Insurance

The Russian insurance market represents huge opportunities for development and growth. Moscow is included into five leading regions on amount of insurance service users (25,3 %) and leading in accordance with real estate insurance programs, pension insurance and KASKO (auto insurance).

According to National Agency of Financial Researches (NAFI), to the beginning 2008 is noted significant growth in citizen amount, using insurances. Almost each second Russian by this time has taken advantage of insurance services.

The basic directions for insurance business growth remain the mortgage   and motor third-party liability insurance. So, according to the Bank of Russia in 2007 hypothecary credit growth has made about 60 %. Together with crediting on security the habitation growth the hypothecary insurance volumes have increased as well.

To 2008 there was a sharp expansion of the Russian auto insurance market. The quantity of owners of policies of voluntary auto insurance in Russia as a whole makes 18.3 %. (VHI and MTPL insurance often carry to obligatory insurance kinds). The automobile owner quantities who have issued MTPL insurance policies are constantly increasing. At the beginning 2008 a contingent issued KASKO has shown 6 % growth.

Contingent of citizens insured the property at the beginning 2008 has shown 9% growth. The share of the Russians who have issued paid voluntary health insurance has considerably increased.

Development of the tourist service market has caused growth of the market of insurance on trips and travel.

A significant decrease in user amounts of insurance service relating to "antirecessionary" insurance kinds speaks first of all about improvement upon social moods the general well-being growth of the population, economic stability and predictability of political events.

The certain contingent of the population uses simultaneously several kinds of insurance services: two kinds — about 13 % of the population, three and more — about 5 %.

Amendments to the law "About the organization of insurance business" have come into effect. It assumes precise specialization of operators. The overwhelming majority of the Russian insurance companies have concentrated on property insurance while life insurance maintenance is required greater resources. The world insurance companies are ready to occupy an empty niche in Russia it is guarantees them up to 20 % annual growth while insurance services growth rates in the Central Europe make 3—5 % a year.

The foreign insurance companies make active buying-up of the Russian actives. In 2007 Allianz SE and Zurich Financial Services have purchased actives of the largest players — companies ROSNO and NASTA.

According to a number of opinions, arrival of large foreign insurers is positive enough to cause strengthening competition which will lead to service quality improvement and expansion the international service standards.