The Russian insurance market grew by 17.52% in 2021 supported by recovery in economic activity after 2020. GWP increased in all major segments, and more than a third of the growth came from insurance related to lending to individuals, about a third - from investment and accumulative life insurance, according to a review of key performance indicators of insurers published by the Central Bank.

Total GWP in 2021 exceeded RUB 1.8 trillion (EUR 21.50 billion). According to the regulator, key influence on the market dynamics was provided by accelerated growth in retail lending, which supported credit life insurance; increased interest of the population in investment and accumulative life insurance in search of profitable financial instruments; an increase in Motor Hull cost due to an increase in car prices and spare parts; partial recovery of demand for low-cost voluntary health insurance programs thanks to recovery in household incomes. The situation in the MTPL segment was rather stable. The growth rate was 2.51%.

In 2021, the life insurance segment continued to grow, its share in the market portfolio reached 29%. The maximum growth rates were observed in life insurance of borrowers, which is associated with a high demand for mortgage and consumer loans from individuals. The growth in property insurance for legal entities and individuals was facilitated by an increase in demand for these types of insurance. The recovery of economic activity and an increase in cargo turnover supported cargo insurance, as well as business and financial risks.

Insurers' paid claims in 2021 increased to RUB 797 billion (+21%). Growth of paid claims was observed in all major market segments, except for insurance of property of legal entities.

The number of insurance organizations in 2021 decreased by 13 to 147 companies. This contributed to increased concentration of the Russian insurance market. Share of top 20 insurers in terms of assets amounted to 81.5%. SOGAZ remains the market leader in terms of GWP (with a share of over 19%), SBERBANK Life Insurance moved up to second place, displacing AlfaStrakhovanie to third.

At the end of the year, profit of Russian insurers decreased by 1% y-o-y to RUB 245 billion. The decrease in profit was due to a reduction in investment activities. The result from insurance operations increased due to improved life insurance operations. As a result of the decline in profits for 2021, profitability of insurance companies decreased, but remained at a high level. Return on equity was 26.5%, return on assets was 6.0%.

The asset structure of insurers remained stable throughout 2021. Total value of insurers' assets at the end of 2021 amounted to RUB 4.3 trillion (+12.5%), insurers' capital - RUB 996 billion (+13.3%).

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