bs-preloader__icon
ru kz en

Russian life insurers are moving to the yuan

Foreign currency life insurance programs have always been in great demand among Russians. Using such tools has become too risky or simply impossible in 2022. This shifted the market’s focus towards alternative currencies and, above all, the yuan, writes the online publication Gazeta.Ru.
Russian life insurers are moving to the yuan

As for endowment life insurance (ULI) in yuan, the average return on such programs varies from 3% to 6% per annum.

Unit-linked insurance products in yuan are expected to appear on the Russian market in the near future. Such strategies will allow invest in yuan bonds issued by Russian issuers. This will give conservative investors the opportunity to diversify their investment portfolio. The return on unit-linked insurance strategies in yuan is expected to be 4–4.5% per annum. Calculations will be carried out in rubles to protect against devaluation, and the dynamics of return will be determined by changes in the exchange rate. The advantage of the strategy will be the absence of taxes on currency revaluation.

As a result, the share of the yuan on the Russian exchange market reached almost 40% by the end of 2022 and continued to grow in 2023. And in August 2023, the Central Bank of the Russian Federation swapped exchange rates on its website: the yuan now comes first, not the dollar.

Thus, it is obvious that the use of the Chinese yuan and other currencies of friendly countries in insurance products will expand the Russian life insurance market as a whole.

Source: https://www.gazeta.ru/comments/column/articles/17787793.shtml

Photos are from open sources.

Share
read also
How to prepare for winter
How to prepare for winter

According to the National Bank of Kazakhstan, inflation has already exceeded 16%. Foo...

38% of Russians began to save small amounts during the pandemic
38% of Russians began to save small amounts during the pandemic

Almost three quarters of Russians (73%) thought about the need to make savings during...

Halyk-Life paid out almost 3 billion tenge to clients for the first quarter of the year
Halyk-Life paid out almost 3 billion tenge to clients for the first quarter of the year

According to insurance activity results, JSC Halyk-Life paid out more than 2.9 billio...

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