Swiss Re bets on insurtech to boost Russian insurance market

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.