"Introduction of preferential mortgage programs, as well as preferential lending to businesses, has led to the growth of mortgage insurance and insurance of collateralized property of legal entities. Softening of the consumer lending policy contributed to a moderate increase in related insurance (...) In 2021, the trends for the largest types of bancassurance will continue, as a result, the bancassurance market is expected to grow by 12%", the agency notes.
In 2020, credit insurance increased by 10.4%, while non-credit insurance increased only by 4.8%. The bancassurance market remains highly concentrated: the three largest insurers accounted for 60%, and the top 10 - for 81% of GWP received through banks.
The insurance of banks' own risks accounted for only 2.8% of bancassurance in 2020. Insurance of bank employees, including voluntary health insurance, accidents and illnesses insurance, and life insurance, generated the largest share of banks' insurance expenses in 2020 (RUB 14 billion), with an annual growth of 50.5%. For insurance of specific risks of banks (BBB, ATM insurance, D&O insurance, insurance of bank card issuers) the banks spent only RUB 1.9 billion, but its growth in 2020 reached 46.2%.
According to Expert RA, the bancassurance market in 2021 may grow by 12%. Accumulative life insurance will increase by 40%, while investment life insurance will decline by 15%. Demand for mortgages will continue, resulting in a 20% growth in mortgage insurance. Thanks to the recovery in consumer demand and economic activity, life and health insurance of borrowers, including accident insurance, will increase by 20%.
*1 EUR = 90.6824 RUB (December 31st, 2020)