Boston, MA -- (SBWIRE) -- 07/16/2014 -- As of mid-2014, the main change that has occurred in Russia's insurance sector is that life premiums have been a lot stronger than we had been expecting: we will be revising our forecasts upwards in the coming weeks and months. In particular, Sberbank, the giant state-owned savings bank, appears to have had very good success in distribution of traditional life products through its own network. Many of the other leading Russian insurers have also reported strong growth in life premiums - thanks, in part, to exploitation of bancassurance relationships. This represents an important change.
Previously, households' and businesses' lack of understanding of life insurance, and lack of trust in the local groups, had severely constrained the development of the segment. Conversely, recent developments confirm our view that the present situation and prospects of the non-life segment are uninspiring. The segment continues to be dominated by compulsory medical expenses insurance (CMEI) and other compulsory lines. There is no obvious catalyst for an increase in non-life penetration from what are, by most standards, low levels. Even leading players face downwards pressure on prices and rates: this is particularly true in motor vehicle - related lines.
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There was a time when Russia's insurance sector was both large and rapidly growing. Sadly, that time is past. The main exception is the life segment, where savings bank Sberbank has emerged as a force to be reckoned with in bancassurance and where other leading Russian groups appear to be capturing market share from the foreign majors who had previously been dominant. The regulator has imposed new - and more stringent - capital requirements, which has contributed to the ongoing rationalisation of the insurance sector.
As of mid-2014, it remains easy to identify weaknesses in the Russian insurance sector. Thus far, much of the development of the industry has depended on the growth of compulsory lines. Compulsory...
The Russia Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Russia Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Russian insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Russia to test other views - a key input for successful budgeting and strategic business planning in Russia's insurance market.
- Target business opportunities and risks in Russia through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.
Business Environment Rankings
BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.
BMI Industry Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
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