The insurance market in 2Q exceeded the result of the same period last year as well as pre-covid levels. Total GWP for the first half of 2021 amounted to RUB 894.2 billion rubles (+21% y-o-y)/EUR 10.37 billion, according to the data published by the Bank of Russia. Market paid claims increased to RUB 384.5 billion (+29.6%).

The regulator noted in its review of key performance indicators of insurers that this was facilitated by low indicators for the same period in 2020, when most of the restrictive measures were in force, as well as accelerated GWP growth for major types of insurance.

An increase in demand for borrowed funds from individuals supported the segment of life insurance of borrowers in 2Q, which grew by 2.2 times, insurance against accidents and illnesses - by 1.8 times. Increasing car loans and cost of vehicles led to an increase in the motor insurance market by 34.3%. Low interest rates on deposits keep stimulating interest in long-term life insurance as one of the alternatives to bank deposits. Increased attention of citizens and enterprises to health and disease prevention stimulated development of medical services provided by insurers, both under voluntary health insurance and life insurance programs.

At the same time, the profit of insurers in 1H2021 decreased by 18.6%, to RUB 121.3 billion. Profitability of the insurance market also decreased but remained at a high level - 24.5%.

SOGAZ keeps leading in the market, its GWP exceeded RUB 207.7 billion in 1H and for the first time the insurer overcame the level of RUB 200 billion generated for half of a year. AlfaStrakhovanie ranks second (RUB 65.2 billion). SBERBANK life insurance has moved from 5th to 3rd place (RUB 64.0 billion).

The Russian insurance market in the first half of 2021 saw good dynamics, "in fact, we saw a recovery growth in relation to the disastrous pandemic second quarter of last year", said Kirill BOBYLKOV, Deputy Head of the Marketing Department of ROSGOSSTRAKH. The second quarter of last year was the peak of restrictions (lockdown), which naturally led to a decrease in the number of insured events for many types of insurance, for example, travel, Motor Hull, MTPL, and affected paid claims. Therefore, in the first half of 2021, paid claims increased y-o-y. In February-March of 2021, a surge in paid claims was also due to an unusually snowy winter, as Kirill BOBYLKOV explained.

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