Page 33 - Turkinsurance Digital Magazine

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Rates of Increase in Life Insurance Premium Collections (%)

Other 31,40%

Credit Life Insurance 67%

Cumulative Life Insurance 25,10%

Investment Life Insurance 20,90%

quarter of this year, while the premium production of companies There is a growth in life insurance
reached 434.4 billion rubles. ARIA also provided important data in its statement outlining
the performance of life insurers for the first half of 2021. At the
In the report announced that the premium volumes generated by end of the first half of 2021, total life insurance premiums con-
insurance companies in the country recorded a growth above the tinue to grow, increasing by 29.4% compared to the first half
second quarter of 2019 before the pandemic,it is stated that “The of 2020, from 193.9 to 250.9 billion rubles. Total payments for
annual dynamics of the Russian insurance sector in the second the first half of the year exceeded 140 billion rubles, which is
quarter of 2021 was significantly affected by the impact of the low 1.58 times more than in the same period last year.
base. The restrictions imposed by pandemic measures in April-June
2020 led to a decrease in economic activity, which led to a decrease As of June 30, 2021, the size of the regulatory reserves of life
in the volume of insurance premiums. However, the sector has risen insurers exceeded 1.4 trillion rubles, which is an increase of
above its 2019 levels with its performance in the second quarter 3.6% compared to June 30, 2020. A noticeable growth is ob-
of this year.” In the statement, it was stated that the demand for served in almost all life insurance products. The collection of
insurance with low average insurance payments against accidents investment life insurance increased by 20.9% from 83.4 to
and diseases in the number of policies issued by insurance compa- 100.9 billion rubles. Premiums collected from cumulative life
nies increased by 45.1 percent in the demand for voluntary health insurance increased by 25.1% from 54.5 to 68.1 billion rubles.
insurance and individuals' property insurance, and it was said that For credit insurance, 67% more was charged in the first half of
the growth rate of life insurance contributions in the second quarter 2021 than in the same period last year (an increase of 37.2 to
increased to 28.9 percent compared to the same period of 2020, 62.1 billion rubles). Premiums for other types of insurance also
and the contribution volume was 35.9 billion rubles. increased by 31.4% - from 15.1 to 19.8 billion rubles.

In the Central Bank report, which stated that the volume of in- The biggest share of payments fell on investment life insurance
vestment life insurance premiums increased significantly by 65.2 payments. In the first half of 2021, it amounted to 109.3 billion
percent after a long period of decline, it was emphasized that the rubles and exceeded the total fees for such insurance for the
growth in the market in the second quarter was greatly facilitated same period. In addition, the number of insured events for life
by the soft monetary policy and low interest rates on deposits. insurance increased by 45.9% (from 135.6 to 197.8 thousand
units) and by 80% for non-life insurance (from 35.1 to 63.2
The report points out that the growth in payments under insurance thousand).
contracts in the April-June period of this year accelerated by 45.2
percent compared to 2020 due to the recovery in economic activity Digital Insured Index increased
and it is reported that 199.2 billion rubles were paid to customers The All-Russian Association of Insurers (BCC) and AS&M have
by insurance companies in the second quarter, and despite the in- calculated the Index of Digitally Insured Persons for the second
crease in premiums, the companies' pre-tax profit for the first half half of 2020. Compared to the first half of 2020, the Index in-
of the year decreased by 18.6 percent to 121.3 billion rubles. creased by 1 percentage point. (from 43% to 44%.) This result
shows that there is a fairly high level of accessibility and public
The net profit of the insurance sector in Russia in the second quar- confidence in digital insurance services, as well as more poten-
ter also decreased by 18.3 percent and amounted to 99.5 billion tial for the digitalization of the industry.
rubles.