Life insurance grows fastest of all insurance sectors

Life insurance, with strongest growth (+44.4%) in the first quarter, moved ahead of OSAGO (mandatory vehicle insurance) by total insurance premiums (59.8 billion rubles). Volumes of earnings went up 5.2% overall to a total of 316.3 billion rubles in the first quarter, as follows from insurers’ financial reports.

The accounting period saw OSAGO payments shrink 3.5%, to 48.2 billion rubles; with the positive effects of higher rates having run their course, the segment now lacks any incentives for growth. Also, a substantial rise in OSAGO web-sales was noted. 2017 Q1 internet sales accounted for 6.3% of insurance premiums, in stark contrast to the 2016 results (under 1%).

Beyond life insurance, good performance was posted by private property insurance, medical insurance and health and accident insurance. Premiums, however, contracted in the sectors of corporate property and motor own damage insurance.

The number of insurance contracts executed in 2017 Q1 rose more than a third from the same period a year ago and stood at 37.6 million. This comes largely as a result of an increased number of health and accident insurance (+48.4%) and private property insurance (+47.7%) contracts. There was a 2.7% increase in the number of OSAGO contracts.

Payments of insurance indemnity in 2017 Q1 were up 5.2%, amounting to 123.5 billion rubles. The payouts grew strongest in OSAGO where they were up 46.4% to reach 52.4 billion rubles. In core voluntary insurance sectors, payouts were growing in life insurance and private property insurance.  Payouts in motor own damage were down 18.9% to 21 billion rubles.