Basic research. Analysis of the state of the insurance market of the Russian Federation

12.01.2022

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Kozlova Elena Ivanovna, Cand.Econ.Sci., associate professor Lipetsk state technical university, Lipetsk, Russia Novak Maxim Andreevich, Cand.Econ.Sci., associate professor Lipetsk state technical university, Lipetsk, Russia

THE REVIEW OF METHODS OF IDENTIFYING THE RELATIONSHIP OF THE DYNAMICS OF EMPLOYMENT AND GROSS REGIONAL PRODUCT

abstract. The article reviews approaches to the definition of macroeconomic regularities at the regional level. The starting point of the study is the view of the human factor as the most important productive force, one of the conditions for economic growth. Therefore, as the main link to identify such patterns chosen population size and level of employment. Keywords: economic growth, statistical interrelation of indicators, gross regional product, demographic changes, population, employed population.

ANALYSIS OF THE INSURANCE MARKET OF RUSSIA Kokhno Natalia Olegovna, Ph.D. tech., sciences (e-mail: [email protected]) Oberemko Ekaterina Vladimirovna, student (e-mail: [email protected]) Lopatina Anastasia Alekseevna, student (e-mail: [email protected]) Novocherkassk Engineering and Land Reclamation Institute. A.K. Kortunova Donskoy State Agrarian University, Russia, Novocherkassk

This article analyzes the Russian insurance market. The volumes of payments, bonuses for the 1st quarter of 2018 and 2017 were determined.

Key words: insurance market, life insurance, number of participants, OSAGO, insurers, premium volume, payout volume.

The insurance market is a special socio-economic environment, a certain area of economic relations, where the object of sale and purchase is insurance protection, demand and supply for it are formed. It includes life insurance, accident and illness insurance, voluntary medical insurance, motor hull insurance, OSAGO, insurance of other property of legal entities, property insurance of citizens. Like the market and any other goods, works and services, the insurance market is prone to cyclicality, lower prices for insurance services and economic natural fluctuations in growth.

The modern Russian insurance market is characterized by increased competition, a limited offer of a range of insurance products, a high territorial concentration of leading insurance companies in central regions with a developed branch network, tightly managed by parent organizations, often without taking into account the specifics of the corresponding regional segment of the insurance market.

To establish the state of the insurance market in Russia, we will now analyze its segments on a quarterly basis.

According to the results of the analysis, the 1st quarter of 2018 was the most successful for insurers over the past 5 years. Compared to the previous year, the volume of premiums by type of insurance increased by 19.3% and amounted to 377.4 billion rubles.

The volume of payments decreased by 11.7% to 109.1 billion rubles, of which 4.65 billion rubles were paid by court order. The amount of payments includes non-identified write-offs for collection, so the total amount is greater than the amount of payments for individual types.

After stagnation in 2017, premiums for voluntary types showed high positive dynamics: the volume of premiums increased by 24.6 billion rubles due to almost all types, except for insurance of land, air and water transport, agricultural insurance and liability insurance. The share of life insurance compared to

2017 increased by 5.5%, the share of auto insurance decreased by 4.9%, VMI-2.5%.

The increase in accident insurance premiums for the 1st quarter of 2018 amounted to 28.8%, or 7 billion rubles. The number of contracts increased by 199 thousand to 11.48 million. The average premium increased from 2,175 rubles. in the same period last year to 2,752 rubles, which is associated with an increase in the share of contracts with legal entities in the 1st quarter.

The number of market participants has stabilized. According to the Central Bank of the Russian Federation, as of March 31, 2018, 223 insurance and reinsurance companies, as well as 11 mutual insurance companies, were registered in the register of insurance business entities, of which only 162 collected more than 10 million rubles in the 1st quarter

2018. During the first 3 months of 2018, licenses were revoked from 4 companies, including 1 due to voluntary abandonment of insurance activities

The 1st quarter of 2018 was the best for the corporate property insurance segment over the past 2 years: the volume of premiums increased by 33% to 34.28 billion rubles. Almost all companies from the top twenty in this category showed a positive trend in premiums.

The volume of property insurance of citizens increased by 16.85% to 13.4 billion rubles. The decrease in premiums compared to the 4th quarter is typical for this type. The composition of the TOP-3 does not change, but the share of the segment leader PJSC Rosgosstrakh continues to decrease (from 29.8% in the 1st quarter of 2017 to 23.8%). OOO IC VTB Insurance and OOO Sberbank Insurance co-

maintained a positive trend. The number of insurance contracts increased by 1.95 million, including CJSC VSK - by 818 thousand, LLC IC Sberbank Insurance - by 650 thousand, SPAO Ingosstrakh - by 251 thousand.

Let us trace the dynamics of changes in insurance premiums and payments for property insurance from the 1st quarter of 2016 to the 1st quarter of 2018. (Picture 1)

18,000 16,000 14,000 »2! 12 000

X 8,000 1 6,000 4,000 2,000 0

premiums, million rubles

payments, million rubles

Figure 1 - Dynamics of insurance premiums and insurance payments

property 2016-2018

Life insurance remains the main market driver with a premium growth rate of over 54%. However, the number of concluded contracts is reduced by 103,428 compared to the 1st quarter of last year due to a 25% decrease in the number of insured borrowers.

The volume of life insurance payments increased to 10.7 billion rubles due to the expiration of life insurance contracts concluded. (Table 1)

Table 1 - Key indicators for life insurance, 2016-2018

Years Prizes, million rubles Payments, million rubles Number of contracts

Q1 2016 41,423.70 6,654.84 1,193,232

Q2 2016 47,422.07 6,442.72 968,768

Q3 2016 58,660.78 8,482.88 1,018,719

Q4 2016 68,233.61 8,402.38 1,641,761

Q1 2017 59,830.62 7,788.90 987,727

Q2 2017 81,400.17 9,336.70 1,114,948

Q3 2017 89,651.59 9,071.14 1,157,271

Q4 2017 100,654.62 10,290.10 1,277,226

Q1 2018 92,220.75 10,676.08 884,299

Analyzing the Russian insurance market, let's see how the volume of premiums for insurance of land transport means changes. The volume of premiums remained at the level of the 1st quarter of last year (36.7 billion rubles), and the number of contracts increased by almost 154,000. The growth in the number of contracts was driven by sales of new cars (by 70.5 thousand more than in Q1 2017) and an increase in demand for cheaper products with franchises.

The average market payout ratio for ground transportation decreased (52.4% in Q1 2018 vs. 57.35% a year earlier). Both the number of claimed losses (by 17 thousand) and the number of refusals 8,248 (in the 1st quarter of 2018 against 13,236 in the 1st quarter of 2017) decreased, and the average payment increased by almost 7 thousand rubles. This is due to the wide distribution of products with the participation of policyholders in losses.

The number of insurers involved in this type of insurance decreased from 111 to 102 over the quarter, but only 69 companies concluded more than 100 contracts. A quarter of motor hull insurers have a payout ratio of more than 100%, but for almost all of them the share of motor hull in the portfolio does not exceed 5%. For other insurers, this market segment remains quite profitable.

Table 2 - TOP-10 regions in terms of OSAGO payments

Volume of premiums, thousand rubles Amount of payments, thousand rubles Payout ratio, %

Republic of Dagestan 176,827,316,348 178.90%

Karachay-Cherkess Republic - 35,759 61,030 170.67%

Republic of Tyva 13,825 22,175 160.39%

Republic of North Ossetia-Alania 69,619 107,654 154.63%

Republic of Adygea (Adygea) 49,603 75,679 152.57%

Primorsky Krai 329,761,457,526 138.74%

Ivanovo region 197,967 264,919 133.82%

Republic of Ingushetia 20,622 23,819 115.50%

Republic of Buryatia 127,864 146,798 114.81%

Magadan Region 24,100 26,781 111.12%

Analyzing OSAGO insurance, we can say that the volume of premiums decreased by 46 billion rubles simultaneously with a decrease in the number of contracts (minus 101.5 thousand compared to the 1st quarter of 2017). Some car owners generally refused to conclude an agreement, some purchased a fake policy.

The volume of payments decreased by almost 20 billion rubles compared to the 1st quarter of last year (32.4 billion rubles), and the payout ratio - up to 70.5%. However, if in 2017, 16 insurers had a payout ratio of more than 77%, then by the end of the 1st quarter there were already 19 such companies. In 10 of them, the share of OSAGO in the portfolio exceeds 30%, which poses a threat to financial stability. 2 of these 10 companies left the market in the 2nd quarter of 2018. (Table 2).

According to the results of the first quarter of 2018, the average payment under OSAGO amounted to 61.1 thousand rubles. The number of regions with a payout ratio of more than 77% has reached 42, in 17 of them payouts exceed premiums.

Consider the factors that affect life insurance and other types of insurance. (Figure 2.3)

Investment attractiveness of insurance products

Activity of the main players Lending volumes Purchasing power of the population Legislative reforms of the insurance market

2018 ■ 2017

Figure 2 - Factors affecting the life insurance market

in 2017-2018

From the data presented in Table 2, it can be seen that life insurance is the investment attractiveness of insurance products, which in 2017 amounted to 60%, and in 2018 it increased by 33% and amounted to 93%, the activity of the main players also has a significant impact, which in 2017 amounted to 80 %, and in 2018, decreased by 16% and therefore amounted to 64%, lending volumes amounted to 50% in both 2017 and 2018. The most insignificant factors affecting life insurance is the purchasing power of the population, which in 2017 amounted to 30%, and in 2018 it decreased by only 1% and therefore amounted to 29% and the legislative reforms of the insurance market in 2017 amounted to 10%, and in 2018 decreased by 3% and amounted to 7%.

Lending volume

Purchasing power of the population

Legislative reforms of the insurance market

economic sanctions

Ruble exchange rate volatility

2018 ■ 2017

Figure 3 - Factors affecting the non-life insurance market in 2017 and 2018

Examining Figure 3, we can say that the volume of lending affects the market more than anyone else in 2017, it amounted to 80%, and in 2018 it decreased by 1% and amounted to 79%; the purchasing power of the population in 2017 was 70%, and in 2018 it decreased by 6% and amounted to 64%. Legislative reforms of the insurance market have less influence; in 2017 they amounted to 10%, and in 2018 they increased by 40% and amounted to 50%; economic sanctions in 2017 amounted to 10%, and in 2018 slightly increased by 4% and amounted to 14%; the volatility of the ruble exchange rate in 2017 was 60%, and in 2018 it decreased by 46% and amounted to 14%.

According to the results of the 1st quarter of 2018, we can expect active promotion of investment life insurance through credit organizations, which will be facilitated by low interest rates on deposits. Life insurance premiums are expected at the level of 40-45%. The volume of the life insurance market will reach 470 billion rubles. Insurance against accidents and illnesses (growth rates - 14-16% for 2018), VHI (4-6%) and insurance of property of citizens (9-11%). These segments will be supported by the spread of critical illness insurance programs, boxed products, as well as inflation in the cost of medical services. In the field of OSAGO regulation, no significant changes are expected until the end of the year. In motor hull insurance, for the first time in several years, a slight positive dynamics of premiums will be observed - the growth rate will be 1-3% in 2018 compared to 2017. In corporate property insurance, the market is expected to recover by 2-4% after the fall in 2017.

Bibliography

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2. Insurance market 2018 [Electronic resource]. Access mode: blp://sepler-yf.ru/data/economy/strahovoy-rynok-2018.php. Retrieved October 25, 2018

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Kohno Natalia Olegovna, cand. tech., sciences" (e-mail: [email protected])

Oberemko Ekaterina Vladimirovna, student faculty Bist (e-mail: [email protected]) Lopatina Anastasia Alekseevna, student faculty Bist (e-mail: [email protected])

Novocherkassk Engineering Reclamation Institute. A. K. Kortunov

Donskoy GAU, Russia, Novocherkassk

ANALYSIS OF THE INSURANCE MARKET OF RUSSIA

abstract. This article analyzes the insurance market in Russia. To determine the level of benefits, premiums for the 1st quarter of 2018 and 2017.

Keywords: insurance market, life insurance, number of participants, CTP, insurers, the volume of premiums, the volume of payments

ESSENCE, TYPES AND FEATURES OF PROFESSIONAL LIABILITY INSURANCE IN THE RUSSIAN FEDERATION Kosheleva Darya Sergeevna, student (e-mail: [email protected]) Suslyakova Oksana Nikolaevna, Candidate of Economics, Associate Professor

Financial University under the Government of the Russian Federation,

Kaluga branch, Kaluga (e-mail: [email protected])

This article is aimed at studying professional liability insurance in the Russian Federation and the development prospects of this sub-sector of liability insurance. The authors analyzed the market for this type of insurance services, analyzed a number of existing problems and identified ways to overcome them.

Key words: professional liability, professional liability insurance, prospects for the development of professional liability, world experience.

In modern market conditions, each business entity cannot guarantee that in the course of its professional activities there will not be any circumstances affecting not only the interests of other participants, but also causing certain damage. Thus, the risk of harm to the health, life or property of third parties cannot be excluded due to the fact that each person is not “insured” from mistakes. In addition, more professional mistakes can make even

LIFE INSURANCE
OSAGO
LIABILITY INSURANCE
INSURANCE MARKET

This article presents the definition, indicators and structure of the insurance market in Russia. The analysis of the main types of insurance based on the results of 2016 was carried out. The TOP-10 most reliable insurance companies for life insurance, liability and OSAGO have been identified.

The current stage of development of the international financial market
Features of travel insurance in the Russian Federation

The insurance market is a sphere of monetary relations, where the object of purchase and sale is an insurance service, and supply and demand for it are formed. The insurance market is a very complex integrated system. Where the structure of this system is formed from insurance companies, policyholders, insurance products, insurance intermediaries, professional appraisers and the system of state regulation of the insurance market.

According to the Bank of Russia, the volume of the insurance market in 2016 reached 1,181 billion rubles, the growth rate of premiums amounted to 15.3%. At the same time, excluding the life insurance segment, premium growth rates amounted to only 7.9% in 2016 compared to 2015, falling 0.7 percentage points short of the 2013 level. Quarterly growth rates of insurance premiums have been growing for three consecutive quarters since the beginning of 2016 and showed a downward trend in the fourth quarter. The positive quarterly dynamics of insurance premiums was due to the active promotion of investment life insurance products, the residual effect of the increase in OSAGO rates, the recovery in the accident and health insurance segment, and the recovery of the corporate insurance market after a fall a year earlier. The slowdown in quarterly growth rates of premiums to 16% (to 5.9% excluding life insurance) in the last quarter of 2016 is explained by the negative dynamics quarterly bonuses on OSAGO, as well as a decrease in the growth rate of premiums for insurance against accidents and illnesses and VHI after the peak of growth in the III quarter.

In the growing market, the leader of the fall was motor hull insurance, which lost 16.6 billion rubles in 2016. As a result of a two-year drop in auto hull insurance premiums for 2015–2016, a total loss of 50 billion rubles of premium was missed, which led to changes in the segmentation of the insurance market. After giving way to the second place among the largest types of life insurance, auto hull now occupies the third line. In addition, compulsory liability insurance of the owner of a hazardous facility for damage caused by an accident at a hazardous facility suffered significant losses over the previous year: it decreased by 2.7 billion in premiums, or by 46.3% in relative terms, due to a decrease in tariffs, which came into force on September 1, 2015. In absolute terms, the insurance market grew by 157 billion rubles in 2016, almost 55% of which was provided by the life insurance segment (+86 billion rubles). The largest contribution to the increase in premiums was also made by insurance against accidents and illnesses (+27.1 billion rubles), OSAGO (+15.7 billion rubles), VMI (+8.9 billion rubles), insurance of other property of citizens and legal entities ( 7.5 billion rubles each) and insurance of financial risks (+6.8 billion rubles) . Introducing the most reliable Insurance companies Russia for OSAGO in 2016 in table 1.

Table 1. TOP-10 most reliable insurance companies in Russia in terms of OSAGO in 2016

One of the main drivers of the insurance market in 2016 was the life insurance segment. The number of insurance premiums collected in this segment increased by 67% compared to 2015. The main driver of the entire life insurance market in 2016 was the investment life insurance segment, which showed a two-fold growth . Such a high level of demand for this type of insurance is explained by a decrease in rates on bank deposits, while the demand for savings from citizens continues to grow (Table 2).

Table 2. TOP 10 most reliable life insurance companies in Russia in 2016

The main market share in this segment is still occupied by IC Sberbank Life Insurance, which increased the volume of insurance premiums by 41%. Despite this, the share of Sberbank in the segment decreased due to the growth of other participants - SivLife, Ingosstrakh Life, Raiffeisen Life, SOGAZ Life, PPF Life Insurance. The most significant growth was shown by Ingosstrakh Life, showing an eightfold increase in the number of collected premiums.

Classical life insurance, which is more focused on providing financial protection for health problems, also showed strong growth. This segment continues to develop evenly - people need additional financial support for illnesses and injuries, and among all the tools, only a policy can guarantee this. In accordance with the company's development strategy, it is necessary to offer customers classic life insurance programs through an agent network. Only individual work with a financial consultant allows you to choose a personal solution for everyone and provide high-quality service. Clients of the company, both in a year and in 5 years, can contact their consultant directly and ask a question about insurance.

Among the growing segments of the insurance market, one can also single out civil liability insurance and financial risk insurance. In 2016, the liability insurance market showed a 30% increase in insurance premiums compared to 2015, as well as an almost mirror-like increase in the number of signed contracts (25%). A similar trend continues in the financial risk insurance segment: according to preliminary estimates, the volume of collected insurance premiums increased by more than 45% compared to the same period in 2015.

The growth of the civil liability insurance segment is accompanied by the entry of a considerable number of new and large players into it. At the same time, among companies with the highest reliability rating, on average, the increase in premiums was small. With the exception of Sberbank Insurance, which carried out “active expansion” in the segment and in 2016 increased the volume of insurance premiums by 262% compared to the same period last year (Table 3).

Table 3. TOP-10 most reliable insurance companies in Russia in terms of liability insurance in 2016

According to experts, insurers will face a number of technological and other challenges next year. In addition to organizing electronic sales of OSAGO throughout the country, they will have to submit reports according to the new chart of accounts, the content and deadlines for reporting on a whole list of other basic documents have also been updated, including the structure and procedure for placing insurance reserves, own funds insurance company. Restrictions have been introduced for the placement of life insurers' assets. The regulator plans next year to focus on studying the business plans of insurers and compiling company profiles. Now strong distortions, too heavy shares of unprofitable types of insurance in portfolios will raise questions from the regulator.

The companies will also have to draw up mandatory actuarial opinions that shed light on the adequacy of the tariffs applied by the insurer for a particular type of insurance, on the completeness of the reserves. Strengthening requirements for asset quality and their verification will continue in 2017, the Bank of Russia promises.

The regulator plans to soon return to discussing the topic of "entry ticket" to the insurance market, potential investors will be asked questions not only about the origin of capital invested in insurance companies, but also questions about the future business strategy of the company.

The Central Bank is concerned that in 2016 the main problem of the insurance market was not resolved - relations with customers in the retail segment did not improve dramatically. In general, this interaction did not leave the depressed zone in 2016: two-thirds of all complaints against participants in the entire financial market in the Russian Federation still came from insurers, including the vast majority of complaints related to conflicts in the field of OSAGO.

Thus, 2016 did not bring any major changes to the market and continued the dynamics that emerged in 2015 - motor insurance is gradually moving to slow development, voluntary insurance life continued to grow, being at the peak of its potential by the end of the year, taking into account the current conditions, the segments of civil liability insurance and financial risk insurance began to grow more intensively.

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The article analyzes the state of the insurance market for the period from 2014 to the first half of 2016. The most demanded subjects of the insurance market today are identified - these are life insurance and OSAGO. It is necessary to pay attention to the reinsurance market, which has declined for the period 2014-2016. The reason for the decline is the introduction of anti-Russian sanctions, which led to the fall of the ruble, a low country rating and undercapitalization of a large number of companies. The directions of development of the market of insurance services are considered. The economic crisis affected the decline in the purchasing power of the population, the volume of lending, etc. It can be concluded that despite the difficult economic conditions, the insurance services market is still improving. The state attaches great importance to this type of market, because insurance provides financial and social protection population, develops scientific and technological progress and has an important investment resource.

Russian insurance market

insurance premiums

payments under insurance contracts

reinsurance

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The insurance market is one of the main indicators of the country's financial security. Today, the insurance market is in a difficult position, because. premium growth rates are declining, loss ratio is growing, insurers are under pressure from stock markets, currency fluctuations, in addition, the expansion of sanctions and the overall economic situation in the country create additional barriers to the development of this market.

And yet the demand for insurance services is growing, despite the emerging problems in this industry. The insurance market provides financial and social protection of the population, develops scientific and technological progress, insurance becomes an important investment resource for the economy, frees the state from many expenses that lead to certain risks. An important factor in increasing the investment potential of the market is the growth in the share of life insurance, which provides an opportunity for long-term investments.

In accordance with the law of the Russian Federation "On the organization of insurance business in the Russian Federation" of November 27, 1992, as amended by the Federal Law of June 21, 2004 No. 57-FZ, insurance activity (insurance business) is understood as the scope of activities of insurers for insurance, reinsurance, mutual insurance, as well as insurance brokers, insurance actuaries for the provision of services related to insurance, with reinsurance.

The value of the insurance market in the country's economy:

Protection of the insured from accidental dangers;

Social production is developing, thanks to the placement of insurers' resources in various types of financial institutions (banks, stock market, utilities, etc.).

Table 1

Number of insurance market entities

table 2

Top 10 Russian companies in terms of fees in 2015

To analyze the current state of the insurance market in Russia, it is necessary to highlight such indicators as:

The share of insurance premiums in the country's GDP;

Insurance premiums per capita;

The amount of insurance premiums and their dynamics;

Structural elements of the insurance market, changes in the structure for the analyzed period.

According to the Central Bank of the Russian Federation, the number of insurance market entities in 2015 compared to 2014 decreased by 89 units. (- 15.7%) mainly due to insurance organizations (- 17.3) and insurance brokers (- 11.3). The reduction of insurers is associated with violations of regulatory requirements. The requirements of the Bank of Russia in the future will be aimed at improving the accounting of insurance activities, increasing its transparency, predictability and sustainability. The table shows that the number of insurers for the first half of 2016 is still declining (Table 1).

In 2015, the number of concluded contracts decreased. Over the years, the total amount of insurance premiums has increased by 3.3% (1,023.8 billion rubles). Payments under contracts increased by 7.1% to 509.21 billion rubles. Life insurance and VMI show good dynamics (Fig. 1, 2).

Life insurance in comparison with 2014 increased by 19.1%, the total volume of premiums is 129.7 billion rubles. VHI in terms of the number of contracts in 2015 compared to the previous year is in the red by 9.4%. Despite this, VHI insurance premiums in 2015 increased by 3.6%. The reason for the decrease in VHI is inflation in the cost of medical services, which insurers pass on to consumers of this service (insurers).

Auto insurance is the main source of insurance market growth. For several years until 2015, CASCO was the largest insurer in this area. For example, in 2014, the CASCO market share was 22.1%. The leading position in 2015 is occupied by OSAGO. The total volume of premiums collected increased by 44.2% compared to 2014 (218.7 billion rubles). The number of concluded MTPL contracts decreased by 7.8% compared to 2014.

Rice. 1. Insurance premiums for 2014-2015, in %

Rice. 2. Payments under insurance contracts for 2014-2015, in %

The reinsurance market has shrunk, thus, the share of reinsurers in insurance reserves at the end of 2015 is 19% (up to 130.4 billion rubles). The volume of inward reinsurance decreased by 27% compared to 2014. The reason for the decline is the introduction of anti-Russian sanctions, which led to a depreciation of the ruble, a low country rating and undercapitalization of a large number of companies.

Russia's accession to the World Trade Organization implies the relationship of the Russian insurance market with the world, but due to the state of the economy in the country, one should not rush to increase the number of insurers with foreign capital.

Tab. Table 2 shows the top 10 Russian companies in terms of fees in 2015, which showed an increase in premiums in 2015. Due to this, the share of this segment reached 71%. As before, Rosgosstrakh remains the leader in collecting premiums. It should be noted that in 2015, 77 insurance companies lost their licenses, and in the first quarter of 2016 their number decreased by another 12.5%, which affected the general market dynamics. In the first quarter of 2016, the insurance company SOGAZ is in the lead (93 billion rubles in collected premiums), thus displacing Rosgosstrakh to the second place (64 billion rubles in collected premiums), Ingosstrakh occupies third place (45 billion rubles) and fourth position occupied by RESO-Garantia (41 billion rubles).

In 2016, the demand for investment projects decreased due to a decrease in real incomes of the population. For life insurance, restrictions were introduced in 2016 related to the maximum amount of commission in bancassurance, which leads to certain problems. Nevertheless, the main segments of the market for the first half of 2016, in which an increase in premiums is observed, are life insurance for the period (from 06/30/2015 to 06/30/2016 + 66.5) and OSAGO motor insurance (for the period from .2015 to June 30, 2016 + 20.9%. The situation with reinsurance in this period is still deteriorating. The volume of incoming reinsurance in relation to the corresponding value of the previous year decreased by 28%.

Insurers' own financial resources suffer mainly due to the relatively low standards that are imposed on insurance organizations at the stage of development in relation to the size of their authorized capital and the rate of contributions to insurance reserves. The standards can be increased when they correspond to the level of the state of the country's economy, the income of the population, etc.

According to the plan for the development of the financial market of the Russian Federation for the period 2016-2018. The Bank of Russia focuses on the development of long-term accumulative insurance life. The implementation of this task is to increase the attractiveness of life insurance as investment institute for citizens and organizations. In 2016, Federal Law No. 363-FZ “On Amendments to the Law of the Russian Federation “On the Organization of the Insurance Business in the Russian Federation” on the National Reinsurance Company” was adopted. The company will accept for reinsurance a wide range of risks, including those related to home insurance and government orders. First of all, those enterprises that are subject to international sanctions will be provided with insurance protection. The purpose of the direction of the national reinsurance company is to reduce the dependence of the Russian insurance market on foreign reinsurers. Thus, it will be possible to increase the capacity of the Russian reinsurance market.

Also, the main tasks of the development of the insurance services market are:

Ensuring full protection of the rights of consumers of insurance services;

Improvement and implementation of modern insurance technologies;

Improving the internal control system of insurers;

Training of highly qualified personnel for the insurance services market;

Increasing the level of insurance literacy of the population;

Increasing the level of insurance and reinsurance protection;

Strengthening the role of the Russian insurance market at the international level.

The effective development of the insurance market of the Russian Federation depends on the investment attractiveness of this market, the innovative activity of insurers, increasing the competitiveness of the insurance market, the quality of services, etc.

In the next 2017, according to the RAEX agency, the situation on the market will not improve. The turning point will be 2017, it will take another 3 years to restore growth rates. Will affect the decline in financial results in the insurance industry credit risks associated with banks deprived of licenses and unscrupulous counterparties.

According to a review of the insurance market in Russia by KPMG:

1. Priority measures aimed at increasing the volume of the portfolio in the near future will be:

Increasing the level of customer retention;

Development of new products;

Increasing the level of product penetration per customer;

Optimization of the cross-selling program;

Franchise conditions optimization;

Participation in mergers and acquisitions.

2. Priority measures aimed at reducing the level of unprofitability and cutting costs in the short term will be:

More detailed underwriting;

Reducing other operating expenses;

Changing the portfolio structure towards less unprofitable products/regions of presence;

Reducing acquisition costs;

Reducing staff costs.

Increasing customer retention and developing new insurance products have been and continue to be the most sought-after methods to increase sales. According to respondents, an effective measure is to increase the level of penetration of insurance products per client.

Bibliographic link

Zagirova N.R., Aleksandrova N.G. ANALYSIS OF THE INSURANCE MARKET OF THE RUSSIAN FEDERATION FOR THE PERIOD 2014–2016 AND PROSPECTS FOR ITS DEVELOPMENT // Fundamental Research. - 2016. - No. 11-5. - S. 1006-1010;
URL: http://fundamental-research.ru/ru/article/view?id=41292 (date of access: 03/24/2020). We bring to your attention the journals published by the publishing house "Academy of Natural History"

Despite the long stagnation (or decline), the insurance market in Russia is beginning to gain strength and show significant growth (with the exception of some segments). What type of insurance occupies a leading position in the Russian market? How many active insurers are there in Russia in 2018? What problems and prospects does Russian insurance have? The answers to these questions, as well as key indicators of the insurance market over the past 4 years, are presented in this article.

How many insurers are there in Russia?

During the period under review, from 2014 to 2017, there has been an active decline in players in the insurance market. Thus, in 2014, 404 insurance and reinsurance companies were registered (16 less than in 2013). And already in 2015, this number decreased by exactly 70 organizations, and 12 of them were in the TOP-100. 2016 showed approximately the same results, 73 companies left the market, 13 of which were also in the TOP-100. The largest departing organizations were "MSK", "Independence" and "Investments and Finance".

Thus, by the beginning of 2017, 256 organizations were operating in the insurance market. Of these, by the beginning of 2018, 226 insurers remained on the insurance market (not including brokers), and 21 companies voluntarily relinquished their licenses. Table 1 reflects data characterizing the number of insurers as of May 2018. It should be noted that in the period from January to the end of April 2018, 26 organizations were able to obtain a license, including 22 insurance companies and 4 brokers.

Table 1 - Number of subjects of insurance business in Russia in 2018

federal district	Number of operating entities
federal district	Insurers	Reinsurers	Brokers
Central	134	4	55
Far Eastern	8	-	-
Volga	26	-	3
Northwestern	14	-	8
North Caucasian	-	-	-
Siberian	18	-	-
Ural	17	-	-
Southern	5	-	1
Total	293

Source: Register of subjects of insurance business of the Central Bank of the Russian Federation as of May 4, 2018

The main reasons for the revocation of the license from insurance entities was the failure to comply with the requirements of the regulator, which since September 2013 has been the Bank of Russia. At the same time, some companies left the market by joining (merging) with a larger insurer. So, in particular, in 2016, MSK was merged with VTB Insurance, in 2017, the ZHASO insurance company became part of SOGAZ. In principle, the trend of such mergers and acquisitions is quite obvious, especially against the background of the merger of the insurance assets of the Renaissance Insurance and Welfare groups, as well as the transition of Rosgosstrakh under the control of FC Otkritie.

The situation on the market is also aggravated by the fact that small insurers become uncompetitive in the current conditions. This is due precisely to mergers and acquisitions, as well as an increase in the authorized capital and large volumes of insurance premiums. In 2017, the total authorized capital amounted to 206.6 billion rubles, which is 10 billion less than in 2016. At the same time, the average size of the authorized capital increased by 8.5% (from 842 to 914 million rubles). If a decision is subsequently made to establish a minimum capital threshold of 300 million rubles, then most small insurers will have to abandon their activities.

Key Development Indicators

Over the past few years, the Central Federal District has traditionally been the leader in the structure of total insurance premiums. In 2014 - 57.44%, in 2015 - 57.67%, in 2016 - 58.56%, in 2017 - 59.24%. Over the 4 years under review, some districts showed tremendous growth, including the volume of premiums in the Central Federal District increased by almost 200 billion rubles, while the rest approached the end of 2017 with an average increase of 20 billion. A special place can be given to the North Caucasian Federal District, in which the volume of premiums not only did not increase, but decreased by 1.5 billion rubles compared to 2016. Table 2 shows the distribution of premiums by federal districts.

Table 2 - The volume of insurance premiums in the period 2014-2017

federal district	2014, thousand rubles	2015, thousand rubles	2016, thousand rubles	2017, thousand rubles
Central	567 394 997	590 421 630	691 396 365	756 914 871
Far Eastern	21 997 515	23 269 378	27 635 943	32 616 312
Volga	120 780 815	120 386 920	137 239 841	146 672 401
Northwestern	96 830 137	105 719 983	115 940 422	122 098 775
North Caucasian	11 764 990	12 520 702	14 093 751	12 649 641
Siberian	59 936 235	61 166 040	70 005 454	74 626 501
Ural	64 146 194	63 357 122	68 407 254	75 794 444
Southern	44 745 857	46 401 466	55 912 558	56 174 704
Crimean until 2016	175 847	576 077	-	-
Total	987 772 587	1 023 819 318	1 180 631 588	1 277 547 649

Source: CBR data

If we consider the statistics of the Central Bank of the Russian Federation, we can see that the growth rate of premiums exceeds the growth rate of payments. In the same Central Federal District in 2014, insurance organizations received more than 567 billion rubles as insurance premiums, and paid 300 billion less to policyholders (according to table 3 - 257 billion rubles). However, if we consider specific types of insurance and organizations involved in them, then the opposite trend (payments exceed premiums) is observed in non-life organizations, that is, those that do not deal with life insurance.

Table 3 - The volume of insurance payments for the period 2014-2017

federal district	2014, thousand rubles	2015, thousand rubles	2016, thousand rubles	2017, thousand rubles
Central	257 320 355	290 642 550	275 259 069	283 010 819
Far Eastern	7 898 437	9 292 866	11 999 858	12 152 602
Volga	60 093 424	62 552 431	64 088 222	65 689 182
Northwestern	54 502 536	53 711 421	50 216 194	47 716 824
North Caucasian	5 130 580	6 413 648	8 559 588	9 042 023
Siberian	27 287 131	29 072 297	29 894 218	29 913 854
Ural	37 117 682	33 496 787	32 530 947	32 859 990
Southern	22 912 553	23 952 323	33 242 014	29 153 763
Crimean until 2016	5 889	83 154	-	-
Total	472 268 587	509 217 477	505 790 110	509 539 057

Source: CBR data

Analyzing Table 3, we can say that a fairly stable situation is observed in the Siberian Federal District, where the volume of insurance payments has not been growing for several years. Insignificant growth is shown by insurance companies in the North Caucasian, Volga, Far Eastern Federal Districts. Negative dynamics (which is good in the context of insurance payments) in 2017 were shown by organizations from the North-Western, Urals and Southern federal districts.

Table 4 - Number of concluded insurance contracts in the period 2014-2017

federal district	2014, thousand rubles	2015, thousand rubles	2016, thousand rubles	2017, thousand rubles
Central	68 751 813	64 839 340	89 524 835	111 660 506
Far Eastern	4 293 652	4 233 147	4 466 599	5 227 838
Volga	23 196 641	20 702 674	21 351 900	22 715 071
Northwestern	13 592 991	12 221 434	13 705 895	15 359 068
North Caucasian	3 224 888	3 006 442	2 831 699	2 480 375
Siberian	15 633 229	13 975 205	14 603 654	14 143 787
Ural	12 732 861	9 572 441	11 017 102	11 110 863
Southern	15 773 685	14 744 647	10 295 481	10 411 258
Crimean until 2016	84 337	166 848	-	-
Total	157 284 097	143 462 178	167 797 165	193 108 766

Russian insurers recognize the results of the past year as quite good

Moscow. December 29th. site - Russian insurers recognize the results of 2016 as quite good: the total increase in premiums can be 15%, in general, the year was not marked by large memorable losses. Auto insurance, which for a number of years acted as a driver of industry growth, lost its positions, giving way to life insurers in terms of premium growth dynamics - over 9 months, their fees increased by 67%. CMTPL fees for this period increased by 12%, while payments increased by 35%. Profitability from investment activities also generally satisfied insurers.

Experts differ in their expectations for 2017: the dynamics of premiums, according to forecasts, can range from zero to plus 15%. The next year for insurers, according to their estimates, may pass under the sign of a change in the paradigm of interaction with consumers of insurance services against the backdrop of new innovations in the OSAGO system.

"Shagreen leather"

Vladimir Skvortsov, General Director of AlfaStrakhovanie, noted a drop in premium growth rates at the end of the third quarter and in the first months of the fourth quarter of 2016: insurance".

Liability insurers are preparing to halve the amount of fees for compulsory liability insurance for owners of hazardous facilities (HFOs) by the end of 2016. According to the results of 9 months, this indicator amounted to 2.85 billion rubles, which is 48% less than the level of the same period in 2015 (the fall occurred after the adjustment of tariffs by the Central Bank of the Russian Federation). Fees in HIFs will be practically equal to fees in compulsory carrier liability insurance (OSCOP). Here, for 9 months of the year, fees amounted to 3.3 billion rubles, which is 8.6% more than in 2015.

However, next year fees in OSGOP may decrease: the regulator announced the prospects for adjusting tariffs in this sector of compulsory insurance, and liability insurers predict a reduction in fees in this regard by 20-25%.

A number of insurance market experts expect premiums to grow by 12-14% in 2017. At the same time, the volume of total fees (excluding compulsory medical insurance) may exceed 1.15 trillion rubles in 2016 and 1.3 trillion rubles in 2017.

According to the forecasts of the Institute of Insurance of the All-Russian Union of Insurers (VSS), the Russian insurance market will continue to grow in 2017, and investment life insurance (ILI) and boxed products will become the main growth drivers. The OSAGO market, on the contrary, is waiting for stagnation, and the unprofitability of this type of insurance will exceed a critical level. According to WCC forecasts, life insurance premiums will grow by 25% next year, which means that the pace of development of the segment will slow down compared to 2016.

For property insurance of individuals, the increase in premiums in 2017 may be 10-15%, and first of all it will be provided by the sale of "boxed" products through retail chains. Accident insurance premiums may also increase by 10-15%, and voluntary medical insurance by 5%. The domestic reinsurance market may increase by 15%, according to the BCC.

The assessment of the prospects for fees next year by the General Director of IC "AlfaStrakhovanie" V. Skvortsov is more restrained. He admits that 2017 will give a minimal increase in premiums: the increase in total fees can range from 0 to 3% in 2017.

These processes will be superimposed by the trend of further reduction of rates of the Bank of Russia and market rates, added V. Skvortsov. "The policy of lowering rates is favorable for the development of the economy as a whole. At the same time, for insurers, as for institutional investors, such a development of events will lead to a decrease in the profitability of investment operations. In terms of obtaining investment income, 2016 for insurers was poorer than 2015. And the next one will be worse compared to the results of 2016. As a result, it will be more and more difficult for companies in the insurance market to cover some losses from direct activities at the expense of investment income,” the head of AlfaStrakhovanie believes.

A representative of the financial block of another insurance company noted that in the past year, in the investment sector, insurers faced risks that came from the neighboring banking sector: conditions of declining business profitability and cultivated austerity across all costs.

During 2016, the total number of operating insurers in the Russian Federation in connection with the inspections of the regulator of the quality of their assets has been steadily declining, by the end of 2016 their total number will be about 280 companies.

SRO for insurers

In the outgoing year, a landmark event was the creation of a self-regulatory organization based on the VSS. We can assume that the community has switched to a dialogue mode through a "single window" with the regulator and government agencies quite officially. Now the head of the newly created SRO, Igor Yurgens, will defend the interests of both OSAGO insurers and insurers in other compulsory types of liability insurance, in voluntary types of insurance, including life, and medical insurers.

The Russian Union of Auto Insurers (RSA) and the National Union of Liability Insurers (NSSO) will retain the structure and status of legal entities. The Interregional Union of Medical Insurers (IMMI) will lose this status and join the ARIA as a separate direction. Consolidation of participation will allow commercial insurers, in some cases, to pay contributions to a single union without dispersing resources. The SRO will create cross-cutting divisions, committees and working groups.

However, the area for which the National Union of Agricultural Insurers (NUA) is responsible will remain somewhat apart. By law, this union is directly controlled by the Bank of Russia, the Ministry of Agriculture and the Ministry of Finance. But the NSA, like the RSA and the NSSO, acts as an associate member of the new SRO, participates in common work and union decisions. As a result, the three unions, which exist by virtue of special federal laws on insurance, will continue their independent activities for the time being.

Insurers from the group of "free artists" who have not yet been included in the VSS will have to decide their fate by mid-2017. For them, the choice is to join the ARIA or leave the market. Joining the union will mean the adoption and strict observance of mandatory and internal standards for the activities of SROs agreed with the Bank of Russia, including the rules in relations with consumers. Approximately 130 insurers faced such a choice at the end of the year, which is about 50% of the total number of companies with insurance licenses.

Consolidation of market participants within the SRO will improve the manageability of processes in the insurance market, according to the Bank of Russia. According to the law on SRO on financial market The Central Bank of the Russian Federation significantly influences the activities of SROs, internal processes, management decisions, appointments and dismissals of top managers, budgeting, other management, and especially strategic decisions.

The National Union of Agricultural Insurers worked for the first year of 2016 as a single union for agricultural insurers interacting with agricultural producers under contracts with state support. The NSA had to consolidate the market after a tough "cleansing" by the Central Bank of the Russian Federation in 2015 of the agricultural insurance segment from companies that abused the use of state subsidies. The NSA created unified insurance rules, developed a number of methodological documents, the union also increased the compensation fund, organized a space monitoring program for its members, which significantly reduced the number of disputes between the insurance company and insurers.

A sharp change in the subsidizing procedure in the fall of 2016, according to representatives of the NSA, contains serious threats for agricultural insurers in 2017. “On the one hand, we are faced with the task of expanding protection for crop areas, livestock, on the other hand, we are moving into the next year with a debt on state subsidies under already concluded agreements in the total amount of about 1.3 billion rubles,” Interfax- AFI" NSA President Korney Bizhdov. At the same time, he expressed hope for the development of cooperation in the field of improving the agricultural insurance system with state support next year with the government and legislators, as well as with the Ministry of Agriculture, other departments, regional authorities and the Bank of Russia.

reinsurance premiere

In the reinsurance sector, a premiere took place at the end of the year: the National Reinsurance Company (NPK) was established in Russia as a subsidiary of the Bank of Russia to form an additional level of protection against sanctions risks. The activities of the company are regulated by a special federal law. The NPK, which received a license in October 2016, will be fully operational from the beginning of 2017, the company has basically formed a management team.

Next year, the NIC under the insurance contracts for sanctions risks will accept 100% of the risks, commercial insurers will also be required by law to transfer 10% of all risks accepted for reinsurance from the market. At the same time, CDD follows the agreements of the direct insurer with its reinsurers under the contract, if the transferred share does not exceed 10%. CDD has the right to refuse to accept such commercial risks. Insurers have the right to offer in reinsurance a share of more than 10%, but then the CDD will significantly affect the conditions for concluding a direct risk insurance contract and the terms of reinsurance.

Nikolai Galushin, head of the NPK, told Interfax-AFI that "we are faced with the task of developing the company's business both domestically and in foreign markets. During this period, it is necessary to complete the process of forming the company - to adopt all policies, primarily in the field of investment activity and risk management, as well as build relationships with the Reinsurance Council. We need a constant dialogue focused on market development, the creation of new types of insurance, followed by reinsurance support from the NPC."

According to him, "in 2017, the market should be cleared of the presence in reinsurance of the part that does not involve the transfer of risk liability to the reinsurer, but only the transfer of premiums." "I suppose that the volume of the reinsurance market will decrease. At the same time, due to the emergence of NPC on the domestic reinsurance market, the geography of reinsurance volumes will gradually change - the volume of reinsurance premium transferred to reinsurance within the Russian Federation will begin to increase," he said.

Single arbitration manager

In the last ten days of December, a provision of the bankruptcy law came into force regarding the transfer of powers of an arbitration manager in the insurance market to the Deposit Insurance Agency (DIA). As in the banking sector, the DIA from next year will become the only structure that will now deal with insurers unable to fulfill their obligations.

Previously, the Central Bank of the Russian Federation, by random sampling, determined the SRO of arbitration managers, which delegated one of its members to the troubled IC. At the same time, the manager could not be sufficiently aware of the intricacies of the insurance business, or he could be unstable in the face of influence from the owners of the troubled insurance company. In both cases, the chances of keeping some assets of the UK decreased. If the activities of the appointed manager did not satisfy the Bank of Russia, he had to deprive the manager of his powers in court. All this wasted time. Provisional administrations appointed to insurance companies will now be headed by representatives of the Bank of Russia in accordance with the law. Strengthening control in case of bankruptcy of insurers is aimed at preserving the assets of insolvent companies for the subsequent fulfillment of their obligations to creditors.

Challenges and hopes

According to experts, insurers will face a number of technological and other challenges next year.

In addition to organizing electronic sales of OSAGO throughout the country, they will have to submit reports according to the new chart of accounts, the content and deadlines for reporting on a whole list of other basic documents have also been updated, including the structure and procedure for placing insurance reserves, own funds of the insurance company. Specifics have been introduced for the placement of life insurers' assets. The regulator plans next year to focus on studying the business plans of insurers and compiling company profiles. Now strong distortions, too heavy shares of unprofitable types of insurance in portfolios will raise questions from the regulator.

The regulator plans to soon return to the discussion of the "entry ticket" to the insurance market, potential investors will be asked questions not only about the origin of the capital invested in the insurance company, but also questions about the future business strategy of the company.

"Disease history"

In the outgoing year, insurers and the regulator increasingly began to talk about the crisis in OSAGO. However, the peculiarity of the current crisis in OSAGO lies in its non-economic nature, which means that it is quite difficult for the regulator to stabilize the situation using economic correction methods. The financial results of 2016 for OSAGO look satisfactory, according to the data provided by the Chairman of the Bank of Russia Elvira Nabiullina in a television interview on December 28: the total profit of insurers from OSAGO operations amounted to 12 billion rubles. Thus, the segment remains profitable.

In one of his speeches in the State Duma at the end of the year, Deputy Chairman of the Central Bank of the Russian Federation Vladimir Chistyukhin. called OSAGO the "cornerstone" in the insurance market of the Russian Federation and admitted that so far "systemic stabilization in the segment has not been achieved."

"The OSAGO system was introduced as a protection against bandit lawlessness on the roads, minimum guarantees for damage to people were introduced," V. Chistyukhin recalled. According to him, the golden age of OSAGO, when premiums covered payments, reserves were full, and insurers competed for the right to insure drivers, ended in 2009.

Then the insurers faced the problem of rising repair costs, the volume of cash payments increased significantly against the backdrop of remaining tariffs. Insurers have chosen several ways to minimize losses. Simultaneously with the sale of OSAGO policies, they began to impose other, already voluntary, insurance policies, minimized their presence in regions with increased unprofitability, prevented the fulfillment of payment obligations - slowed down payment terms, underestimated their amounts. Complaints from consumers flowed into the supervision, judicial practice became more active, disputes were transferred to the courts. After the insurers were subject to the law on consumer protection, the insurers were subject to unconditional payment of fines in the amount of 50% of the amount of the payment. This state of affairs inspired unscrupulous intermediaries, who began to earn not only on fines, but also on the organization of an inflated cost of examination of restoration repairs, on reimbursement of expenses of representatives in courts. The goal of mediators is to prevent the insurer from paying the victim in any way and to take the case to court.

According to the PCA, in 2015, payments to OSAGO on court decisions amounted to 18 billion rubles, of which 10 billion rubles went to unscrupulous car lawyers. In the first half of 2016, the earnings of intermediary lawyers in OSAGO were at the level of 9 billion rubles.

As a result, OSAGO payments in a number of regions grew by multiples, and consumers themselves did not receive anything from all overpayments. Intermediaries did not pay taxes on their income.

According to experts, the effect of tariff increases in 2014-2015 has been exhausted this year.

The geography of the attack of intermediaries on OSAGO insurers began from the southern regions. There, the frequency of losses is 50-70% higher than the average for Russia, and average value loss is 30-40% higher than the average loss in the country, Chistyukhin cited the data.

The Bank of Russia, together with the RAMI, has taken a number of measures to protect the rights of the insured. Thus, the possibility of forced sales of additional policies for insurers was blocked by the introduction of a 5-day "cooling off period", when the buyer could return the additional insurance policy purchased in a hurry to the insurer for the full cost. Also introduced unified methodology refurbishment estimates, which eliminates arbitrage on the estimate repair work. Finally, a system of sales through a "single agent" was introduced to increase the number of OSAGO policies in problem regions.

As Mikhail Volkov, General Director of Ingosstrakh, said, "the profitability of insurers for all types of insurance, and in particular for OSAGO, will vary greatly based on the results of 2016. For example, our net profit under IFRS will exceed 10 billion rubles by the end of the year" .

"The profitability of the OSAGO portfolio largely depends on how actively the company is selling in depressed regions," Yevgeny Ufimtsev, executive director of RSA, told Interfax-AFI.

The largest player in the OSAGO market - Rosgosstrakh - in the first half of 2016 showed a loss of 9 billion rubles, the company's cash result for 11 months was minus 11 billion rubles, a source in the motor insurance market told Interfax-AFI.

In December, the entire market discussed information about the deal between Rosgosstrakh and Otkritie Bank, the specific structure of the deal has not yet been disclosed. Experts believe that in this way the insurer expects to find additional funding. The company consistently reduced its interest in OSAGO: following the results of 9 months of 2016, the number of agreements concluded under OSAGO amounted to 7.3 million against 11.5 million for same period 2015. OSAGO insurers do not exclude the loss of interest of the company's owners in this business, despite the renewed growth in the portfolio of OSAGO agreements at Rosgosstrakh in the last month and an increase in commissions for agents.

The traditionally strong supporter of auto insurers - voluntary auto hull - has been degrading for several years following the dramatic decline in new car sales in 2015. According to experts, in 2016 sales volumes will “sink” by another 10%. The forthcoming transition to preferential in-kind payments in OSAGO in the form of car repairs will satisfy most of the needs of motorists in compensation for property damage, and the auto hull segment may shrink further, insurers believe.

Getting ready for a reboot

The good results of 2016 did not bring joy to the insurance community. The mood of the leaders is gloomy, anxiety for the future of the industry is heard everywhere: from the beginning of 2017, the Russian insurance market is destined to enter a period of trials. The main "theater of battles" will be the OSAGO sector. If the situation with the growth of unprofitability in problem regions cannot be quickly reversed, then by the middle of next year the combined loss ratio in this type of insurance for most players will exceed 100%. Deputies periodically raise the issue of creating a state-owned company in the OSAGO segment. However, the calculations of the Bank of Russia show the need for annual financing of such a structure in the amount of 25 billion rubles a year. In addition, it is not clear how the problem with "traffic lawyers" will be resolved by itself in this case.

Discussions about the prospects of all other types of insurance have been postponed, they are somehow going in the background. Insurers and the regulator understand that the future vector of development of the insurance business in the Russian Federation depends on how the "passing the exam" in the direction of OSAGO in 2017 will take place. Hope for success emerged by the end of December 2016 with the adoption in the first reading of an important bill for auto insurers on the priority of in-kind payments in OSAGO.

Finally, legislators, regulators, law enforcement, and insurers have come to realize the public harm from the growing side business of insurance brokerage. At the end of the year, a meeting with law enforcement officers was held in Rostov, which the insurance community defined as a "turning point". At this meeting with representatives of the prosecutor's office, law enforcement agencies, the Bank of Russia, the results of the first serious investigation that led to the initiation of criminal cases were presented. It was about Volgograd, where a criminal group was exposed, the beneficiaries of which were 2 deputies of the city duma. People earned tens of millions of rubles monthly on payments supposedly in favor of consumers.

The introduction of in-kind compensation in OSAGO, planned for the spring of next year, will eliminate the monetary component in the damage compensation system: drivers are promised high-quality repairs, and even without taking into account wear and tear vehicle. Currently, the articles of the bill are being polished at the stage of preparing it for the second reading, legislators and the regulator are striving to qualitatively protect the rights of consumers in case of innovation. By March 2017, the bill may come into force if its passage in the State Duma is not slowed down. Somewhat later, this bill may be supplemented by another one - on the creation of a financial ombudsman in the OSAGO market. In this case, the consumer will have the opportunity to prove the case not only to his insurer or repairman, but to get a dispute resolution from the ombudsman, which is mandatory for the OSAGO insurer.

An equation with many unknowns

As a survey of car insurers conducted by Interfax-AFI showed, they are extremely interested in the adoption of this law, but so far no one can predict how unprofitable OSAGO will actually behave when switching to in-kind payments.

Experts do not rule out that repair costs, taking into account the replacement of old parts with new ones, will increase by an average of 20-28%. Still, they hope that paying without taking into account depreciation is more profitable than satisfying the growing appetites of intermediaries.

V. Skvortsov, General Director of IC AlfaStrakhovanie, believes that the attention of insurers is focused on the wording of the bill for the second reading. It is important that as a result of the revisions, the provisions of the draft law, as amended by OSAGO, on payments in kind, do not turn into the opposite in meaning.

The next challenge for OSAGO insurers is to establish contractual relationships with repairers. At the same time, it will be necessary to agree on the implementation of high-quality repairs on time with a group of new players in the repair business. And this is due to entering another target affiliate segment. Today, car hull insurance mainly insures fairly new cars with little wear and tear, which are repaired at authorized services, V. Skvortsov explained.

Another challenge for the Insurance Company is to ensure control over the fulfillment of repair conditions, since the legislator makes the insurer liable to the consumer. Already today, insurers are analyzing the possibilities of building barriers in the way of those who, having lost their sources of cash profit on insurance payments, are preparing to "sue" the IC on the quality of repairs and receive rewards and fines from companies.

At present, according to the data provided by the Deputy Chairman of the Central Bank V. Chistyukhin in the State Duma, one third of the regions are in the zone of high unprofitability for OSAGO. In 15 regions in 2016, a system of forced sales of OSAGO policies was introduced for insurers. The scheme operates on the principle of a lottery, it was developed by the PCA together with the regulator. Sales of OSAGO policies through the "single agent" system in problem regions alleviated, but did not cure, the deficiency disease. The availability of OSAGO services in such territories is still unsatisfactory. People sign up in queues to buy OSAGO policies and go to check in for several days, just like in Soviet times.

It is expected that the topic of policy availability will completely become a thing of the past, since from January 1, 2017, the requirement of the OSAGO law on mandatory and uninterrupted sales of electronic policies by insurers comes into force. Insurers win, but insurers expect new problems. Losses concentrated locally in certain regions will begin to be redistributed throughout the country. The Internet has no borders, and the CMTPL policy can be guaranteed to be bought from any region of the country. As the PCA statistics showed, since the introduction of voluntary sales of CMTPL electronic policies, an increased demand for remote conclusion of contracts has been shown precisely from the regions favored by scammers. Therefore, insurers are convinced, it is necessary to move away from cash payments.

Discovery of "life"

In the early 2000s, the statistics of the Russian insurance supervision noted an unprecedented increase in life insurance premiums. But actually, this whole story had nothing to do with such a business: organizations and insurers mastered tax evasion schemes when paying salaries to employees through the use of life insurance tools. Policies were issued with a minimum validity period, and payments on them went to the salaries of clients' employees. Through the efforts of the Federal Insurance Supervision Service, this "Potemkin village" was liquidated. The volume of life insurance fees fell sharply, business began to develop according to the classical canons, but slowly. Foreign investors lost hope of waiting for the flourishing of life insurance in Russia and of interest in strategic participation in the capital of national companies.

For the second year in a row, against the backdrop of the ongoing economic crisis, the fall in credit insurance, and austerity by households, the country suddenly showed a rapid increase in life insurance premiums. It is expected that by the end of 2016, the figure will be three times higher than the growth rate of premiums in the insurance market as a whole. In 2015, a young Sberbank company specializing in life insurance became the segment's flagship: sales of policies went through the Sberbank network. In 2016, all banks actively cooperated with life insurers.

An increased increase in fees in recent years has been noted precisely in investment life insurance programs, where, compared with the classics of the genre - long-term life insurance - the risk component is insignificant. Policyholders here rely on investment income, and not on good protection of life and health. And again, increased demand, as it were, bypasses the most powerful aspects of the classic life insurance business, which, according to all the canons, does not promise increased income to the insured.

As the head of Rosgosstrakh Zhizn, Alexander Bondarenko, explained to Interfax-AFI the phenomenon of a sharp increase in fees in the segment, “in this case, two factors converged. life insurance.Insurers provide banks with a stable commission income, which is higher than the margin that the bank will earn on the client's money.A client who agrees to this option, under favorable circumstances, in turn, can earn more income on investment insurance than on bank deposits ".

In addition, Bondarenko said, “the sale of investment instruments through banks is generally a very logical thing. In the mentality of a Russian person, the idea of getting to know the financial system is associated with the word “bank.” A client starts from opening a bank account, from placing a deposit. financial services and services. Therefore, the banking sales channel exists and will be very successful in the implementation of complex investment products."

The deposit base of Russian commercial banks reaches 20 trillion rubles, the volume of life insurance premiums predicted for the year will be about 270 billion rubles. No matter how dynamically the latter indicator develops, it is 1.35% of the first. Thus, according to experts, the expansion of opportunities for life insurers is practically unlimited, despite the fact that rates in the financial market will continue to fall. However, life insurers intend to use the market boom in the industry to establish a culture of long-term classic life insurance.

For its part, as Igor Zhuk, head of the insurance market department of the Bank of Russia, said in one of his public speeches, the regulator took care of the issue of creating guarantees for holders of investment life insurance policies. "Private bank depositors have DIA guarantees, while the owners of such policies have nothing," Zhuk said. He explained to journalists that "guarantees can be created not in the form of creating a similar fund, but, for example, in developing a stricter supervision over the activities of such insurance companies."

Life insurers continue to successfully and consistently uphold the principle of equalizing conditions for their clients and clients of non-state pension funds under comparable programs. A range of alignment solutions tax regime for players from neighboring segments were adopted in 2016.

Improve CHI

Compulsory health insurance insurers (CHI) in 2016 headed for closer interaction with the insured. This topic has been repeatedly discussed with industry departments and legislators, including the Ministry of Health of the Russian Federation and the Federal Compulsory Medical Insurance Fund, with representatives of the Council of Federations. The Ministry of Health set the task of improving the service for citizens, improving the quality of services provided by compulsory medical insurance insurers.

On behalf of the Ministry of Health and the Compulsory Medical Insurance Fund, the institution of insurance representatives began to operate in Russia from the middle of the year, insurers strengthened units to advise citizens on compulsory medical insurance. Sergey Plekhov, Deputy General Director of JSC SOGAZ-Med, recalled in an interview with Interfax-AFI that over the past year, 3,000 specialists in the market as a whole have been trained. Insurance representatives explained the rights of the insured, fixed by law, the procedure for providing free medical care and its terms, the procedure for choosing medical institutions.

As part of their core business, insurers continued to issue and replace compulsory medical insurance policies for citizens, and updated the all-Russian register of citizens insured under compulsory medical insurance. They continued to improve the system for examining the validity of invoices issued by medical institutions in the CHI system for services rendered to the population, and issued fines to medical institutions for violations. According to the statistics of the Bank of Russia, for 9 months of 2016, the all-Russian "client base" of compulsory medical insurance insurers amounted to about 146 million people. Of these, 112 million people were provided with CHI policies by ten leading health insurers.

An unexpected injustice for compulsory medical insurance insurers last year seemed to be the appearance at the end of December of the report of the Accounts Chamber of the Russian Federation on the results of checking the effectiveness of their work for 2014-2015 and the beginning of 2016. The report drew conclusions about the inefficiency of the activity of compulsory medical insurance insurers, questioned the expediency of paying for their services, although there were no violations in such payment, everything was done according to the law on the provision of medical care in the Russian Federation. Nevertheless, the auditors estimated the amount of expenses for the activities of insurers at 30 billion rubles, and such budget expenses were also not considered effective. In particular, it seemed strange to the inspectors that 43% of the claims were made by compulsory health insurance insurers on formal, as it seemed to the auditors, signs.

In an interview with Interfax-AFI, the President of the ARIA, Igor Yurgens, suggested that “the dissatisfaction with compulsory medical insurance insurers, provoked by a number of representatives of the medical industry, may just be due to the activity of inspections of insurers in the work of medical institutions. Naturally, not everyone likes their control powers However, we understand what the reduction in control over the provision of medical services to citizens leads to."

“We do not punish anyone for bad handwriting,” Dmitry Kuznetsov, head of the Interregional Union of Medical Insurers, told reporters, commenting on the conclusions of the Accounts Chamber. on submitting bills for medical services not rendered to citizens. Insurers are obliged to block payment until the situation is clarified. If the questions that have arisen during the examination are removed, the bills are re-issued and paid."

The head of the union added that, according to the law, compulsory medical insurance insurers received 20 billion rubles as fines and expenses for doing business for the period studied in the report, and not 30 billion rubles, as the inspectors calculated. In 2015 alone, these companies returned 67 billion rubles to the compulsory health insurance system based on the results of identified violations. State Insurer System - Federal CHI fund- supported the CHI insurers as their agents, agreed with their arguments and challenged the conclusions of the Accounts Chamber of the Russian Federation.

Since 2017, MHI insurers have been preparing to launch two new phases of patient protection, which involve the organization of in-depth consultations for industry professionals on medical issues. The Compulsory Medical Insurance Fund announced in the last days of December that "insurance medical organizations will send out almost 70 million SMS and letters to insured citizens in 2017 with a reminder of medical examinations. A large-scale campaign to inform the population about the need to undergo medical examinations, medical insurers begin as part of the start of work in January 2017 insurance representatives of the second level, whose functionality also includes a reminder to owners CHI policies on passing a preventive examination. Next year, according to the fund, medical examinations are planned for 23 million insured citizens.

The head of the ARIA, I. Yurgens, recalled that from January 1 next year, the requirement of the law to increase the minimum level of authorized capital of compulsory medical insurance insurers from the current 60 million rubles to 120 million rubles comes into force. In developing the topic, Plekhov clarified that as of December 14, 2016, out of 51 CHI insurers, most companies have already fulfilled this requirement. 4-5 companies will have to decide.

As previously reported, in 2016, the largest transaction in the segment took place: VTB Insurance acquired ROSNO-MS, in December there was information about the possible acquisition by members of the RESO group of the OMS insurer of the Uralsib insurance group. As a result of transactions, the concentration in the segment may increase in 2017. Inorganic growth in compulsory medical insurance of the VTB insurance group will lead to the fact that a third of those insured under compulsory medical insurance in the Russian Federation will be under its care. According to forecasts, the number of citizens insured under compulsory medical insurance after the merger will reach 45-50 million people.

Additional capitalization will be required by compulsory medical insurance insurers not only to strengthen financial stability, but also when introducing insurance principles into practice in the future. Such innovations in the system have been discussed for more than a year, the discussion will continue in 2017.

"VSS, together with compulsory medical insurance insurers, is preparing proposals for the government on the phased introduction of insurance principles into the compulsory medical insurance system, work will continue from the beginning of next year," the president of the VSS told Interfax-AFI. the principle of free medicine (everything, for everyone and free of charge) the state has no money.This means that the practice of additional payments to doctors for services in budgetary medical institutions will expand, the availability of services in the system will decrease.The society will have to develop new approaches that will be understandable and fair, it will be necessary to introduce insurance principles into the CHI system. But the main reforms will, of course, begin in the medical sector, and insurers will follow them."

The plans of the State Duma for the next year include amendments to the legislative provisions governing compulsory medical insurance. Also on the agenda are several more bills, including home insurance against emergencies, amendments to the law on compulsory liability insurance of carriers to passengers. In addition, immediately after the January holidays, the deputies intend to continue discussing amendments to the law on OSAGO.