Growth of the insurance market decelerated in the second quarter to 7.5%
Growth of the insurance market decelerated in the second quarter to 7.5% against the same period a year earlier with total insurance payments standing at 354.4 billion rubles. Rising life insurance payments remains the key market growth driver according to the Review of Insurers’ Key Indicators.
The second quarter saw life insurance payments rising to 32.1 billion rubles. However, the reduction in insurance premiums in mandatory types of insurance limited the rise in overall payments to 24.7 billion compared to the second quarter last year. Both health/accident insurance and voluntary health insurance posted positive figures driven by expansion in lending and inflation of the cost of medical services respectively.
Motor own damage insurance premiums turned in positive Q2 performance for the first time in several years as demand for cars mounted. At the same time, the average premium showed a persistent decline of 17% to 34.8 thousand rubles coming as a result of the development of programmes with limited lists of risks or franchise.
Banks remain by far the biggest sales channel, accounting for almost 50% of all premiums under intermediated contracts. Life insurance and health/accident insurance accounted for the most policy sales by credit institutions.
Q2 payouts dropped 16% on the same period in 2017 to 126.7 billion rubles.
Insurance sector profits in the first half rose 44% to total upwards of 110 billion rubles on the back of the positive result posted by non-life insurance operations and investment profits.
29 November 2018