RUSSIA: in 1H premiums of one of the TOP-3 life insurers, RGS Life, dropped by 40%
Market specialists believe that in general it was caused by termination of relations with ROSGOSSTRAKH in January and OTKRYTIE group in April this year.
According to ARIA and Association of life insurers - premiums of RGS Life decreased, if compared to the same period last year, from RUB 28.6 billion (EUR 0.42 billion) to RUB 17.1 billion (EUR 0.23 billion). The declining trend was recorded already in the first quarter, and it led to the insurer's shift in the market rating from 2nd to 3rd place. At that only RGS Life encounters premiums' decrease against total market growth and the fact that life is the main market driver in general.
The main life product is investment life insurance (ILI), with its main sales channel - banks. In the first half year the share of ILI amounted to 61% of life GWP. RGS Life's ILI share in premiums is less than in case of other sector leaders and is 59%.
Due to the above mentioned termination of relations with OTKRYTIE Group the decrease of premiums of RGS Life is connected, according to the local market representatives, with absence of any banking sales channel, taking into consideration that banking sales channel is the main channel for life insurers. As the company's new General Director, Evgeniy GUREVICH, said "in order to improve the situation the company is actively increasing sales through agents counting on universal life insurance".