(MENAFNEditorial)
Russia boasts the largest insurance market in Central and Eastern Europe (CEE) both in terms of pene tration as well as overall size; however the sector i s heavily lop-sided towards the non-life segment which is underpinned by the expansion of the compulsory medical expenses insurance (CMEI) market. That said the life segment driven by the expansion of home ownership by way of mandatory life policies for mortgagers has been the clear outperformer in terms of premiums growth in recent years a trend which we expect to continue .
Among the BRICS Russia has the lowest insurance penetration of 2.6% of GDP. In comparison South Africa is the most penetrated insurance market among the BRICS at 14.6%. While this highlights the massive growth potential of the Russian market the country's low penetration ratio is also symptomatic of the inherent challenges within the industry such as the numerous regulatory changes which have created uncertainty and slowed market expansion over the years. At 95% of the total insurance market the non-life sector remains the overwhelming dominant segment. Its market share is boosted by the inclusion of compulsory medical expenses insurance (CMEI). Given that CMEI makes up about half of the non-life market the non-life segment and also the overall insurance market will be significantly smaller without it. However we believe that with the Bank of Russia now replacing the Federal Commission of Securities Market (FCSM) as the industry's regulator there will be more stability for the industry. Furthermore we expect Russia's insurance penetration to remain stable at between 2.6% and 2.7% over the 2015-2019 period as its insurance industry grows in line with its economy.
Full Report Details at
- http://www.fastmr.com/prod/991627_russia_insurance_report_q3.aspx?afid=101
2015 will see growth in both the life and non-life sectors come under increasing pressure from the headwinds facing the Russian economy with our Country Risk team forecasting GDP growth to slow to 0.6% in 2015 from 1.3% in 2013 due to the spill over...
The Russia Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments key growth drivers and risk management projections including the macroeconomic situation government policy regulatory environment and the level of development and potential for growth broken down by line. Leading insurers are profiled covering premiums products and services and competitive positioning.
BMI's Russia Insurance Report provides professionals consultancies government departments regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Russian insurance industry.
Key Benefits
* Benchmark BMI's independent insurance industry forecasts for Russia to test other views - a key input for successful budgeting and strategic business planning in Russia's insurance market.
* Target business opportunities and risks in Russia through our reviews of latest industry trends regulatory changes and major deals investments and macroeconomic developments.
* Exploit latest competitive intelligence on your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI’s key industry forecasts and views covering the Life and Non-Life segments the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the insurance sector and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators supported by explicit assumptions plus analysis of key risks to the main forecasts. Indicators include:
* Life/non-life Premiums: Total premium growth (USDmn) premium growth (% y-o-y) penetration (% of GDP) density (USD per capita) for Life and Non-Life sectors claims reinsurance and assets and liabilities.
* Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor transport property personal accident health general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide an indices of highest to lowest appeal to investors with each position explained.
Company Profiles*
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
* Population: Male/female by age group active/pensionable/youth population % of total urban/rural population % of total.
* Freight: Tonnage – air freight rail freight road freight inland waterway.
* Motor: Fleet size by type of vehicle % change y-o-y.
* Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position business strategies and investment potential of the leading insurance companies.
Sources
The insurance Reports draw on an extensive network of primary sources such as multilateral organisations government departments industry associations chambers and company reports.
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