STATISTICS: RUSSIA, 1H2016: The market concentration trend continued in 2016. There are probably nearly 100 insurers in the red zone

The Russian insurance market increased by 14% in nominal terms and in the local currency, in the first half of 2016. "Unlike many other sectors of the financial industry, insurance is growing. We are ahead of other industries and this is a fact," said Igor YURGENS, President, All-Russian Insurance Association (ARIA) and President Russian Association of Motor Insurers (RAMI).

Life insurance and MTPL were the key drivers for the positive insurance dynamics. On the same note, other "unsaturated" types of insurance - such as liability insurance for damage to third parties, property insurance of individuals, voluntary health insurance etc. - saw a positive development.

"We have revised our assessment of market growth prospects to negative, reflecting our expectation of negative real growth of the insurance market in 2015 and 2016, and unclear prospects that growth will pick up, given significant macroeconomic uncertainties. Given the current environment, we are not expecting any new entrants to the market", stated in S&P's report.

The market concentration trend continued in 2016 and according to the Central Bank estimations, there are probably nearly 100 insurers in the red zone leaving the market in the following months. Thus, the tightening of regulation will lead to an increase in the reliability and the transparency of the market. Through measures of market "cleaning", the insured will obtain payments and benefits, which finally will contribute to the increase in the confidence in the insurance industry.

Access and download the 1H2016 Russian insurance market statistics.

Note: A full version of comprehensive analysis of the Russian re/insurance market's performance 1H2016 will be available in the forthcoming edition of the XPRIMM insurance Profile - Russia, to be relased in Baden Baden, on October 23rd, 2016, on the occasion of the XPRIMM Reception.

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

Share |

Related articles


ALLIANZ announced three executives appointments

German insurance Group ALLIANZ announced three senior leadership appointments at ALLIANZ DIGITAL Health, ALLIANZ Private Krankenversicherung and Allianz Global Corporate & Specialty SE.



Inclusive insurance on the agenda of the second CEE & SEE - Regional Actuarial Insurance Conference in Skopje, Macedonia

Insurance should be accessible to all social classes, regardless of their wealth and 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. The low insurance penetration rates across the region show the need for another approach.


Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.


IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.


See all