Rosgosstrakh Zhizn is now completely revising its product line. A significant contraction of the life insurance market is expected in terms of investment insurance sales in 2022; a drop in fees might be 30-50%,” said Ivan Chubar, director of strategic analysis at IC Rosgosstrakh Zhizn.
Thanks to reasonable and consistent position of the Central Bank, life insurers have had more than sufficient reserves in recent years, noted Evgeny Gurevich, the Capital Life executive. Therefore, life insurers are ready to fully fulfill all their obligations. It is clear, however, that investment return depends on the situation on the market and the restrictions imposed by Western countries.
Capital Life expects an increase in the share of the agent channel in life insurance sales, primarily in endowment life insurance. The agent network of Capital Life with 7.5 thousand agents exceeds the total number of agent corps of the other four life insurers included in the top 5 in terms of the size of the agent network according to the Central Bank. “During the pandemic, when we have hired over 1,000 new employees, this is how it is now. We see an increase in the number of candidates and their interest in training and working as insurance agents. These can be both people with experience in selling financial products, and completely unexperienced, of any age and gender. The profession of insurance agent is very democratic,” they noted in Capital Life Insurance.
“Endowment is a mass insurance product. People choose the contribution amount convenient for them and plan savings for years to come. In case the premium cannot be paid for any reason, most insurance programs have the option of extension the term for premium payment,” said Evgeny Gurevich.
Life Capital launched additional investment strategies based on the securities of domestic companies. The company is adapting VHI programs to current international opportunities and forming more flexible programs for endowment life and accident insurance.
Rosbank Insurance continues to fulfill its obligations under the current investment and endowment life insurance agreements without any changes or restrictions. For example, the return on investment of up to 15% per annum under the contracts with a diversified ILI strategy ended in March 2022 was paid, said Irina Pavlova, a representative of Rosbank Insurance.
In the conditions of high volatility of exchange rates and introduced currency restrictions, Rosbank Insurance suspended the issuance of new investment life insurance contracts both in foreign currency and in rubles.
Credit life insurance fell following the reduction in lending. Investment and endowment insurance almost completely reset immediately after the well-known events, but they gradually returned to the level of sales before all events with the launch of new products, Oleg Vorobyev, a representative of UralSib Life, informed.
“Our clients will receive all guaranteed income. Market developments and impairment of asset value will not affect this. We will fulfill all our obligations. As for additional investment return, we also plan to make payments after the problem with the European regulator is resolved. While this issue is being resolved, we have temporarily suspended these payments, but as soon as the technical problems are eliminated, our clients will receive additional return on investment,” said the UralSib Life representative.
Source: https://www.asn-news.ru/news/79537
Photos are from open sources.
