Russian reinsurers face a number of domestic challenges along with strong competition from the international market. Intelligent Insurer investigates.
Following periods of economic and social volatility following the fall of the Soviet Union, Russia has once again risen to be a major economic powerhouse. Economic growth has led to continued development of Russia’s insurance and reinsurance sectors, which in turn has enabled companies to take on more risk, which ultimately has aided their growth.
Therefore it is important that while Russia continues to grow economically, it also works to create conditions that allow the insurance and reinsurance sectors to flourish, which in turn will aid growth.
While some steps have already been taken to achieve this, there are still many challenges to overcome, especially for insurers servicing the domestic market, one being the relatively low standard of living, which then leads to low insurance penetration, according to Vladimir Arefyev, deputy director at Alterisk Insurance Brokers.
Russia, AM Best, Alterisk Insurance Brokers, Moscow Re, Ingosstrakh Insurance Company, Emerging markets