STATISTICS: Russia, FY 2015: Market up by 3.65% fuelled by the MTPL line
Moreover, domestic insurance companies have reduced the costs for doing business, due to the optimization and the high competition on the market.
"Insurers have strong internal resources to improve the situation in the industry and are seeking for new sources of development: to improve the quality of claims settlement, to reduce costs, and to actively promote the new products in the life insurance segment, to develop sales of the non-credit insurance products through banks, to actively invest in technology components (databases and insurance bureaus, telematics and automated data processing about customers, loss, etc.)", added Pavel SAMIEV.
"Cleaning up" the market
The Russian Central Bank continued its strategy of "cleaning up" the domestic insurance market, constantly analyzing the companies whose financial stability raised questions. Thus, in 2015, the number of insurance companies decreased by 35%, or a market share of 1%. One of the main claims of the authority to companies is the poor quality of assets, in which funds of insurance reserves were placed.
By the end of 2016, there will be no more than 200 insurance organizations on the market, announced Igor YURGENS, President of the All-Russian Insurance Association (ARIA) and President, Russian Association of Motor Insurers (RAMI) in late October 2015. "Last year were revoked about 60 licenses, 100 companies are in the high risk zone. And, by the end of current year will remain about 200 organizations on the market", stated Igor YURGENS for local press.
In 2015, EXPERT Ra estimates that the "poor quality assets" account for about 20% of the total assets of the Russian insurance companies.
A comprehensive analysis on the Russian insurance market's performance in 2015 will be available in the forthcoming issue of the XPRIMM Insurance Profile Russia 2015, to be officially launched in April, on the occasion of the XXth edition of the Russian Reinsurance Conference.
Click here to pre-order your copy of the report at a 15% discounted price.
Access www.xprimm.com and download the FY2015 Russian insurance market statistics.