bs-preloader__icon
ru kz en

Endowment life insurance has become the flagship of the Russian insurance market

The life insurance market coped with the challenges of the pandemic demonstrating growth at the end of 2020. The market leader strengthens its role with saving products, which usually become part of the diversified portfolio of private investors, writes the Insurance Today portal.
Endowment life insurance has become the flagship of the Russian insurance market

Despite the last year's lockdown and restrictions that had a major impact on the entire economy of the country, life insurers, according to the ARIA, collected more than 450 billion rubles in premiums. The annual market growth is 4.1%.

These figures are largely due to the growth of captive insurers through the support of their own banks. The share of premiums of non-captive insurers decreased from 15.1% in 2019 to 13.9% in 2020. This trend will continue in 2021, including through M&A transactions, for example, a recent takeover of MetLife insurance company by Sovcombank.

Besides, large state-owned banks, that had not yet had insurance partners, identified for themselves a pool of market-based insurance companies which they are most interested in working with. It is likely that this might lead to the captivization of these insurers in the future, which will further strengthen the share of such companies.

The endowment life insurance segment (ULI) shows the best dynamics, it has grown by 24.3% over the year, from 109.5 billion rubles in 2019 to 136.1 billion rubles in 2020. This secures it a status of a market driver, which has previously belonged to investment life insurance (ILI). ILI, however, showed a slight decrease from 196.9 billion rubles to 188.3 billion rubles (-4.4%) last year. This is partly due to the flow of funds of the population from ILI to endowment.

Life insurers’ payouts in 2020 grew much more than premiums, almost one and a half times compared to 2019, from 141 to 211 billion rubles. The increase is largely due to the massive completion of previously concluded 3- and 5-year ILI agreements.

In addition to the accumulative function, more and more life insurance programs include service components, such as free health check-ups or telemedicine consultations. According to the Central Bank, these options can contribute to the life insurance growth of in 2021 by increasing people’s attention to their health.

Source: https://www.insur-info.ru/comments/1429/

Photos are from open sources.  

Share
read also
State Annuity Insurance Company will be put up for sale
State Annuity Insurance Company will be put up for sale

The tender is scheduled for December 28, 2018, minfin.gov.kz has reported today. Star...

Asian Insurers Change Investment Strategies
Asian Insurers Change Investment Strategies

As Asian insurance assets expand due to demographic shifts and growing consumer appet...

How to deal with the retirement gender gap
How to deal with the retirement gender gap

When it comes to the adequacy of retirement savings, women find themselves in a losin...

The most interesting materials of the site you have in the mail! Subscribe to the newsletter.

ASK A QUESTION TO THE EXPERT
ASK A QUESTION TO THE EXPERT
Submit your application