Insurance market growth almost quadruples

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In Q1 2018, the total amount of insurance premiums reached 377.4 billion rubles, or 19.3% more than in the same period of the previous year, according to the statistics published on the Bank of Russia’s website.

The insurance growth rate was much higher than the year before (5.3%). Life insurance still makes the most considerable contribution (52.4%) to the market growth. However, such segments as insurance of other property of legal entities (14%), health and accident insurance (11.6%) and voluntary health insurance (6.5%) also added to the positive dynamics in the reporting period.

In life insurance, premiums were up 53.6% reaching 91.9 billion rubles. This insurance type accounted for almost 25% of all premiums. Life insurance with the participation of the policy holder in the investment income of the insurer is among the leaders of this segment with the premium amount growing 67% to 66.5 billion rubles. Credit life insurance premiums grew 33.3% to 10.2 billion rubles; pension life insurance was up only 4.4% at 0.3 billion rubles.

A prominent increase in insurance premiums was observed in such segments as insurance of other property of legal entities (33.1%) and health and accident insurance (28.8%). In voluntary health insurance, the premium growth rate slowed down slightly in Q1 (5.8%) vs. last year (10.9%).

In motor vehicle insurance, premiums continued to decline. OSAGO premiums were down 4.6% to 46 billion rubles; the number of new agreements decreased as well (1.3%). As a result, the average insurance policy value was 5,800 rubles (vs. 6,000 rubles a year ago). The popularisation of digital OSAGO can be viewed as the main trend in the OSAGO market. The share of insurance premiums under agreements concluded over the Internet rose in Q1 by 19.3 percentage points vs. the same period of the previous year reaching 25.6% of the total amount of premiums in this segment. In motor own damage, insurance premiums demonstrated a slight decline (0.1%) with the payment amount reaching 36.7 billion rubles.

Total payouts dropped by 11.7% in Q1 and totalled 109.1 billion rubles. In life insurance, payouts rose 54.3% (7.34 billion rubles), which was to be expected due to the termination of agreements where a significant increase in premiums was observed.

15 June 2018

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