Russia: Market's modernization through digitalization and consumer protection are the Central Bank's top priorities for the insurance sector

"We consider the market's cleaning process has come to an end and we are having a more mature market now," Sergey SHVETSOV, First Vice President, Central Bank, Russian Federation stated today at the Russian Insurance Summit 2017, in Saint-Petersburg.

As far as the market perspectives are concerned, he said that "new IT products and distribution channels through InsurTechs are the future, therefore we should adapt accordingly. Also, consumer protection is one of the key focuses of the Russian Central Bank, in respect of insurance market future."

Vladimir CHISTYUHIN, Vice President, Central Bank has completed the market's watchdog vision on the near future's priorities. First of all, he stressed out that "Russia has begun the implementation of the Solvency II supervision system which should be fully functional by 2022; this implementation calendar will be published this autumn." Besides aligning its supervisory system with the EU legislation, he has also mentioned the main lines of action in operational terms:
  • "One one of the main objectives for the following period is to liberalize the MTPL market, to increase the consumer confidence in the insurance products.
  • There is a lot to do in order to implement the new InsurTechs on the market, but this is the future and the introduction of the mandatory electronic issuance of the MTPL policies is a step in this regard.
  • Telematics and Internet of Things are the main investment targets in the future."
In the first quarter the Russian market rose by 5.2%, to RUR 316,3 billion in GWP terms, the main driver being life insurance that increased by 44%. One of the key trends was the increase in the claims ratio for MTPL, which reached to 106%.

The Russian Insurance Summit organized by the All Russian Insurance Association is the most important annual international insurance event on the Russian insurance market, gathering more than 200 participants. XPRIMM Publication is a traditional Media Partner of the event. The magazine Insurance Profile Russia was available for the Summit's participants.

More about the Russian Insurance Summit 2017 at: www.insuranceconference.ru



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