RUSSIAN INSURANCE MARKET: FORWARD TO THE NEW QUALITY

IN THE NEW REALITY

Andrey YuryevPresident, National Union of Liability Insurers &Vice-President, All-Russian Insurance Association

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The sum of insurance premiums amounted to 988 billion Roubles in 2014 (excluding compulsory health insurance) (an increase by 9% as compared to 2013 and in 2013 – an increase by 11.5 % as compared to 2012).

INSURANCE PREMIUMS

988 Bln

The sum of insurance payments amounted to 472 billion Roubles in 2014 (an increase by 12% as compared to 2013 while in 2013 – an increase by 13% as compared to 2012).

INSURANCE PAYMENTS

472 Bln

INSURANCE PREMIUMS AND INSURANCE PAYMENTS

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There were 404 insurance companies by the end of 2014 (a decrease by 4% in comparison with 2013 while in 2013 – a decrease by 10 % in comparison with 2012).

INSURANCE COMPANIES

404

INSURANCE ORGANISATIONS

TOP 10COMPANIES

59%OTHERCOMPANIES

41%

In 2014, the top 10 insurance companies wrote 59% of the national insurance premium.

INSHURANCE PREMIUM

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The aggregated authorised capital of insurance companies amounted to 220 billion Roubles in 2014 (an increase by 5% in comparison with 2013 while in 2013 – an increase by 6 % in comparison with 2012).

AUTHORIZED CAPITAL OF INSURANCE ORGANISATIONS

AGGREGATED AUTHORIZED

CAPITAL

220 Bln

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Market growth at the level of 2014 (an increase by 7 % to 10 %);

BASICSCENARIO

Stagnation in the market growth (an increase by 0% to 3% as compared to 2014) provided new sanctions are imposed, CMTPL tariffs are not raised and reinsurance is “governmentalised”.

NEGATIVESCENARIO

INSURANCE IN 2015

Two development scenarios:

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The Government of the Russian Federation adopted «The strategy for developing the insurance market until 2020». The strategy is being implemented since 2013.

2020

The Central Bank of the Russian Federation – was set up and is operating as the sole regulatory authority in the financial market, since 2013.

SPECIFICS OF THE RUSSIAN INSURANCE MARKET

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WORKING RELATIONSHIP OF THE ALL-RUSSIAN INSURANCE ASSOCIATION

AND THE CENTRAL BANK OF THE RUSSIAN FEDERATION

• Switching to new bookkeeping standards based on IFRS, from 2017;

• Quality control over the insurance companies’ assets;

• Introduction of specialized depositaries;

• Readjustment, bankruptcy, transfer of insurance and reinsurance portfolios;

• Assistance in the adoption of socially oriented insurance legislation.

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• Development and implementation of internal insurance standards and financial stability standards;

• Improvement of financial awareness and protection of consumer’s rights within insurance services;

• Digitalization of insurance;

• Cooperation with the judicial system;

• Improvement of reinsurance (development of new classes).

ALL-RUSSIAN INSURANCE ASSOCIATION ACTIVITIES

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To remove external risks in reinsurance;

To keep up positive development dynamics of the national insurance in implementing the primary purpose – rights protection of citizens and insurance services consumers.

MAIN CURRENT OBJECTIVES