"New regulatory mechanism led to a decrease of the average premium amount in the segment, which made it more competitive. We expect that the effect of the new regulation and motor insurance market stagnation will be noticeable in 2020, thus total GWP in the segment will drop", the company mentioned in its study.
The growth rate of the total market in general is estimated to reach 13% in 2020 (less than in the previous two years). "This is due to restrained economic growth and stagnation of disposable income of the population, as well as a decrease of average premium amounts in life insurance, voluntary health insurance, MTPL and Motor Hull, which together occupy a significant market share", analysts explained.
According to the experts' forecasts, the growth rate of the insurance market's assets will also slow down to 10% in 2020 (vs estimated 13.5% growth in 2019 and 20% growth in 2018), TASS informed.