Insurance market growth slows down in 2021 Q3
In 2021 Q3, the growth rate of the insurance market decreased to 16.5%. This is more than two times less than in 2021 Q2 when the rise was driven by the 2020 Q2 low base effect resulting from restrictions. Nonetheless, insurance premium payments in all main segments made over July—September 2021 exceeded the level of last year, totalling 461.9 billion rubles. These are the findings given in the Review of Key Indicators of Insurers.
As before, the main contributor was credit life insurance as the demand for consumer and mortgage loans remained high. Over 2021 Q3, premiums in borrowers’ life insurance increased by nearly a third to 40.1 billion rubles and those in accident and health insurance rose by 22% to 67.8 billion rubles.
There was also a surge in premium payments under endowment and investment life insurance contracts. This trend was supported by individuals’ demand for financial instruments being an alternative to bank deposits and the active promotion of related programmes through banks. The motor hull insurance market expanded as well, largely as a result of higher insurance policy prices spurred by growing car and component prices. The voluntary medical insurance segment continued to recover, while still staying considerably below pre-crisis readings.
In 2021 Q3, insurance payments increased across all main insurance types, except corporate property insurance, totalling 203.0 billion rubles.
Russian insurers’ profit for the first nine months of 2021 declined to 189.7 billion rubles following the negative currency revaluation of assets amid the ruble’s strengthening. Eventually, insurers’ profitability also decreased, although remaining high (return on capital — 22.8%, and return on assets — 5.2%).