Russian insurance market is one of the fastest growing markets in the world. It has been rapidly expanding over the past few years on the back of regulatory developments, government support, economic growth and rising income level, says our new research report, “Russian Insurance Industry Forecast to 2012”. The Russian insurance market will continue to maintain its growth pace in coming years.
According to our report, there will be a limited demand for insurance products in the short term because of global economic crisis, but the market holds strong growth potential for the medium term as real income begins to recover. As the penetration rate of insurance is still low as compared to more developed economies, the market represents enormous growth opportunities for insurance players. Moreover, the financial crisis will have some positive impact on the sector as unqualified and undercapitalized players will fail, leaving those that remain more transparent and customer friendly.
The total amount of premiums collected grew at a CAGR of around 24.5% between 2005 and 2008. It is expected that the introduction of laws on compulsory property insurance will boost the overall insurance market in future.
Anticipating the upward movement in future, we have done a comprehensive analysis of the Russian insurance market. The report covers various segments of the insurance market and gives detailed information of them, such as life-insurance, non-life insurance, premiums collected, premiums paid, voluntary insurance, compulsory insurance, distribution network and reinsurance.
Our research also highlights the factors which are responsible for growth in the Russian insurance market. It says that the rising real income of the Russian population is the main driver behind the growth. This trend, coupled with the government’s initiatives, is playing a critical role in promoting reforms and competitiveness.
With immense growth potential, our research foresees enormous opportunities for various market players like Rosgosstrakh, Ingosstrakh and Reso-Garantia. Moreover, the overall prospects for foreign investors are good. Foreign insurance companies have a number of advantages compared with local insurers, including higher credibility with customers, solvency supported by larger capital resources, and experience with best international practices.