Russia Insurance Market Intelligence: 2011 Edition
Russia is the world’s 19th largest insurance market in terms of gross written premium. The insurance industry contributes 2.5% to the country’s GDP. One of the major factors driving growth of the Russian insurance sector is the voluntary insurance policies that have grown at a substantial rate over the years. In fact, the premiums collected by companies in terms of voluntary insurance have registered a significant growth.
However, the compulsory health and motor third-party liability (MTPL) insurance continue to account for a large share of the market as compared to the voluntary life businesses. Apart from the compulsory MTPL, the property insurance has also boosted the growth of the non-life business in the country. There are two major mandatory insurances in Russia, mandatory health insurance (OMS) and mandatory motor third party insurance (OSAGO). The early excitement of the insurance companies over OSAGO has been declining recently as more and more inefficiencies of this product have been evident. Nevertheless, there is ample potential in Russia for OSAGO that would drive its insurance industry in the years to come.
The market share of life insurance segment of Russia is very low and it is decreasing consistently. The insurance market of Russia remained highly fragmented in 2009, with about 800 insurance companies jockeying for market share.
However, the compulsory health and motor third-party liability (MTPL) insurance continue to account for a large share of the market as compared to the voluntary life businesses. Apart from the compulsory MTPL, the property insurance has also boosted the growth of the non-life business in the country. There are two major mandatory insurances in Russia, mandatory health insurance (OMS) and mandatory motor third party insurance (OSAGO). The early excitement of the insurance companies over OSAGO has been declining recently as more and more inefficiencies of this product have been evident. Nevertheless, there is ample potential in Russia for OSAGO that would drive its insurance industry in the years to come.
The market share of life insurance segment of Russia is very low and it is decreasing consistently. The insurance market of Russia remained highly fragmented in 2009, with about 800 insurance companies jockeying for market share.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Stabilized Russian Economy; development of Market-Oriented Policies with the Collapse of the Soviet Union
1.1.2 Classified into two segments: life and non-life business
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Growth in compulsory health insurance (OMI) premiums
1.2.1.2 Rise in insurance industry earned premiums in 2009
1.2.2 Market Segments
1.2.2.1 Compulsory health & MTPL insurance continue to account for a large share
1.2.2.2 Adverse Effect of Economy Slowdown on Life and Accident Segments
1.2.2.3 Awareness created demand for health insurance policies
1.2.3 Market Density & Penetration
1.2.3.1 Consistent rise in insurance density over 2002-2009
1.2.3.2 Low insurance penetration rate compared to other developed regions
1.2.4 Market Share
1.2.4.1 Highly fragmented nature of insurance sector; consolidation continues
1.2.4.2 RGS as market leader in insurance market
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Amendment in the federal law on OSAGO
Government approved conditions for allowing agreements between insurers
Almeda Merged ROSNO-MS
Regulator Approved MetLife to Acquire Alico
Coface: first international credit insurer in Russia
Uniqa Entered Russian Life Market
2.2 Market Drivers
2.2.1. Growing GDP
2.2.2. Expanding Mandatory Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Improved services and distribution channels likely to improve demand for insurance products
4.2 Property, motor, legal and financial risks driving non-life insurance market
1.1 Industry Structure
1.1.1 Stabilized Russian Economy; development of Market-Oriented Policies with the Collapse of the Soviet Union
1.1.2 Classified into two segments: life and non-life business
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Growth in compulsory health insurance (OMI) premiums
1.2.1.2 Rise in insurance industry earned premiums in 2009
1.2.2 Market Segments
1.2.2.1 Compulsory health & MTPL insurance continue to account for a large share
1.2.2.2 Adverse Effect of Economy Slowdown on Life and Accident Segments
1.2.2.3 Awareness created demand for health insurance policies
1.2.3 Market Density & Penetration
1.2.3.1 Consistent rise in insurance density over 2002-2009
1.2.3.2 Low insurance penetration rate compared to other developed regions
1.2.4 Market Share
1.2.4.1 Highly fragmented nature of insurance sector; consolidation continues
1.2.4.2 RGS as market leader in insurance market
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Amendment in the federal law on OSAGO
Government approved conditions for allowing agreements between insurers
Almeda Merged ROSNO-MS
Regulator Approved MetLife to Acquire Alico
Coface: first international credit insurer in Russia
Uniqa Entered Russian Life Market
2.2 Market Drivers
2.2.1. Growing GDP
2.2.2. Expanding Mandatory Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Improved services and distribution channels likely to improve demand for insurance products
4.2 Property, motor, legal and financial risks driving non-life insurance market
LIST OF CHARTS:
Annual Premium – Russian Insurance Industry: 2002-2009
Russia Insurance Premium Share (%) by Segment: 2009
Russia Insurance Premium by Segment: 2002-2009
Russia Insurance Premium Share by Segment: 2009
Russia Property Insurance Premium by Segment: 2009
Russia Personal Insurance Premium by Segment: 2009
Russia Voluntary Liability Insurance Premium by Segment: 2009
Russia Insurance Density: 2002 – 2009
Russia Insurance Penetration: 2002 – 2009
Russia: Major Insurer’s Market Share: 2009
GDP Growth of Russia: 2002 – 2009
Russia: CMTPL Insurance Premium and Claims: 2003 – 2009
Forecast: Russian Insurance Industry: 2009A - 2013F
Forecast: Russian Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – Russian Insurance Industry: 2002-2009
Russia Insurance Premium Share (%) by Segment: 2009
Russia Insurance Premium by Segment: 2002-2009
Russia Insurance Premium Share by Segment: 2009
Russia Property Insurance Premium by Segment: 2009
Russia Personal Insurance Premium by Segment: 2009
Russia Voluntary Liability Insurance Premium by Segment: 2009
Russia Insurance Density: 2002 – 2009
Russia Insurance Penetration: 2002 – 2009
Russia: Major Insurer’s Market Share: 2009
GDP Growth of Russia: 2002 – 2009
Russia: CMTPL Insurance Premium and Claims: 2003 – 2009
Forecast: Russian Insurance Industry: 2009A - 2013F
Forecast: Russian Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Comparison of Mandatory and Compulsory Insurance Premiums: Russia: 2005-2009
Key Macroeconomic Indicators: 2009A – 2014F
Comparison of Mandatory and Compulsory Insurance Premiums: Russia: 2005-2009
Key Macroeconomic Indicators: 2009A – 2014F
