insurer - the State Insurance Organization of Turkmenistan.

Read an in-depth analysis of the CIS insurance market's evolution in 2017 in the latest issue of XPRIMM Insurance Report CEE, SEE & CIS - FY 2017.

Click here to request a copy!

Access www.xprimm.com and download the FY2017 CEE | SEE | CIS insurance market statistics. CIS Aggregate Figures per Countries are available here.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

The 15th International Risk Management Conference to take on 11-12 April 2019 at The Ritz-Carlton hotel in Almaty, Kazakhstan

The 15th International Risk Management Conference taking place on 11 and 12 April 2019 at The Ritz-Carlton hotel in Almaty, Kazakhstan. Since 2005, this Conference has become a traditional event not only for the insurance sector of the CIS countries, but has also acquired the international status. XPRIMM Publications is a traditional media partner of the event.

2019-02-07

Inclusive Insurance - a creative solution to narrow the protection gap in the emerging markets of the Southeastern Europe

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.

2019-02-14

Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.

2019-02-14

FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.

2019-01-10

ON THE MOVE

Peter CLARKE named VP & COO of FAIRFAX

FAIRFAX Financial Holdings Limited announced that Peter CLARKE has been appointed Vice President (VP) and Chief Operating Officer (COO) of FAIRFAX, reporting to FAIRFAX President, Paul RIVETT.

12.02.2019

ERGO Group appoints a Polish manager

Adam ROMAN, board member of Ergo Hestia (Poland), will hold the position of Head of Global P&C of the ERGO group, effective 1 March. His tasks will include supervision over property insurance of the group in the areas of underwriting, actuarial and pricing, as well as reinsurance.

07.02.2019

TOP EVENT

Inclusive Insurance - a creative solution to narrow the protection gap in the emerging markets of the Southeastern Europe

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.

14.02.2019

Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.

14.02.2019

FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.

10.01.2019

See all