Insurances - Russia | Statista Market Forecast

The Insurances market in Russia is expected to reach a projected market size (gross written premium) of US$19.19bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$13.91bn in 2024.
The average spending per capita in the Insurances market in Russia amounts to US$133.30 in 2024.
When compared globally, it is evident that the United States will have the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 1.57%, resulting in a market volume of US$20.74bn by 2029.
In global comparison, the United States will generate the most gross written premium, amounting to US$3.8tn in 2024.
Russia's insurance market is experiencing a surge in demand for cyber insurance policies due to increasing cyber threats and the growing digitalization of businesses.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

Over the past decade, the Insurances market in Russia has shown a steady growth trajectory, reflecting the increasing awareness among consumers about the importance of insurance coverage.

Customer preferences: Russian consumers have been increasingly inclined towards purchasing a variety of insurance products to safeguard themselves against unforeseen events. The growing middle class in Russia has led to an increase in disposable income, allowing individuals to allocate funds towards insurance policies for health, property, and life coverage.

Trends in the market: One of the prominent trends in the Russian insurance market is the digital transformation of services. Insurers are leveraging technology to enhance customer experience, streamline processes, and offer innovative products. Moreover, there is a notable shift towards personalized insurance solutions tailored to individual needs and risk profiles.

Local special circumstances: The regulatory environment in Russia plays a significant role in shaping the insurance market. Strict compliance requirements and regulations set by the government influence the operations of insurance companies and the overall market dynamics. Additionally, the geopolitical landscape and economic conditions in Russia impact consumer confidence and purchasing power, thereby influencing the demand for insurance products.

Underlying macroeconomic factors: The economic stability and growth prospects of Russia have a direct impact on the insurance market. As the economy expands, the demand for insurance products is expected to rise, driven by increased consumer spending and investments. Furthermore, factors such as inflation rates, interest rates, and unemployment levels influence the affordability and uptake of insurance policies among the population.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.