Insurance market grows by more than one-third in Q2
Insurance premiums totalled 434.4 billion rubles over the period, exceeding last year's and pre-coronavirus levels. The number, coming as a result of low activity in 2020 when most restrictive measures were in place, was further helped by the accelerated growth of premiums in core types of insurance. The trends are reported in the Review of Key Indicators of Insurers.
As demand for household loans rose, life insurance premiums were up 2.2 times in Q2 to 35.2 billion rubles, and health and accident insurance premiums grew 1.8 times to 69.8 billion rubles. Expanding car loans and increased prices of vehicles drove 34.3% growth in the car insurance market that totalled 48.6 billion rubles.
Sustainably low deposit rates supported individual consumers’ interest in long-term life insurance as an alternative to deposits. Growing appeal of a healthy lifestyle and the drive to prevent various diseases among individuals and businesses incentivised the advancement of medical services provided by insurers, both under voluntary medical insurance agreements and as add-ons to life insurance programmes.
Payouts under insurance agreements were up 45.2% to 199.2 billion rubles, tracking trends in insurance events that were back to their normal pre-pandemic levels. The rise was also helped by ongoing growth in investment life insurance payouts.
As of the end of H1, insurers’ profits dropped 18.6% to 121.3 billion rubles. Profit margins in the insurance market declined, too, but remained high at 24.5%.