For the first time since 2009, the market has not grown at all. Specialists attribute this stagnation primarily to a decrease in life insurance and changes of the market structure. Life insurance (except for insurance of borrowers' life) decreased by 19.2% last year, to RUB 317.5 billion, compared to the previous four years when it used to be the market growth driver. Among the reasons for this decrease, the regulator points out to the introduction of new sales standards and a low level of return on investment life insurance.
At the same time, experts note voluntary health insurance as a potential long-term market driver. This segment grew by 19%, to RUB 180 billion. On the other hand, one of the key market segments, MTPL, decreased by about 5%, to RUB 214 billion; the major event which influenced MTPL in 2019 was the beginning of tariff liberalization, which resulted in increased competition and lower average cost of the policies.
The dynamics of the market paid claims was also affected by impressive growth of paid claims in life insurance, as the regulator's data show.
Insurers' net profit in 2019 increased by 25.7%, to RUB 207.4 billion, while the insurance reserves exceeded RUB 2.5 trillion, 47% of which comes from life insurance.
Regarding the local companies ranking, SOGAZ (RUB 160.5 billion) became the market leader in terms of GWP, moving SBERBANK Life insurance to the second place. AlfaStrakhovanie ranked third, one position up. TOP-5 ranking also included INGOSSTRAKH and RESO-GARANTIA.
1 EUR = 69.3406 RUB (December 31st, 2019)
1 EUR = 79.4605 RUB (December 31st, 2018)
Market portfolio (in EUR and RUB):
- GWP
- Paid claims
- Growth rates
Market ranking in EUR and RUB (GWP / paid claims / market shares / growth rates):
- Total
- Life insurance
- Non-life insurance
- Motor Hull
- MTPL
- Accident insurance
- Health insurance
- Cargo insurance
- Property insurance
- and others
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