Over the past few years, the Russian Insurance Market has seen an increase in its gross premium, mainly in life insurance. Ways adopted by Russian insurance industries to boost their insurer’s portfolio were focussed client retention, new product development, new sales channels. The increase in premium was observed in the life insurance sector, especially in the segment of unit-linked insurance policies. The life insurance market is seeking attention from new players, regulators, and media. It is expected that by 2022, the share of life insurance premiums in the market might consume about half of the whole volume of insurance premiums. Various reasons for this include low demand for the bank for deposits and declining interest rates. The insurance firms are witnessing healthy profitable levels. Future forecasts expect active growth in the life insurance segment. In the non-life insurance sector, growth, especially in motor insurance, is expected to be seen with growing technology and new innovation in insurance products since these have been successful in foreign markets.
These new technological improvements are said to reduce costs like administrative and acquisition costs for the companies. Despite a few challenges in the Russian economy, insurers were successful in steering through without major impact on their operations. In terms of legislation, insurers preferred switching to a new industry standard. On account of the new industry standards and the complexity surrounding its implications, many insurers observe expect it to have a positive influence on their operations. Many insurers feel neutral about creating a new reinsurance company and switching to a new chart of account. The growing insurance market is expected to have a positive impact on the credit profiles of the insurers, although, in certain segments, the risk might bring down the positive effect.
Ken Research’s Governance, Risk and Compliance-The Russian Insurance Industry provides an overview of the insurance regulatory framework in Russia. It gives the latest key changes and changes expected in the country’s insurance regulatory framework. The report provides key regulations and market practices related to different types of the insurance product in the country and rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in Russia. The key parameters including licensing requirements permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations and details of the tax and legal systems in the country are detailed in the report.
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Ankur Gupta, Head Marketing & Communications