"This year we have compared more or less the same figures (the growth of premiums compared to the growth of payments). Between 2013 and 2012, there were obvious discrepancies due to different accounting system of premiums. For example, in 2012, the company kept accounting in received premiums and in 2013 - written premiums", explained Andrei DANILCHYK, General Director, StrakhExpertGroup, Belarus.
"Moreover, the growth rate did not correspond with the expected results. For the January-September 2014 period, inflation was more than 13% and until the end of the current year it is expected to increase up to 16-17%. The devaluation of the national currency was 11.7% (USD) and 9.6% (EUR) as compared with September 2013. These undoubtedly affected results of the insurance products - MTPL, Green Card, Motor Hull and others that reported to the foreign exchange", added Andrei DANILCHYK.
In the analyzed period, life and accident insurance segments noted significant growth due to the bancassurance system. So the share of life insurance increased from 1.62% in 3Q2013 to 3.18% in 32014. The situation is similar on the accident insurance, where the 3Q2013 market share was 6.29%, and in 3Q2014 it went up to 10.43%.
According to Andrei DANILCHYK, the economic crisis, the non-payment of wages, a high inflation, and the lack of major projects in the constructions industry have led to a decrease in the gross written premiums on the property insurance segment (-15%).
At the end of 2014 it is expected an increase of underwritten premiums on the Motor Hull segment, as it became profitable to buy new cars in Russia, as a result of the prices set in Russian ruble, the devaluation of Russian ruble and the absence of customs duties and other barriers to the import into Belarus.
Access www.xprimm.com and download the 3Q2014 Belarusian insurance market statistics.
Market portfolio (in EUR and BYR):
- Growth rates
- Life and Non-Life market rankings
- Market shares