"Expert RA"

Expert RA has studied the audit-consulting market and made a corresponding rating for 2007

March, 25th, 2008

“Retail insurance today: what does a consumer choose?” conference took place in Moscow, March 24, organized by the Expert Ra rating agency and the National agency for financial research (NAFR).

Pavel Samiev, Expert RA, director of department, rating of financial institutions, has summed up the results of a study “Retail insurance market: evolution of demand”: “For the first time in the modern history of Russia the insurance retail by-passed the corporate insurance on the basis of purposeful demand. From 2005 to 2007 the retail insurance volumes were almost doubled and in 2007 premiums amounted to 262.9 bln rubles. The retail insurance market share went up from 39.2 (2005) to 54.9 (2007)”.

“The most popular type of retail insurance in Russia is obligatory motor insurance (OSAGO). In case of voluntary insurance real estate, accidents and auto damage or theft (casco) are in the lead”, – Olga Kuzina, NAFR general director, said at the press-conference.

According to Vitaly Kniaginichev from Ingosstrakh complex insurance department, Russia has finally reached a classic European ratio between casco and OSAGO, which is not the case with the property share in insuring individuals, the share being too low.

The most recognizable Russian insurers are Rosgosstrakh (54.6%), ROSNO (20.7%) and Ingosstrakh (19.8%). The same companies are also the most trusted ones.

“Presently one of the key problems at the retail market is poor infrastructure – insurers can not provide their clients with proper quality and scale”, – says Andrey Krupnov, Rossyia insurance company, head of department of strategic planning and marketing.

Pavel Samiev says: “Reduced concentration of contributions in 2005-2007 at the retail market (the top-ten insurers share in cumulative premiums went down from 53.1 to 43.8%) implies rigorous competition and inevitable increase of losses at the market. In the near future insurers will undoubtedly face the need to work over alternative channels of distributing insurance products and increasing the business profitability”.