In 1H2024, the market amounted to RUB 1,293.61 billion (EUR 13.99 billion), which is 20.55% more y-o-y in local currency. Insurers' paid claims increased by 18% and reached RUB 583.71 billion (EUR 6.31 billon), according to data published by the Central Bank.

The Central Bank notes in its review of key performance indicators of insurers that the drivers of insurance market growth in life insurance were accumulative and investment life insurance, and in non-life insurance – voluntary health insurance and Motor Hull. The growth in life insurance was supported by active sales of short-term programs with guaranteed returns, an increase in disposable income of the population, as well as expectations of high returns on programs tied to Russian shares, against the backdrop of rapid growth of the stock market at the beginning of the quarter.

A noticeable decline was recorded in credit life insurance and accident and illness insurance segments through the banking channel. A significant increase in new car sales, including car loans, had a positive effect on the dynamics of motor insurance due to a deferred demand and expansion of supply. Together with the increase in demand for used car insurance, this contributed to the continued growth of the Motor Hull market.

MTPL remained virtually unchanged. The pressure on this market was also exerted by the appearance of short-term policies on the market, the cost of which is lower than the cost of annual programs.

The main increase in life paid claims was due to accumulative life insurance, and in non-life insurance - MTPL. A significant increase in paid claims was observed in the insurance of property of individuals, where it was due to payments related to natural disasters. This is explained by flood payments in 39 regions of the Russian Federation as a result of the spring flood.

The net profit of the insurance market in 1H2024 decreased by 14.9%, to RUB 211.1 billion, of which RUB 166.3 billion came from non-life insurance companies, and RUB 40.4 billion - from life insurers. This led to a decrease in profitability indicators.

The main reason for the decrease in the financial result was a decrease in income from investment activities due to negative revaluation of assets denominated in foreign currency and losses from transactions with financial instruments received due to deterioration of the dynamics on the debt and stock markets. At the same time, the growth of interest rates in the economy contributed to an increase in interest income of insurers in the first half of the year compared to the first half of 2023.

The total amount of insurers' equity in 2Q2024 increased to RUB 1.5 trillion. The amount of insurance reserves increased to RUB 3.5 trillion, primarily thanks to life insurance. The total volume of insurers' assets in 2Q rose up to RUB 5.6 trillion.

The concentration of the Russian insurance market has not changed. The share of the top 20 by GWP was 88.7%. The leadership on the market was taken by Sberbank Life Insurance (RUB 168.08 billion), displacing the leader of 1H2023, SOGAZ, to third place, while AlfaStrakhovanie (RUB 137.39 billion) came in second.

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