Insurance

Russian insurance market grew in 2016

Earlier media wrote that the Russian insurance market has lost about a quarter of the companies-players (at the end of December they counted less than 260 companies instead of 330 at the beginning of the year). The year was challenging, but it eventually showed a good result. According to data of the Russian Union of insurers (VSS) in December 2016 announced by its President Igor Jurgens, the share of the insurance market in the gross domestic product (GDP) of the country increased from 1.2% to 1.4%.

The number of insurance contracts concluded in 2016 rose by 29% to 167.8 billion rubles. Insurers during this time received 1.2 trillion rubles of contributions (+15.3% growth by 2015), and carried out insurance payment in the amount of 505.8 billion rubles. This was reported in the press release of the Bank of Russia of February 28, 2017.

The main type of insurance in 2016 was life insurance, which made up 18.3% of the total. The share of auto insurance, by contrast, decreased to 34.3%. The voluntary insurance CASCO fell to -8.8%, and the mandatory “loss-making” insurance grew by 7.2%. Payments on OSAGO increased by 40%, amounting to 173 billion rubles.

An important event of 2016 was the creation of National reinsurance company (NRC), which since October 12, 2016, has received a reinsurance license. After 01 January 2017, insurance companies are required to give the NRC a 10% of risk.

Sources:

Central bank of Russia, Ria