Analysis of the insurance market of Russia for the first half of 2021
The Central Bank of Russia on September 3 published statistical data of Russia’s insurance companies in the first half of 2021. By tradition, in today’s article, we will look at the general indicators of insurers of both segments (LIFE and non-Life), and in the following analytical reviews, we will in more detail on each of them.
So, according to the results of the first 6 months of 2021, the Russian insurance market grew by 21% (+155.12 billion rubles) compared with 6 months of 2020 and amounted to 894.19 billion rubles. At the same time, the payment of insurance companies also increased by 29.6% (+87.79 billion rubles) and reached 384,53 billion rubles. On both indicators, the beginning of a coronavirus pandemic was found in 2020, as a result, the peak of restrictive measures fell on the second quarter of 2020.
|6 months 2021||6 months. 2020||Change mln. RUB||Change, %|
|Signed premiums, RUB mln.||894,187||739,065||155,122||21.0%|
|Payments made, RUB mln||384,528||296,740||87,788||29.6%|
|Payout to premium ratio||43%||40%|
Thus, the level of payment of insurers in the first half of the year 2021 was 43%, demonstrating an increase in 3 percentage points.
Regarding the results of the same period last year. Top 10 insurance companies in terms of grades for the first half of 2021 is presented below.
|№||Amount of collected premiums broken down by insurance companies in the non-life segment, RUB million||1 half year 2021||1 half year 2020||Change mln. RUB.||Changе, %|
|5||LLC IC «Sberbank Life Insurance»||63,999||46,276||17,724||38%|
|6||PJSC IC Rosgosstrakh||47,380||39,633||7,747||20%|
|9||LLC «SK SOGAZ-LIFE»||37,044||34,635||2,409||7%|
|10||LLC «SK» Renaissance Life»||26,265||17,336||8,929||52%|
Top 10 companies in 2021 the aggregate collected 654.98 billion rubles, which is 24% more (+125.94 billion rubles) of the first half of 2020. Thus, the concentration of the insurance market increased: the share of top 10 companies in 2021 accounts for 73%, in the 1st half of 2020, this figure was 72%.
It is noteworthy that among the companies Top-10, all insurers managed to achieve growth of fees regarding last year’s results: the minimum 7% – LLC «SK SOGAZ-LIFE» Maximum 52% – SK Renaissance LLC. More detailed analysis of the life and non-life segments companies we’ll provide in the next reviews»
Structure of the insurance market by types of insurance in the 1st half of 2021
Almost all the largest types of insurance showed growth in the first half of 2021 compared to the results of the same period of 2020. Except from the general trend was voluntary insurance of the property of legal entities and individuals.
The largest market share retains life insurance products (Accumulative life insurance + Investment life insurance + Credit life insurance), which accounts for 234.41 billion rubles (26% of the total number of fees). Auto insurance fees (OSAGO + CASCO) amounted to 202.65 billion rubles (23% of the total number of fees). Consider in more detail every type of insurance.
|The volume of collected premiums by type of insurance, mln RUB.||1 half year 2021||1 half year 2021||Change mln. RUB.||Change, %||Market share 2021||Market share|
|Accident and diseases life insurance||132,956||87,735||45,220||52%||15%||12%|
|Voluntary medical insurance (legal entities and individuals)||127,172||116,804||10,368||9%||14%||16%|
|OSAGO (third party liability insurance)||109,462||102,961||6,501||6%||12%||14%|
|Investment life insurance||100,887||81,428||19,458||24%||11%||11%|
|CASCO (fully comprehensive car insurance)||93,188||75,545||17,643||23%||10%||10%|
|Accumulative life insurance||74,254||60,788.55||13,465||22%||8%||8%|
|Voluntary property insurance of legal entities||65,632||67,732||-2,100||-3%||7%||9%|
|Credit life insurance||59,272||36,191||23,082||64%||7%||5%|
|Voluntary property insurance of individuals||35,786||30,267||5,520||18%||4%||4%|
|Financial and business risks insurance||27,500||19,999||7,501||38%||3%||3%|
|Other types of insurance of enteties property (including «marine», «avia», «cargo», «railway» и «agricultural» insurance)||25,477||22,190||3,287||15%||3%||3%|
|Voluntary motor third party liability insurance||21,520||17,324||4,197||24%||2%||2%|
|State life and health insurance of military personnel and those equated to them||16,876||17,012||-136||-1%||2%||2%|
|Other types of insurance||4,203||3,089||1,115||36%||0%||0%|
The volume of collected insurance premiums from accidents and diseases increased by more than 2 times – by 52% (+45.22 billion rubles) in the first half of 2021 relative to the results of the first half of 2020. Also, the Credit life insurance increased by 64% (+23.08 billion rubles) and reached 59.27 billion rubles. A significant part of insurance insurance fees and diseases falls on the banking channel of sales, which, according to the comments of the Central Bank, dictates conditions in these types of insurance: on sales of Credit life insurance through banks accounts for 87%, and for the Accident and diseases life insurance – 78,5%. The growth of fees for these products is mainly due to the fact that in the second quarter of 2021 there was an increase in loans issued.
The charges of insured companies for voluntary health insurance (VHI) – growth by 14% (+10.37 billion rubles) and reached 127.17 billion rubles. The growth of the collected premiums caused by the growth of interest in the products of voluntary life insurance in retail and corporate segments. Also an additional incentive to the growth of fees was the popularization of the insurance products from coronavirus and the consequences of vaccination.
The amount of signed premiums on the mandatory auto insurance OSAGO (third party liability insurance) increased by 6% (+6.50 billion rubles) to 109.46 billion rubles. The growth, as in the previous quarter, is due to a number of factors:
- Individualization of tariffs that occurred in September 2020, which led to an average contribution of 2%,
- expanding the tariff corridor in the third quarter of 2020,
- increased struggle with fake policy of OSAGO,
- an increase in the availability of the policy Upgrading directories with the cost of spare parts of cars, which also led to an increase in the average contribution of the CASCO (fully comprehensive car insurance).
It is expected that the CASCO (fully comprehensive car insurance) fees in the third quarter 2021 will again show growth, due to the updated reference books for parts, as well as a new methodology for calculating compensation, which entered into force in September 2021.
The collected awards on voluntary auto insurance CASCO increased by 23% (+17.65 billion rubles) and reached 93.19 billion rubles. This result was achieved by the growth of sales of new cars, the cost of spare parts, the shares of corporate clients in the insurers’ portfolios for which the cost of CASCO is traditionally higher than for individuals.
After a long reduction in the fees on investment life insurance during the previous periods, the signed investment life insurance premium in the first half of 2021 increased by 24% (+19.46 billion rubles) and amounted to 100.89 billion rubles. In addition to the low level of the premiums of the past period, low rates on bank deposits affected the growth of fees, as a result, banks began to more actively sell the products of investment and accumulative life insurance.
Similar factors have influenced the growth of accumulative insurance, which increased by 22% (+13.47 billion rubles) to 74.25 billion rubles.
The volume of signed premiums for voluntary insurance of the property of legal entities decreased by 3% (-2.10 billion rubles) and amounted to 65.63 billion rubles. However, despite the decline in fees in the semi-annual period, the segment began its recovery, and the property insurance of legal entities harges in the second quarter of 2021 showed an increase in the second quarter of 2020 by 16% (+3.92 billion rubles.
Premiums for other types of insurance of property of legal entities (including “marine”, “avia”, “cargo”, “railway” и “agricultural” insurance), on the contrary, showed an increase of 15% (+3.29 billion rubles) to 25.48 billion rubles.
Properties for voluntary insurance of legal enteties and individuals increased by 18% (+5.52 billion rubles) and reached 35.79 billion rubles. According to the comments of the Central Bank, the growth of fees is due to the restoration of the consumer ability of citizens, as well as the low base in the second quarter of 2020.
Insurance of business and financial risks continued to restore, so the volume of collected awards increased by 38% (+7.50 billion rubles) and amounted to 27.50 billion rubles. Civil liability voluntary insurance fees increased by 24% (+4.20 billion rubles) and reached 21.52 billion rubles.
The fees for State life and health insurance of military personnel and those equated to them did not change and amounted to 16.88 billion rubles.
The table below provides information on the number of contracts concluded in the first half of 2021 and 2020.
|Average premium (products), RUB.||1 half year. 2021||1 half year. 2020||Changе, руб.||Changе, %|
|OSAGO (third party liability insurance)||5,551||5,441||111||2%|
|VMI (legal entities and individuals)||18,636||18,707||-72||0%|
|Insurance against accidents and illnesses||5,600||5,225||375||7%|
|CASCO (fully comprehensive insurance)||36,654||31,007||5,647||18%|
|Accumulative life insurance||138,965||145,867||-6,902||-5%|
|Inveswtment life insurance||579,858||539,129||40,729||8%|
|Voluntary property insurance of legal entities||271,885||388,010||-116,124||-30%|
|Credit life insurance||26,549||23,468||3,081||13%|
|Voluntary property insurance of individuals||1,742||1,614||128||8%|
|Financial and business risks insurance||2,563||3,269||-706||-22%|
|Voluntary motor third party liability insurance||3,689||3,633||56||2%|
|Other types of insurance of entities property (including “marine”, “avia”, “cargo”, “railway” и “agricultural” insurance)||8,492||15,666||-7,174||-46|
In the first half of the year 2021, the average contribution of CASCO increased by 18% (+5.647 rubles) and amounted to 36.654 rubles. Such a significant change occurred as a result of an increase in sales of new cars, after a sharp drop in the second quarter of 2020.
The greatest decline in the average contribution is to corporate insurance:
- voluntary property insurance of legal entities is a decrease of 30%;
- Other types of property insurance (including “marine”, “avia”, “cargo”, “railway” и “agricultural” insurance) – a decrease of 46%;
- Insurance of business and financial risks – a decrease of 22%.
The results of the company’s «life» segment of the company lifting licensed lifetime, collected 252.54 billion rubles of insurance fees in the first half of 2021, which is 29% more than the results of the same period of 2020.
|№||Amount of collected premiums broken down by insurance companies in the life segment, RUB million||1 half year 2021||1 half year 2020||Change mln. RUB.||Changе, %|
|1||LLC IC «Sberbank Life Insurance»||63,999||46,276||17,724||38%|
|3||LLC «SK SOGAZ-LIFE»||37,044||34,635||2,409||7%|
|4||LLC «SK» Renaissance Life»||26,265||17,336||8,929||52%|
|5||LLC «IC «Rossgostrakh Life»||11,825||9,511||2,313||24%|
|6||LLC «Capital life – life insurance»||10,207||10,007||200||2%|
|8||LLC «Societe Generali Life Insurance»||5,453||5,853||-401||-7%|
|9||LLC «RSHB-Life Insurance»||5,020||6,050||-1,030||-17%|
|10||LLC «IC «Ingosstrakh Life»||4,767||2,289||2,478||108%|
The greatest growth of fees was shown by LLC IC «Sberbank Life Insurance» (+ 38% or +17.72 billion rubles), LLC «AlfaInsurance-Life» (+ 49% or +15.05 billion rubles), LLC «SK» Renaissance Life»
For the first time in Top-10, LLC «IC «Ingosstrakh Life», which more than doubled fees and reached fees in the amount of 4.77 billion rubles.
In more detail, the results of the segment insurance companies we will consider in our next analytical review.
The results of the segment of the segment «Not Life»
The volume of the collected premiums of the segment of the segment «not life» increased by 18% (+99.06 billion rubles) and reached 641.65 billion rubles.
|№||Amount of collected premiums by insurance companies in the non-life segment, RUB million||1 half year 2021||1 half year 2020||Change mln. RUB.||Changе, %|
|5||PJSC IC Rosgosstrakh||47,380||39,633||7,747||20%|
|7||JSC «Renaissance Insurance Group»||20,590||16,499||4,091||25%|
|8||LLC «IC «Soglasiye»||17,700||15,451||2,249||15%|
|9||JSC «Tinkoff insurance»||10,981||9,008||1,973||22%|
|10||LLC IC «Sberbank Insurance»||10,435||8,864||1,571||18%|
All insurers from the Top-10 list showed growth in the range from 18% (IC «VSK») up to 25% (JSC «Renaissance Insurance Group»).
In more detail, the results of the insurers of the Non-Life segment we will also consider in our following analytical reviews.
Summing up the first half of 2021
Summing up, it can be noted that the insurance market has a large «margin of safety», having passed the beginning of a pandemic without a significant reduction and reaching growth in 21% (in semi-annual) a year later. Thus, the amount of signed premiums amounted to 894.19 billion rubles, and the amount of payments made – 384.53 billion rubles.
Life insurance companies showed growth of 29%, and the company of the insurance «not life» reached 18% of growth.
In general, an increase in the increase in fees was achieved by all types of insurance, with the exception of insurance of property of legal entities, where the decline was 3% on the results of the same period last year.
Detailed statistics on the insurance market are also presented on our website in the heading of the market dynamics in the infotablicis by the expert of the insurance market, Maxim Chernov, which also took into account the fees of companies that were revoked by the license of the Bank of Russia to carry out insurance activities.
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Article Obtained by expert insurance market Denis Lebedev