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Swiss Re expects innovative insurtech products and distribution methods to boost insurance sales in Russia after subdued economic growth has slowed expansion.
"The Russian insurance market is in a stressed state,” says Christian Engeln, Swiss Re market head Russia & CIS.
“The motor third-party liability business is a drag for many companies. Rates are fixed in motor third-party liability and the loss burden is increasing mainly due to higher activity from claims lawyers in some regions in Russia, perhaps a dysfunction of the legal system. There is also less demand from commercial insurance buyers than in the past, particularly in engineering and marine, as a result of cuts in insurance budgets. It is a difficult operating environment, but we believe it will bottom out this year."
Due to a low oil price and sanctions implemented by western countries after the Russian annexation of Crimea, the Russian economy slid into a recession.
Insurtech, Growth, Insurance, Reinsurance, Russia, Nicola Rautmann, Christian Engeln