The growth of the insurance market is temporarily accelerated in the first quarter of
The rate of growth of insurance premiums reached a maximum value over the past five quarters, 12.6 percent. The increase in premiums occurred in all key segments of the market, their total volume for the first quarter amounted to 426,3 billion. However, the dynamics of the insurance market up to 2020 will depend on the extent of economic recovery and the revival of business activity on the background of lifting the restrictive measures to combat coronavirus infection, noted in “Overview of key performance indicators of insurers”.
The total volume of insurance payments increased by 14.6%, to 159,5 billion, and is associated with substantial increase in payments under previously concluded mid-term investment insurance contracts of life, term of validity expired.
The return on equity of the insurance market continued in the first quarter at a high level (33.2 percent). The insurers profit before tax increased by 19.2% to 71.6 billion rubles. This in particular contributed to the temporary regulatory relief to the Bank of Russia, introduced because of the pandemic coronavirus infection, which allowed us to capture the value of securities as of March 1, 2020.
Dynamics of insurance premiums in General follows the dynamics of GDP, as it depends on the state of sectors of the economy, activity and real incomes. Therefore, the slowdown in economic activity will have a negative impact on the insurance market in 2020.
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