MARKET EXPERTS: INSURERS IN RUSSIA WILL NOTICEABLY DECREASE

The insurance market may significantly thin out in the next few years. This is evidenced by the data shared by market participants. According to experts, about a third of insurance companies may leave the market due to strict requirements from the authorities and low profitability. It is unlikely that this will greatly affect the lives of ordinary citizens, but for organizations, the choice of an insurer will be greatly reduced.

According to Kommersant, which conducted an expert survey, 13 firms left the market last year. At the moment, 146 licensed insurance organizations are still operating in Russia. At the same time, if in three years the regulator has deprived 27 legal entities of their licenses, this year only one firm remained without permission.

The primary motive for leaving the market for many firms may be a small return on entrepreneurial activity.

Banking organizations are imposing increasingly stringent requirements on insurers related to the rating and indicators of financial stability.

The legislation requires life insurers to increase the size of their authorized capital to 450 million rubles in 2022. For classic insurers, the minimum threshold will be 300 million rubles. The initiative to postpone the date of entry of this norm for another year was supported by the Central Bank, but the regulator does not plan other support measures. At the moment, according to experts, more than 10 firms do not fit these criteria.

Respondents' opinions agree that the main reduction in the market may occur due to a reduction in the number of companies engaged in voluntary insurance. First of all, we are talking about car insurance (CASCO currently occupies about 12% of the insurance market), as well as life insurance (30%) and accident insurance (15%).

According to Alexey Yanin, representing the Expert RA agency, the number of insurers may be reduced by 20-30 organizations representing the lower third of the rating.

Basically, small firms can be attributed to them.

The survey also notes that the transformation of the market is carried out in the context of the crisis in the field of geopolitics. Western insurers are stopping their business in Russia. Subsidiaries of Societe Generale, Allianz SE and Zurich Insurance Group Corporation have already announced their withdrawal from the market.

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