Analysis of indicators of insurance companies “LIFE” segment for 6 months of 2021
As we wrote earlier in the article in the article “insurance market in Russia 2021: the results of the first half of 2021”, the insurance market showed an increase of 21% in the first half of the current year regarding the results of the same period of 2020. Today we will analyze the indicators of insurers who have a license to carry out life insurance, so-called “Life” segment.
According to the results of the first two quarters of the 2021, the company’s “Life” segment gathered awards in the amount of 252.54 billion rubles, which turned out to be 29% higher than the indicators of the same period last year. The volume of made payments by companies has also increased by 59.4% (+53.68 billion rubles) to 143.99 billion rubles.
|6 months 2021||6 months 2020||Change, mln. RUB||Change, %|
|Signed premiums, million RUB||252,540||196,478||56,063||28.5%|
|Made payments, million RUB||143,990||90,307||53,683||59.4%|
Thus, the level of payments increased by 11 pp. and reached 57% in the first half of 2021. In more detail, the causes will consider below.
Top 10 of the Life segment companies in the first half of 2021
The volume of collected premiums of the Top-10 companies amounted to billion rubles in the first half of 2021 (against billion rubles a year earlier).
Despite the growth of fees, the concentration of top 10 of companies has not changed and preserved at 87%. The list of companies’ pioneers has changed, about it below.
|№||The volume of collected premiums by insurance companies of life segment, mln RUB||1st half year 2021||1st half year 2020||Changes, mln RUB||Changes, %||Quota in 1st half year 2021|
|1||LLC Insurance Company “Sberbank life insurance”||63,999||46,276||17,724||38%||25%|
|3||IC “SOGAZ – Life”||37,044||34,635||2,409||7%||15%|
|4||LLC “Insurance company “Renaissance life”||26,265||17,336||8,929||52%||10%|
|5||LLC “Insurance Company “Rossgostrakh Life”||11,825||9,511||2,313||24%||5%|
|6||LLC “Capital life insurance”||10,207||10,007||200||2%||4%|
|7||LLC Insurance Company “Alliance Life”||9,285||7,895||1,390||18%||4%|
|8||LLC “Societe Generali Life Insurance”||5,453||5,853||-401||-7%||2%|
|9||LLC “RSHB-Life Insurance”||5,020||6,050||-1,030||-17%||2%|
|10||LLC “IC “Ingosstrakh-Life”||4,767||2,289||2,478||108%||2%|
As in the previous period, the company Sberbank Life Insurance LLC collected the greatest amount of insurance premiums – 64 billion rubles, showing an increase of 38% (+17.72 billion rubles) regarding the results of the same period last year. This result was achieved by increasing the fees on Accumulative life insurance (+8.23 billion rubles), Credit life insurance (+5.49 billion rubles) and investment life insurance (+5.88 billion rubles). Accident and diseases life insurance, on the contrary, showed a decline in fees for 1.71 billion rubles. However, it is worth remembering that the past couple of years the insurer showed a negative dynamics, which was due, first of all, with a decrease in the fees on investment life insurance.
The obtained by LLC “AlfaInsuranceLife” insurance premium increased by 49% (+15.05 billion rubles) and amounted to 45.98 billion rubles, raising the company for second place in terms of the number of fees. The company significantly increased the fees for the insurance of the Credit life insurance (+7.64 billion rubles) and investment life insurance (+6.34 billion rubles).
The company “IC Sogaz-Life” LLC has shifted to 3rd place, increased the number of fees by 7% (+2.41 billion rubles) and reached 37.04 billion rubles. Investment life insurance was also the main growth driver (+1.87 billion rubles). Recall that last year’s growth in the fees of this insurer was associated with the accession of the portfolio of the acquired insurer LLC “VTB Life Insurance” LLC.
The main channel of sales, according to our assessment, the VTB Bank is still remaining. The amount of insurance premiums LLC “SK Renaissance Life” increased by 52% (+8.93 billion rubles) and amounted to 26.27 billion rubles. The growth was achieved by the Credit life insurance (+7.65 billion rubles) and the investment life insurance (+1.47 billion rubles).
The company LLC Rosgosstrakh Life rose to 5th place with fees of 11.83 billion rubles – the growth was 24% (+2.31 billion rubles). Investment life insurance (+2.89 billion rubles) was the main driver growth driver. It is important to note that despite the main sales channel “Banking”, the insurer holds good diversification of his portfolio. According to our assessment, about 50% of the direction of sales through credit organizations falls on market banks, and not the Public Joint Stock Company Bank “Financial Corporation Otkrytie”.
The fees of LLC “Capital Life Insurance of life rose by 2% (+200 million rubles) and amounted to 10.21 billion rubles. The greatest growth was shown by the Voluntary medical insurance (+327 million rubles), and the greatest decline in the investment life insurance (-536 million rubles). According to our assessment, this happened in connection with the payments of the previously completed contracts that had completed 3-5 years. Since the main sales channel at the Agency Insurer, as we previously talked about in the author’s article in more detail, it is quite difficult to reimburse such drop-down volumes of cumulative life insurance and investment life insurance with a lower “check”. From a positive: the insurance company showed a small increase in 2% fees, although it turned out to be lower than the average in 29%.
The volume of Awards LLC IC Alliance Life increased by 18% (+1.39 billion rubles) and reached 9.29 billion rubles – such indicators were achieved due to the growth of premiums on the investment life insurance (+1.12 billion rubles).
Despite the decline in the fees of 7% (minus 401 million rubles), the company “Societe Generali Life Insurance” LLC rose to 8th place and collected 5.45 billion rubles. During the first half of the year 2021, the Company collected less than 450 million rubles on the investment life insurance, due to which the general fees of the company decreased. The main sales channel is a banking, and at least 90% of all the premiums the insurer receives, for our information, from PJSC Rosbank.
The LLC “RSHB-Life Insurance” fell by 17% (minus 1.03 billion rubles) and amounted to 5.02 billion rubles – such a decrease is due to a reduction in fees on investment life insurance by 1.36 billion rubles. Thus, the company has shifted from 8 to the 9th place, apparently, did not have time to modify its insurance products to new market conditions. The main sales channel, according to our assessment, by more than 90%, the Bank ” RSHB “.
The Company LLC “SK Ingosstrakh-Life” was the greatest increase regarding their indicators – fees in the first half of 2021 increased by 108% (+2.48 billion rubles) and reached 4.767 billion rubles. Thanks to the growth of fees, the company rose to 4 places up and entered the top 10 insurers in terms of the signed award for half a year. The growth driver was an increase in Accumulative life insurance fees from 249 million rubles in the first half of 2020 to 1.618 billion rubles in the first half of 2021 – an increase of more than 500%. This indicator distinguishes the company from the rest of the market, where the growth prevails precisely on the investment life insurance.
Vladimir Chernikov, General Director of Ingosstrakh-Life, said: “A steady increase in the accumulative life insurance award confirms that the population has a high need for a reliable investment tool for its own future. People are ready to invest in it, the numbers speak for themselves. Ingosstrakh-Life supports customer demand, we constantly conduct work on improving our long-term accumulation products. Last year, on the background of restrictions because of the pandemic, we, following the public request for online purchases, released a fully digital proposal of accumulative life insurance “Avantage online” to the market. Recently expanded the cumulative line adapted for mass consumers the product “Avantage Comfort”, which allows you to accumulate the necessary amount with minimal investments. We update the existing programs, making them more convenient and more profitable for customers, we develop new proposals. It is important for us that each client receives that product that will answer for its needs. ” “We see the big potential of the accumulative life insurance, but to implement it, the popularization of accumulative life insurance is necessary. Often, people simply do not know about such a tool, and, having faced it by chance, do not rush to use, because it is elementary not understand how it works. In addition, this also consists of one of the important tasks – to convey to our clients information about that there is such a functionality, talking about its advantages – and they are indisputable”.
|№||The volume of cash payments by insurance companies of life segment, mln RUB||1st half year 2021||1st half year 2020||Changes, mln RUB||Changes, %|
|1||LLC Insurance Company “Sberbank insurance”||35,901||19,541||16,360||84%|
|3||LLC “Insurance company SOGAZ-life”||15,671||7,899||7,771||98%|
|4||LLC “Insurance company “Renaissance life”||6,616||2,637||3,979||151%|
|5||LLC Insurance Company “Rossgostrakh Life”||882||274||609||222%|
|6||LLC “Capital life – life insurance”||15,593||19,972||-4,379||-22%|
|7||LLC Insurance Company “Alliance Life”||4,467||3,153||1,315||42%|
|8||LLC “Societe Generali Life Insurance”||3,025||1,698||1,326||78%|
|9||LLC “RSHB-Life Insurance”||257||45||212||474%|
|10||LLC Insurance Company “Ingosstrakh life”||4,756||3,398||1,358||40%|
The top 5 insurers (in terms of insurance premium) carried out more than 60% of all payments in the market.
Payments 9 companies from the top 10 list have increased in the first half of 2021 relative to the results of the same period of 2020. Of all the companies of the first tens of only LLC “Capital Life Insurance of Life” demonstrated their reduction by 22% (-4.38 billion rubles).
|№||payout levels Insurance companies of life segment, mln RUB||1st half year 2021||1st half year 2020||Changes, p.p.|
|1||LLC Insurance Company “Sberbank insurance”||56%||42%||14%|
|3||LLC “Insurance company SOGAZ-life”||42%||23%||19%|
|4||LLC “Insurance company “Renaissance life”||25%||15%||10%|
|5||LLC Insurance Company “Rossgostrakh Life”||7%||3%||5%|
|6||LLC “Capital life – life insurance”||153%||200%||-47%|
|7||LLC Insurance Company “Alliance Life”||48%||40%||8%|
|8||LLC “Societe Generali Life Insurance”||55%||29%||26%|
|9||LLC “RSHB-Life Insurance”||5%||1%||4%|
|10||LLC Insurance Company “Ingosstrakh life”||100%||148%||-49%|
The levels of payments of all 8 companies are below 100%, i.e. The amount of insurance premiums exceeds the volume of payments. LLC “Capital life – life insurance” (153%) and LLC “IC” Ingosstrakh-Life “(100%), however, the level of payments of these companies decreased by 47 percentage points. and 49 pp respectively.
The structure of the collected premiums of the LIFE segment companies in the first half of 2021.
According to the results of the first half of the year, the total amount of accumulative premiums for life insurance + investment life insurance are 175.14 billion rubles, which in the aggregate is 69% of the general fees of the segment companies in the first half of 2021.
|Collected insurance premium by type of insurance, mln. RUB||1st half year 2021||1st half year 2020||Changes, mln RUB||Changes, %||Quota in 1st half year 2021||Quota in 1st half year 2020|
|Accumulative life insurance||74,249||60,785||13,464||22%||29%||31%|
|Investment life insurance||100,887||81,428||19,458||24%||40%||41%|
|Credit life insurance||59,272||36,191||23,082||64%||23%||18%|
|Accident and diseases life insurance||6,486||7,456||-971||-13%||3%||4%|
|Voluntary medical insurance (legal entities and individuals)||8,775||8,012||764||10%||3%||4%|
|Other types of insurance||2,872||2,606||266||10%||1%||1%|
For 6 months of 2021, the volume of collected premiums for investment life insurance increased by 24% (+19.46 billion rubles) to 100.89 billion rubles, and the accumulative life insurance increased by 22% (13.46 billion rubles) to 74.23 billion RUB compared to the same period of the previous year. The growth of accumulative life insurance and the investment life insurance is due to the following factors:
- the low base of 2020 and the restoration of consumer ability in 2021;
- the low key rate of the Central Bank and, as a result, low interest on deposits, which led to more interest in life insurance products.
Nevertheless, the Bank of Russia notes that the complaints of buyers for misselling (the introduction of customers misleading during the sale of insurance products) continue to grow. It accounts for 49.3% complaints on the investment life insurance and 14.2% on accumulative life insurance. In the first half of the year 2021, the total complaints increased by 37.8%. The main complaints, according to our assessment, occur precisely on the banking channel of sales.
The credit life insurance fees increased by 64% (+23.08 billion rubles) and amounted to 59.27 billion rubles. The main growth driver was a sharp increase in the volume of mortgage and consumer loans issued (according to the Central Bank in the second quarter, the volume of loans issued to individuals increased by 2 times).
Insurance against accidents and diseases decreased by 13% (-971 million rubles), the segments of the segment companies amounted to 6.49 billion rubles. The negative dynamics of companies licensed for life insurance is not characteristic of this type of insurance in general, where the growth was 52%, since the company LIFE segment makes the focus on life insurance products. In addition, “flowing” of fees in this type of the segment of the “Life” segment in the “Life” segment are possible, or simply competition between the “boxes” products in the banking channel of sales.
Voluntary medical insurance fees increased by 10% (+764 million rubles) to 8.78 billion rubles. The main factors of growth served to resume the demand from legal entities and individuals, as well as improving the interest of the population to their health under the coronavirus pandemic.
The amount of prisoners on Accumulative life insurance increased by 28%, according to the Investment life insurance – by 15%, on the Credit life insurance of 45%.
|Number of concluded product policies, pcs||1st half year 2021||1st half year 2020||Changes, mln RUB||Changes, %|
|Accumulative life insurance||534,333||416,740||117,593||28%|
|Investment life insurance||173,985||151,037||22,948||15%|
|Credit life insurance||2,232,584||1,542,139||690,445||45%|
|Accident and diseases life insurance||846,287||883,933||-37,646||-4%|
|Voluntary medical insurance (legal entities and individuals)||347,396||279,882||67,514||24%|
|Other types of insurance||3,381||2,908||473||16%|
In general, the number of segment agreements increased by 26% and reached 4.14 million signed insurance agreements.
|Average premiums by products, RUB||1st half year 2021||1st half year 2020||Changes, mln RUB||Changes, %|
|Accumulative life insurance||138,956||145,857||-6,901||-5%|
|Investment life insurance||579,858||539,129||40,729||8%|
|Credit life insurance||26,549||23,468||3,081||13%|
|Accident and diseases life insurance||7,664||8,435||-772||-9%|
|Voluntary medical insurance (legal entities and individuals)||25,260||28,625||-3,365||-12%|
The average contribution to the accumulative life insurance fell by 5%, most likely this happened due to the popularization of accumulative life insurance with a small insurance premium – about such a product we wrote in the article to issue a cumulative life insurance online from 200.
The average premium on the Investment life insurance rose by 8% (+40 thousand rubles). As we wrote above, buyers began to wonder more actively the life of life insurance against the background of low deposit rates.
The average Credit life insurance fee increased by 13% due to the increase in the average mortgage and consumer loans.
The structure of the payments made by the settlement of the “Life” segment of the 1st half of 2021.
The volume of payment made by the settlement of the segment companies increased by 59% over half of 2021 and reached 143.99 billion rubles.
|Amount of payments made by type of insurance, mln. RUB||1st half year 2021||1st half year 2020||Changes, mln RUB||Changes, %|
|Accumulative life insurance||18,212||11,976||6,236||52%|
|Investment life insurance||111,737||67,904||43,832||65%|
|Credit life insurance||6,994||5,241||1,753||33%|
|Accident and diseases life insurance||1,034||1,013||21||2%|
|Voluntary medical insurance (legal entities and individuals)||4,476||3,021||1,455||48%|
|Other types of insurance||6,013||4,174||1,840||44%|
The greatest amount of payments relates to investment life insurance – 111.74 billion rubles (78% of the payment of the segment). In 2021, 3-year-old agreements were signed in 2018 before the start of active misselling fight, after which the demand for products is significantly reduced, so in the future we can expect a decrease in payments.
|Number of settled cases by type of insurance, pcs||1st half year 2021||1st half year 2020||Changes, mln RUB||Changes, %|
|Accumulative life insurance||76,661||55,628||21,033||38%|
|Investment life insurance||202,150||134,844||67,306||50%|
|Credit life insurance||93,912||62,183||31,729||51%|
|Accident and diseases life insurance||26,086||29,405||-3,319||-11%|
|Voluntary medical insurance (legal entities and individuals)||494,923||382,507||112,416||29%|
The average payments on Accumulative life insurance and the Investment life insurance increased by 10%, on Voluntary medical insurance and in Accident and diseases life insurance – by 15%, and Credit life insurance decreased by 12%, which is fairly projected on the background of rapid RA.
Average payment by type of insurance, rub. 1 halfyear 2021
|Average payout by type of insurance, RUB.||1st half year 2021||1st half year 2020||Changes, mln RUB||Changes, %|
|Accumulative life insurance||237,564||215,286||22,278||10%|
|Investment life insurance||552,742||503,578||49,164||10%|
|Credit life insurance||74,474||84,278||-9,803||-12%|
|Accident and diseases life insurance||39,645||34,445||5,200||15%|
|Voluntary medical insurance (legal entities and individuals)||9,045||7,899||1,146||15%|
With insurance companies with a license to carry out life insurance was able to achieve growth of insurance premiums at 28.5% and amounted to 252.54 billion rubles in the first half of 2021, at the same time the volume of payments increased.
The list of Top 10 companies entered Ingosstrakh-Life IC, displacing the LLC “VSL – line of life”. Top 3 fees for fees amounted to Sberbank Life Insurance LLC (64 billion rubles), LLC Insurance Company “Alliance Life” (45.98 billion rubles) and LLC IC “SOGAZ – Life” (37.04 billion rubles).
In the first half of the year, 2021, signed premiums for cumulative life insurance increased by 22% to 74.25 billion rubles, on investment life insurance – by 24% to 100.89 billion rubles, on the credit life insurance – by 64% up to 59.27 billion rubles.
The positive factor, in our opinion, is the growth of the cumulative life insurance segment, however, is largely due to the banking channel.
We will follow the development of the insurance market of “life” in our analytical reviews on the information and analytical resource Calmins.com.
The article is approved by the expert of the insurance market Denis Lebedev.