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 www.xprimm.com 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.