STATISTICS: RUSSIA, 1Q2021: market GWP increased by almost 8%, while profits fell by a third

17 June 2021 —
STATISTICS: RUSSIA, 1Q2021: market GWP increased by almost 8%, while profits fell by a third
Total market GWP in the first quarter of 2021 increased by about 7.9% y-o-y, to RUB 460 billion (EUR 5.17 billion). Paid claims for the period increased to RUB 185.3 billion (+16.2%), according to the statistical data, published by the Central Bank.

As the regulator noted, positive dynamics was observed in all major segments, except for property insurance of legal entities and investment life insurance. While the insurance market's growth since the early 2021 is being supported by an increase in credit life insurance against the backdrop of a rapid increase in mortgage and consumer lending to individuals. GWP in life insurance of borrowers increased by almost 20%, and in insurance against accidents and diseases - by 30%.

The voluntary health insurance segment in general returned to growth thanks to renewal of large corporate agreements, while GWP under agreements with citizens, individual entrepreneurs and small companies continued to decline.

The growing number of car loans, the cost of cars and the demand for them in the corporate segment contributed to an increase in motor insurance. The growth in Motor hull exceeded 13%, and in MTPL it was 7.56%.

Regarding paid claims, the regulator noted that they increased mainly due to an increase in payments on completed medium-term investment life insurance contracts. While for most of the main insurance types there was, on the contrary, a decrease in paid claims.

Profitability of the insurance market declined, but remained high (25.6%), while the profit of insurers fell by almost a third, to RUB 49.4 billion. At the same time, the share of net income from insurance activities increased, and from investment activities - decreased (mainly due to currency revaluation), the Bank of Russia explained.

SOGAZ continues to maintain its leadership in the market, collecting 28% of all market GWP (RUB 129 billion) in the first quarter. AlfaStrakhovanie (RUB 32.3 billion) moved from 3rd to 2nd place in terms of GWP volume. RESO-Garantia ranked 3rd (RUB 29.5 billion), INGOSSTRAKH - 4th and Sberbank life closes the TOP-5.

Access and download the latest Russian insurance market statistics for 1Q2021.