Pavel SAMIEV, Managing Partner, the Russian National Agency of Financial Studies and Executive Director of the Insurance Institute, All-Russia Insurance Association has identified for XPRIMM the 5 main trends that have charaterized the Russian insurance market's evolution in 2015:
- there was the sharp change in market structure by types of insurance where the share of compulsory MTPL insurance has exceeded the Motor Hull insurance share and will reach a record level of 23-24%;
- bancassurance - basically credit insurance "collapsed" due to reduce of credit insurance. At the same time, the life insurance segment grew in terms of non-credit life insurance products, but in these cases the main sales channel were large banks, especially SBERBANK;
- the concentration of first companies on the market has reached a historical high level and continues to grow. The TOP 20 insurers account for 80% of the total GWP volume. On Motor Hull and MTPL insurance lines the main share of premiums are written by the first ten and, respectively, eleven companies. On Property insurance of individuals eight insurers collected 80% of premiums;
- as expected, the claims in the first 9 months of 2015 have grown faster as compared with the premiums. The average level of claims reached to 47.4% compared to previous year 44.9%; the level of net-claims totaled 48.3% compared to previous year - 48.9%. While the overall level is not critical, the combined claims ratio is 99% on the market, although the effect of reducing costs is close to ending. The share of the costs for doing business compared to premiums on the market as whole has stabilized at 42%, but may be further decline and pass of 40%;
- is very visible progress in terms of quality of assets, the share of illiquid assets decreased in the top 50 companies due to tough measures of Central Bank. But, the issues regarding the quality of assets and covering of the reserves also has not been solved, because it's largely related to motivation and resources of shareholders.
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