Russia's life insurance market is among the most underdeveloped in BRIC region, with the market contributing only 2.2% of the overall written premium for the total insurance industry in 2010, according the BRICdata report.
The report lists the absence of tax benefits on life insurance products, the inert private pension system and lack of trust over substantial benefits accruing from long-term insurance products among the Russian population as the primary impediments to the growth of Russia’s life insurance market.
Notwithstanding all these factors, there are definitely considerable opportunities for fuelling growth of Russia’s currently ailing life insurance market.
This report indicates that Russia’s life insurance market growth will be strengthened by the sale of individual life insurance products, with an increase in minimum authorised capital requirements would give the much needed fillip to the life insurance market.
Over 66% of the total Russia’s life insurance industry was accounted by the individual life insurance segment in 2010, whereas 14.5% of the market share was occupied by the group life insurance segment, according to the report.
Following Russia’s entry to the World Trade Orginsation (WTO), increase in foreign direct investment (FDI) limits is expected, which would give the much needed impetus to the life insurance market of the country, the report stated.
The report enumerates the growth opportunities and industry dynamics within seven key product categories, and would enable interested parties to gain insights into key regulations governing the Russian insurance industry.
The full report ‘Life Insurance in Russia, Key Trends and Opportunities to 2015’ is available from BRICdata. Click here for more details.