Russian insurance market grows 15% in nine months

Insurance companies have reported that total premiums they received in the nine months of the year were above 885 billion rubles.

According to their reports, outperforming growth rates were seen in life insurance, where premiums grew almost 67% to total 147.5 billion rubles.

Compulsory motor third party liability insurance (OSAGO) payments were up almost 12% in the period, rising to 173 billion rubles. At the same time, their annualised paces of growth in the third quarter declined sharply, entering negative territory for the first time in a year and a half. This was triggered by the fading positive effect from a rise in insurance rates.

There was a 15% increase in the number of insurance contracts executed in the nine-month period, to 122.5 million. This comes as a result of the rebound in lending and stronger sales of accompanying insurance products, as well as the recent advance of fully packaged products (insurance programmes with pre-defined terms and conditions, risks and coverage) sold through banking channels.

Insurance indemnity in the nine months of the year was level with the same period last year, totalling 363.4 billion rubles. OSAGO settlements rose 39% and climbed above 120 billion rubles.