Expert RA

Expert RA begins to study the Russian insurance market in the first half of 2008.

July 18, 2008

The Expert RA rating agency announces the beginning of data collection to study the RF insurance market in the first half of 2008.

In 2007 Russian insurers collected 486 bln rubles through direct insurance (without MMI), which exceeded 2006 by 79 bln rubles or 19.5%. Previous Expert RA study of the Russian insurance market put in the lead road transport insurance (collections – 153.0 bln rubles), OSAGO (72.5 bln rubles) and insurance of legal entities’ property from fire and other risks (71.7 bln rubles).

According to Expert RA, the largest 2007 increment comparing with 2006 was shown by space risk insurance (92.8%), life insurance (42.0%) and insurance of individual property (36.0%). Insurance potential for coming years: road transport (due to increased sales of new cars), life insurance, insurance of individual property (significant increase in coming years), OPO insurance (only if the law “On mandatory insurance of civil responsibility for harm during exploitation of a dangerous object” is adopted), and space risk insurance (due to Federal space program development).

2007 saw consistent concentration of collections at the competitive segments of the Russian insurance market (motor transport insurance, VMI) and declined concentration in segments poorly covered by large universal insurers (insurance of individual property, life insurance). In 2007 the top-5 leaders at the Russian insurance market increased their share from 36.8 to 39.4%. In 2008 it may exceed 40%.

A new analysis will be published in September 2008 and show changes in the market situation within the last six months. The analysis will present lists of the largest insurance companies.