Research and Markets (http://www.researchandmarkets.com/reports/c90719)
has announced the addition of Russia Insurance Report Q1 2008 to their
offering.
This report differs from its predecessors in that it includes BMI’s
Insurance Business Environment Rating (IBER). The rating brings together
a number of pieces of relevant quantitative data, together with BMI’s
Country Risk Rating (CRR). It is now much easier to consider the
business environment for the insurance sector in any one country
relative to the business environment for other industries in that
country that are surveyed by BMI, and the business environment for the
insurance sector in other countries.
Russia’s IBER is 60.4. Relative to other
countries in Central and Eastern Europe, it is a moderately attractive
insurance market for foreign insurers. Within the region, Russia stands
out for the current size of the non-life segment and the likely absolute
growth in non-life premiums. The economic outlook is germane. Government
policies are likely to remain constant over the long term. However, the
IBER is held back by the underdevelopment of the life segment and the
financial infrastructure. It is also held back by the legal framework
and bureaucracy in Russia.
Over the forecast period, we anticipate that non-life premiums will grow
by 20% annually in local currency terms and by 25% in US dollar terms.
Life premiums are expected to increase by 22% annually in local currency
terms and by 28% in US dollar terms. The key drivers of growth in the
non-life segment in 2007-2012 are the anticipated rise in nominal GDP
from around US$1,212bn to US$2,872bn and an expected increase in
non-life penetration from 2.32% of GDP to 3.00%. The key driver of
growth in the life segment is the envisaged rise in life density from a
miniscule US$9 per capita in 2007 to US$30 per capita in 2012. Russia’s
total population is declining.
The competitive landscape, in both the non-life and the life segment, is
fragmented. Both segments are open to participation by foreign groups,
although foreigners are more important in the life than in the non-life
segment. Even Rosgosstrakh, the former domestic state-owned monopoly
insurer of the Soviet Union and still the largest player overall,
appears to have only a single-digit market share. The number of very
small insurers - some of them effectively captives - is still in the
hundreds, but is falling steadily.
Russia’s non-life segment is relatively new,
but has clearly moved beyond Compulsory Third Party Motor Liability
(CTPML) business which, in press and official reports, is sometimes
referred to by its Russian initials OSAGO. Unusually, Compulsory Medical
Expenses Insurance (CMEI) is one of the largest lines, and accounts for
just over one third of the non-life segment (and, therefore, effectively
the entire insurance sector). Voluntary property insurance - including
voluntary motor insurance (CASCO) - accounts for another third of total
premiums. By contrast, CTPML is less than one tenth of the total.
The main weakness of Russia’s insurance sector
is that Russians hardly use life insurance for long-term savings. To the
extent that they do, they appear not to trust local groups: major
foreign companies appear to have a far stronger position in the life
segment than they do in the non-life segment.
The Sector At A Glance
Table: Overview Of Russia’s Insurance Sector
Key Insights On Russia’s Insurance Sector
SWOT Analysis
Hungary Industry SWOT
Key Features Of This Report
Latest News
Projections And Forecasts
Table: Premiums - Historical Data And Forecasts, 2006-2012
Projections And Drivers Of Growth
Table: Growth Drivers
Country Update
Macroeconomic Outlook
Table: Russia - Economic Activity
Political Outlook
Insurance Business Environment Rating
Table: Russia - Insurance Business Environment Indicators
Table: Central And Eastern Europe Insurance Business Environment Rankings
Regional Context
Table: Non-Life Premiums In A Regional Context, 2007
Table: Life Premiums In A Regional Context, 2007
Table: Comparison Of Major Lines As % Of Non-Life Premiums, 2006
Analysis Of Competitive Conditions
Russia - Non-Life Segment
Table: Presence Of Cross-Border Insurers, Non-Life, Central And Eastern
Europe
Russia - Life Segment
Table: Presence Of Cross-Border Insurers, Life, Central And Eastern
Europe
Methodology
Basis Of Projections
Insurance Business Environment Rating
Table: Insurance Business Environment Indicators And Rationale
Table: Weighting Of Indicators
For more information visit http://www.researchandmarkets.com/reports/c90719.
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