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How coronavirus has changed the demand for life insurance in Russia

Insurers have summarized preliminary work results for the past three months. The insurance market has undergone significant changes experiencing pressure of two powerful factors, fear of Russians for their lives, as well as loss or decline in income, writes Gazeta.Ru.
How coronavirus has changed the demand for life insurance in Russia

Such policies as StopKoronavirus, Antivirus and such-like are in demand, confirms Dmitry Kuznetsov, the Deputy General Director of Soglasiye insurance company. “People under 25 years of age are rarely interested in this type of insurance. Almost half (44%) of clients buying coronavirus policies are people aged 35-45,” says Kuznetsov.

However, men buy such policies more often, 62% of men versus 38% of women. Voluntary medical insurance (VHI) in May showed a 16% increase in sales compared to the same period last year, and life insurance showed a 4-fold increase, according to Soglasiye.

During the summer months, some growth in the VHI market is also possible compared to last summer. Due to transition of many people to remote work, they have time and opportunity to get to the nearest clinic and buy a policy, according to the All-Russian Union of Insurers.

The second factor, fear of losing a job or part of the income, is changing the insurance market even more dramatically. Every third (31%) Russian citizen is afraid of becoming unemployed, RPORC notes. Even without surveys, it is clear that income in recent months has gone negative, for example, according to the Higher School of Economics, in the second quarter people’s incomes could fall to 78.2% of their level in the second quarter of last year.

In order to survive and compensate for future losses in crisis economic conditions, insurers will have to finally create new unique insurance products. “The main growth point now lies in insurance, creation of sales systems based on neural networks,” said Anton Redko, founder of the Mustins.ru insurance platform.

Source: https://www.gazeta.ru/business/2020/06/13/13116157.shtml

Photos are from open sources.

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