XPRIMM News No. 314, June 16, 2016

Swiss Re commited to support the Russian insurance market's development

Today, Swiss Re hosted its annual event dedicated to the Russian insurance industry: Swiss Re Summer Reception 2016. On this occasion, we have talked with Ms. Nicola RAUTMANN, Market Executive Austria & CEE and Mr. Christian ENGELN, Head of Client Management about the perspectives of the Russian insurance market, as well as about the role Swiss Re is prepared to play in the region.

XPRIMM: As an active reinsurer on the CIS and Russian markets, which were the main challenges for Swiss Re in 2015 and also in the beginning of this year?
Nicola RAUTMANN: The challenges in the market which Swiss Re and our clients were faced with, were dominated by two topics: The economic pressure causing lower GNPIs, and with that reduced volume of cessions, as well as, the fluctuating exchange rate of the Russian Rubble versus the Euro. Both factors led to intense negotiations at the time of the renewal. In almost all cases we could nevertheless find common ground and satisfying solutions for both parties.

XPRIMM: Christian, as Head of Client Markets Russia, how would you evaluate the current stage of development for the primary insurance market in Russia? Also, as a reinsurer - what are your plans in order to support the local market? What are your ideas for new products / distribution channels, considering the stagnation of the local economy?
Christian ENGELN: No question, this is the hardest time for most of the Russian insurers since they exist. The growth model does not work anymore in an environment, where everybody - business, private consumers, state - cut back insurance expenditure. On the other hand, shareholders run out of patience to support low margin insurance assets, and the regulator urges for more transparency and improvement of the capital base.

However, we believe that this is also the time when insurers usually adapt and streamline processes, decrease costs, but at the same time embrace new technologies and develop new products. This is a stressful turbo-modernization, where Swiss Re wants to show to the executive management of Russian insurers: We are there to help, offering a strategic tool, far beyond pure reinsurance capacity. Why not thinking together with us about new products in Life and Non-Life, explore Big Data topics, benefit from our worldwide experience with innovative technologies, develop a Telematics strategy, and work with Swiss Re on capital and solvency solutions?

Click here for the full interview!

Find out more about Swiss Re Summer Reception 2016 (click here).

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