Russian insurance market: 8.3% nominal GWP increase in 2017 supported by life insurance

According to the Russian Central Bank the local insurance market showed a marked increase in GWP terms (nominal, in national currency) by 8.3% if compared to 2016.

Life insurance has the biggest share - 25.9% of the total market. This segment increased by 53.7%, at that credit life insurance increased by 20.3%. Almost 9 out of 10 life insurance policies are sold through Russian credit institutions. The Central Bank believes that banks" interest can be easily explained by high fees: remuneration of credit institutions for sales of life insurance products in 2017 amounted to RUB 50.5 billion (EUR 0.73 billion), insurance products in total - RUB 96.9 billion (EUR 1.4 billion); banks" remuneration shares in GWP, received though them, reached 17.3% and 24.8% respectively.

As for the motor insurance class, despite the rise of new car sales mainly due to increase of the number of auto loans (25% more than in 2016) - MTPL GWP reduced by 5.2% against 2016. Although in 2017 compulsory MTPL online sales appeared, this sales channel produced only 12.8% of MTPL GWP with moderate increase by 11.9% against 2016. GWP of Motor Hull class reduced by 4.8%.

Volume of claims in 2017 increased by 0.8% against 2016. Of that MTPL claims amounted to RUB 175.5 billion (~EUR 2.55 billion), with increase by only 1.7% against 2016. Life insurance claims increased by 21.7%. The subclass "other life insurance" which included investment insurance, showed growth of GWP by 61.1%.

  • Exchange rate as at December 31, 2017: 1 EUR = 68.8668 RUB
The full version of article can be read in the forthcoming issue of the specialized publication "INSURANCE Profile Russia FY2017", will be officially launched on April 10th. 

The biannual bilingual publication (Russian and English) includes the FY2017 financial results of the insurance market, from GWP and mediated premiums to claims paid, but also aspects such as reinsurance statistical data, the insurance companies' GWP portfolios etc., as well as the status of the Russian reinsurance market and perspectives of reinsurance market alongside of the new partner - RNRC: statistical data and market opinions.

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