03.06.2016, 07:35
Life Insurance Boosts Insurance Market in 1Q of 2016
OREANDA-NEWS. The insurance premiums are up by 12.8% against the respective period of the last year and exceed 300 billion rubles. According to the reporting data, life insurance segment based on the development of investment and savings schemes contributed most to the market growth rates.
Insurance contributions grew by 77.3% against those over the same period of the last year. This segment will remain a crucial booster for the development of the insurance industry in the years to come due to insignificant penetration and a lot of potential. This is of prime importance under OSAGO (compulsory motor third party liability insurance) slowdown, because OSAGO maintained the insurance market in 2015 by increasing the insurance rates.
Despite high annual growth rates are still in place, as early as in 2016 Q1 OSAGO’s contribution to the increase of total insurance premiums was down considerably. Besides, the effect of the rate increase will be over within the first three months of 2016, annual growth rates for OSAGO will slow down dramatically starting from the second quarter.
Notably, the increase in the OSAGO insurance indemnities still prevails in the total amount of indemnities, which grew by 3.7% to 117.1 billion rubles over the year.
In 2016Q1 the insurance business tended to suffer less losses both because of cutting costs of doing business and reducing losses by core types of insurance. Combined loss ratio that demonstrates the performance of the insurance business was down to 93.2%. Besides, a heavy return on investments made it possible for the insurers to gain profit of 47.5 billion rubles. The insurance market assets were over 1.6 trillion rubles on Q1 results, whereas the ratio of insurance company assets to GDP remained at 2%.
Insurance contributions grew by 77.3% against those over the same period of the last year. This segment will remain a crucial booster for the development of the insurance industry in the years to come due to insignificant penetration and a lot of potential. This is of prime importance under OSAGO (compulsory motor third party liability insurance) slowdown, because OSAGO maintained the insurance market in 2015 by increasing the insurance rates.
Despite high annual growth rates are still in place, as early as in 2016 Q1 OSAGO’s contribution to the increase of total insurance premiums was down considerably. Besides, the effect of the rate increase will be over within the first three months of 2016, annual growth rates for OSAGO will slow down dramatically starting from the second quarter.
Notably, the increase in the OSAGO insurance indemnities still prevails in the total amount of indemnities, which grew by 3.7% to 117.1 billion rubles over the year.
In 2016Q1 the insurance business tended to suffer less losses both because of cutting costs of doing business and reducing losses by core types of insurance. Combined loss ratio that demonstrates the performance of the insurance business was down to 93.2%. Besides, a heavy return on investments made it possible for the insurers to gain profit of 47.5 billion rubles. The insurance market assets were over 1.6 trillion rubles on Q1 results, whereas the ratio of insurance company assets to GDP remained at 2%.
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