STATISTICS: Russia, FY 2015: Market up by 3.65% fuelled by the MTPL line

In 2015, the GWP of Russian insurers increased by 3.65% y-o-y, showing the slowest market growth pace since 2009. At the same time, the share of insurance in GDP decreased from 1.38% to 1.37%. The GWP growth was only possible due to MTPL tariffs increase.

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.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

RUSSIA: SOGAZ and VTB merge completed

SOGAZ and VTB group completed 100% of the transfer of VTB Insurance. The merge involves all the companies of VTB group, including VTB Life insurance and VTB health insurance. All necessary approvals from regulatory authorities were received, according to SOGAZ.

2018-11-01

RUSSIA: national rating of SiV Life confirmed at ruAA

Expert RA confirmed the rating of SiV Life at ruAA with a stable forecast. As the key positive rating factor the agency pointed to the high financial potential of the company's owner, Talanx AG, one of the leaders in the European insurance market with high international ratings.

2018-11-01

ON THE MOVE

IGI appoints its first Chief Technology Officer

International General Insurance Holdings Limited (IGI), the international specialist commercial insurer and reinsurer, has announced the appointment of Nasser ZAGHA to the newly-created role of Chief Technology Officer.

15.11.2018

TOP EVENT

Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.

06.11.2018

IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.

05.11.2018

See all