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Gross insurance premiums in Russia (in millions of USD)

29.772 26.658
21.485 23.718
17.582 17.298 18.218

2007 2008 2009 2011 2014 2015 2016
Source: OECD
Source: C.I.A.
market standards. Premiums amount to 1.4 percent of GDP, channels in order to expand its insurance market throughout
whilst the average for emerging markets is nearly double that at 2016. Biggest growth of 2016 was reported in life insurance
2.7 percent of GDP. In 2014, Russians spent about 200 USD with a rate of 66 percent.
per person on insurance premiums, this was half the amount
spent per head in Brazil for instance and well below the amount Significant growth in life insurance
in more developed Western economies.
As to the share of distribution channels in life insurance pre-
19.2 percent of premium production is produced in CMTPL line miums, banks dominate the market with a share of 84 percent,
As to the premiums produced in 2017 in Russia, CMTPL premi- agents have a minimal share of 7 percent, insurance organiza-
ums account for 19.2 percent of overall premium volume, Casco tions and others follow with 6 percent, and direct sales channels
account for 14 percent, life insurance for 21.8 percent, VMI have a share of 3 percent. Five years ago, share of banks stood
for 11.6 percent, property insurance for 16.9 percent, and other at 56 percent, while agents had a share of 18 percent, insurance
insurance lines for 16.5 percent. According to KPMG’s Russian agents and others had a share of 11 percent, and direct sales had
Insurance Market Survey 2017, Russia increased its customer 15 percent.
retention levels, developed new products and created new sales

Gross written premiums for life insurance per sales channels

84%
78%
73%
69%
56%

18% 15%
11% 13% 9% 9% 11% 9% 6% 9% 9% 4% 7% 6% 3%

2012 2013 2014 2015 2016

Banks Agents Insurance organisations and others Direct sales

Source: KPMG
Zeynep Tütüncü / zeynept@bestyayincilik.com