STATISTICS: RUSSIA, 1H2020: Generated GWP remained almost unchanged y-o-y in local currency

17 September 2020 —
STATISTICS: RUSSIA, 1H2020: Generated GWP remained almost unchanged y-o-y in local currency
In the second quarter, the decline in economic activity due to the pandemic led to a decrease both in GWP and paid claims, mainly because of reduction of insured events. In general, at the end of 1H2020, total market GWP amounted to RUB 739 billion (~EUR 9.39 billion*) , and remained almost at the level of 1H2019 (-0.03%), according to the data, published by the Central Bank of Russia.

At the same time, it should be noted that the market in European currency dropped by 8.75% y-o-y due to depreciation of the ruble against euro compared to the first half of 2019.

As the regulator mentioned, among the main insurance types, y-o-y growth in the second quarter of 2020 was observed only in insurance of other property of legal entities and accumulative life insurance. At the same time, decrease in the number of motor bank loans and sales of new cars led to a decrease in Motor Hull GWP. But at the same time, the loss ratio decreased as well due to reduction in the number of insured events. MTPL volumes have hardly changed y-o-y thanks to compulsory nature of this insurance type.

Total amount of remuneration, received by intermediaries in 1H2020, dropped by 5.7% y-o-y, to RUB 145 billion. The pandemic accelerated growth of premiums sold via internet (to almost 6%), while the share of sales through offices decreased to 19.3%. At the same time, the share of agent sales channel increased (to 22.1%) and the share of bank sales dropped (to 34.6%).

At the end of 1H2020, the share of the market leader SOGAZ increased as a result of an impressive growth of the insurer's GWP (to RUB 170.8 billion). AlfaStrakhovanie moved up to the second position in total ranking, while SBERBANK Life insurance moved down to the 5th place. However, SBERBANK Life insurance keeps leading the life sector, although the company's share on this market dropped to 24.44% (vs 40.59% a year ago).

* for the following exchange rate:
1 EUR = 78.6812 RUB (June 30th, 2020)

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