Market Trends of Russia Property & Casualty Insurance Industry
Motor Insurance had the Stagnant Performance due to Pandemic
In 2020, new car sales fell by 9.1% compared to the previous year. Despite this, due to an increase in the number of contracts, the volume of Casco (Voluntary Motor Insurance) fees increased by 3%. Restrictive measures against COVID-19 were the biggest limitation in Casco's development in 2020: In Q2 2020, new automobile sales declined by 46%, while car loans fell by 42%, compared to the same period in 2019. Similarly, CMTPL Motor insurance fees grow marginally due to an increase in the number of contracts.
Banks Represents the Largest Sales Channel for Insurance in Russia
Banks represent the largest sales channel for property and casualty insurance in Russia. Banks contributed 38% of the total volume of premiums in the Russian insurance market. In 2020, the premium received through the credit institution amounted to Rubles 34.7 billion. Similarly, direct insurance sales are the second-largest channel, followed by the agents. The restriction associated with the pandemic has provided an incentive for the development of online distribution channels. Various property and casualty insurance segments showed electronic sales' positive dynamics.
