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THE INSURANCE MARKET. SPECIFIC CHARACTER OF ITS DEVELOPMENT IN RUSSIA
Executed by Regina Mutovkina Checked: Loukitchev P. M.
CONTENTS.....................................................................................................................................................................2 INTRODUCTION.............................................................................................................................................................2 THEORY.........................................................................................................................................................................4 THE BASIC DEFINITIONS......................................................................................................................................................4 THE KINDS OF THE INSURANCE MARKETS.................................................................................................................................5 AN ECONOMIC NATURE AND FUNCTIONS OF INSURANCE...............................................................................................................6 THE KINDS OF INSURANCE SERVICES ON AN EXAMPLE OF AN OPEN JOINT-STOCK COMPANY “ROSNO” ......................................................................................................................................................................................11 MODERN TENDENCIES ON THE INSURANCE MARKET OF RUSSIA....................................................................14 CONCLUSION..............................................................................................................................................................22 LITERATURE................................................................................................................................................................24
For today the insurance market is one of the most developing and perspective branches. Any organization can not manage without risk insurance, and it doesn’t matter what it is: a factory, shop, hotel etc. Today people insure everything: themselves, staff, equipment, deals - therefore the huge amount of organizations are connected with insurance in this or that way. A high competition among Russian companies results in improvement of the insurance services and their variety. Also we can see a coming of foreign companies on the Russian market and their quality of services is much higher than ours. Therefore the companies should compete not only on a variety of services with compatriots, but also on the quality and the level of trust - with the western insurance companies. For today the government also participates in the development of this market. Some kinds of insurance have got a compulsory character that increased the profit to the insurance companies and tax deductions in the budget. In the theoretical part of my work I will give the basic definitions of the insurance terms, I will show different kinds of the insurance markets and insurance services (on the example of Open Joint-Stock Company “Rosno”) and also an economic nature and the functions of insurance will be taken up. In the practical part the tendencies in the insurance market of Russia will be considered. I will base on the researches of the Russian Union of Insurers, the company “Romir”, magazine “Expert” and the National Agency of Financial researches.
The basic definitions The modern market economy represents a difficult organism consisting of the huge amount of various industrial, commercial, financial and information structures, cooperating on the system of rules and law of business, and united by the common concept - the market. Insurance is a system of economic relations on the protection of the property interests of physical and corporate persons in approaching of the certain events (insured accident) due to money resources (insurance funds) formed from the insurance premiums paid by them by payment of the insurance compensation. An interaction of sides interested in the signing of insurance agreements and achievement of the productivity of insurance operations takes place on the insurance market. The insurance market is the system of economic relations making a field of activity of insurers and reinsures in the given country, group of the countries and on an international scale on the rendering the appropriate insurance services to insurants. Insurants are the corporate persons and the capable physical persons who have an insurance interest and started relations with the insurer by the law or on the basis of the bilateral agreement, validated by the insurance contract. Insurers are the corporate persons of any organization form determined by Russian Federation, created for realization of the insurance activity (insurance organizations and the societies of a mutual insurance) and received the state sanction (license) to the realization of operations of insurance. A subject of a direct activity of insurers can not be industrial, trading - intermediary and bank activity. An economic essence of insurance consists in the formation by the insurer of the insurance fund due to insurance fees of the insurants, intended for the insurance payments to insurants at approaching of the insured accidents fixed in the contract.
The kinds of the insurance markets The structure of the insurance market can be characterized in the institutional and territorial aspects. In the institutional aspect it is represented by: - joint-stock insurance companies - corporate insurance companies - mutual insurance companies - state insurance companies In the territorial aspect it is possible to allocate: - local (regional) insurance market - national (internal) insurance market - international (external) insurance market The development of market relations destroys territorial barrier on the way of socioeconomic progress, intensifies integration processes, and leads to joining of the national insurance markets to international. An example of such integration is a creation of the all-European insurance market of the countries-members of EU. Depending on scales of supply and demand on the insurance services it is possible to allocate the internal, external and international insurance markets. The insurance market divides into 4 parts: - personal insurance; - property insurance; - insurance of responsibility - risk economic insurance. Each of them can be divided into the separate segments, for example, the market of insurance from accidents, the market of insurance of the domestic property and so on.
An economic nature and functions of insurance Insurance is a way of compensation for the losses of physical or corporate person, by the distribution of these losses between many persons (insurance totality). The compensation of losses is made from means of the insurance fund which is under the jurisdiction of the insurance organization (insurer). The objective need for insurance is caused by the thing that losses sometimes appear because of the destructive factors, absolutely not under control of people (natural cataclysms), and do not attract someone's civil-law responsibility. In a similar situation it happens that it is impossible to understand who is an initiator of damages, so the victim should pay for it him/herself. Beforehand created insurance fund can be a source of compensation of damages. Insurance is expedient only when the insurance events (risks) cause significant need for money. So, for example, the physical person who has this requirement, as a rule, can not cover it using his own means without serious limitation of his standard of life. The insurance relations, fixed in the written contract of insurance as the civillaw deal, are known, at least, from late Middle Ages. At that time due to the great geographical opening the horizons of sea international trade were appreciably enlarged. Businessmen needed big capitals to use new horizons of the opened opportunities. Historically appeared because of the necessity to provide compensation of losses which are not subject to put on other persons, insurance had essential changes during its long development and is extended now on many cases when losses are connected to the civil-law responsibility of their initiator. In such cases insurance serves for the victim as an additional guarantee of protection of his property interests. Further alongside with the property insurance providing the compensations, connected to loss or damage of material benefits, the personal insurance, guaranteeing payments of certain sums of money because of death, mutilation, illness, living up to the certain age of the person, appeared. As an economic category insurance represents the system of economic relations including the totality of forms and methods of formation of trust funds of
money resources and their use on compensation of damage at the various unforeseen negative phenomena (risks) and also on the help to citizens in the certain events in their lifes. Economic category of insurance is characterized with the following attributes: • presence of redistribution relations; • presence of insurance risk (and criterion of its estimation); • forming of insurance community among insurants and insurers; • combination of individual and group insurance interests; • a joint liability of all insurants for damage; • the closed allocation of damage; • redistribution of damage in space and time; • recurrence of insurance payments; • self-repayment of insurance activity. Market economy provides essential increase of a role of insurance in public reproduction, considerably expands a sphere of insurance services and development of alternatives to the state insurance. At a command-administrative system of management of a national economy, there was a dominant role of a state ownership and the weak economic responsibility of heads and labor collectives for safety so insurance could not receive an important place in economy and public relations. In market economy insurance is, on the one hand, a mean of protection of business and well-being of people, and, on the another hand, the kind of activity bringing the income. The sources of profit of the insurance organization are the incomes from an insurance activity, investments of temporary free means in objects of industrial and non-productive fields of activity, in shares of enterprises, bank deposits, securities etc. Insurance serves an important factor of stimulation of industrial activity and ensuring of a healthy way of life, creates new stimulus for growth of labor
productivity according to the personal contribution to the manufacture and maintenance of his own well-being. It is known that the essence of the finance as an economic category is connected with economic relations during creation and use of the funds of money resources. The essence of insurance is also connected to the creation and use of funds of money resources. If finances always need monetary relations and forming of funds of money resources, insurance can also be natural. A mutual insurance is a classical example of it. Besides, insurance always needs the opportunity of happening of an insurance case, i.e. the obligatory attribute is inherent in insurance – probabilistic character of relations. The use of means of the insurance fund is connected to the approach and consequences of insurance cases. There is one feature of insurance that makes it similar to credit: a recurrence of means of the insurance fund. It is credit that provides a recurrence of the received monetary loan. However, marking such recurrence of insurance payments a characteristic feature of insurance, it is necessary to understand that it refers first of all to the life insurance. The most part of payments (net - payments) comes back at approach of an insurance accident (living of insured person up to the certain time or in case of his death). This return of payments has a necessary character. But in the case of property insurance, at insurance from casualties and at many other kinds of insurance the payments of insurance compensation happens only at approaching of an insurance accident and in the sizes defined by the appropriate documents. At the payments of insurance compensation on property or others kinds of risk an address of these sums is lost. An economic substance of these payments differs from the returns of insurance payments. The functions of insurance and its substance as an economic category are connected. It is possible to allocate the following functions of an economic category of insurance: 1. Forming of the specialized insurance fund of money resources. 2. Compensation of damage and personal material security of citizens.
3. Prevention of an insurance accident and minimization of damage. The first function is a forming of the specialized insurance fund of money resources as payments for risks that the insurance companies take on their responsibility. This fund can be formed both in obligatory, and in the voluntary orders. The government, proceeding from economic and social conditions, regulates development of insurance market in the country. This function is realized in the system of the spare and reserve funds providing stability of insurance, guarantee of payments and compensations. If in commercial banks an accumulation of money of the population with the purpose, for example, of monetary savings, has only saving beginning, insurance because of this function has a saving-risk beginning. In the moral plan each participant of insurance process, for example, at life insurance, is sure in getting monetary compensation at the case of unfortunate event and at end of the validity of the contract. At the property insurance through this function not only the problem of compensation of costs of the suffered property is solved within the limits of the insurance sums and the conditions in the contract, but also the conditions for material compensation of a part or full cost of suffered property are created. Through this function the problem of investments of temporarily free means in banks and other commercial structures, investments of money resources in the real estate, purchases of securities etc is solved. With the development of the market the mechanism of use of the temporarily free means will be improved and extend in insurance. The value of the function of insurance as forming of special insurance funds will grow. The second function of insurance - compensation of damage and personal material providing of citizens. Only physical and corporate people who are the participants of forming of the insurance fund have the right on the compensation of damage in property. The order of compensation of damage is defined by the insurance companies, proceeding from the conditions of contracts of insurance, and is regulate by the government (licensing of the insurance activity). The Third function of insurance - the prevention of an insurance accident and minimization of damage - assumes a wide complex of measures, including
financing of actions on non-admission or reduction of the negative consequences of accidents, acts of nature. It also includes a legal influence on the insurant, fixed in the terms of the made contract of insurance and focused on its careful attitude to the insured property. For the realization of this function the insurer forms a special monetary fund of the preventive actions. It is in interest of the insurer to spend some money resources for the prevention of damage (for example, financing of the fire-prevention actions: purchase of fire extinguishers, special sensors of the control of the thermal radiation etc.), that will help to keep the insured property in an initial condition. The sources of forming of the fund of the preventive actions are formed by the assignments from insurance payments. Thus, acting in the monetary form, fixing these relations in the legal documents, insurance has the features, connecting it with categories "finance" and "credit" and at the same time as the economic category has only for it characteristic functions, executes the role that only it has.
THE KINDS OF INSURANCE SERVICES ON AN EXAMPLE OF AN OPEN JOINT-STOCK COMPANY “ROSNO”
OJSC “Rosno” was created in 1991 and is one of the largest Russian universal insurance companies. At the order of its clients there are more than 100 insurance products. Regional network of Rosno consists of 100 branches united at the territorial features in 10 managements and 300 agencies in all subjects of the Russian Federation. More than 15 million person and over 50 thousand enterprises and organizations have insurance policies and contracts of this company. Company Rosno is: - On 4-th place in the rating of the largest insurers of property - On 4-th place in the rating of the largest retail insurance companies - On 3-d place in the rating of the largest companies on insurance from accidents and illnesses - On 4-th place in the rating of the largest insurers of people leaving abroad - On 3-d place in the rating of the largest companies on medical insurance - On 4-th place in the rating of the largest autoinsurers of corporate people In 2007 Rosno received a rank «Insurance company of the year» in the annual competition made by a business weekly journal "Company" on the basis of the analysis of events on the various markets. Thus, all tendencies in the insurance market of Russia are reflected at the work of the company Rosno, therefore, looking at its insurance products, it is possible to say, that it concerns to the whole market. Today the company Rosno offers 9 kinds of insurance for private persons and 8 kinds for corporate clients. For private persons 1. Autoinsurance is a full package of programs of insurance protection of the automobile. There are programs MTPL insurance (in Russia – OSAGO), CASCO, complex insurance of the automobiles bought in the salon and/or on credit, a technical help and evacuation of the automobile in the case of breakage, arrival of the breakdown commissioner, insurance of passengers and driver.
2. Insurance of property: insurance of cottages, country houses and buildings on the personal garden-plots, apartments (constant, for the period of holiday, the program of insurance of loss of the property rights to the apartment, and a joint program Rosno and the governments of Moscow). 3. Medical insurance. Of course there are programs of Necessary Medical Insurance (NMI) and Voluntary Medical Insurance (VMI) and also policies for future mums and «family medicine» - offering a family doctor. 4. Insurance in tourism. There are such directions as: insurance of the citizens leaving abroad, and travelers on Russia and the CIS; insurance of medical and medical-transport costs, insurance from accident; insurance of lovers of a scuba diving and winter kinds of sports, and also an insurance of the automobile-civil liability for leaving abroad on their own automobiles. 5. Hypothec insurance: of life and ability to work of the borrower (at the situation as a result of which the borrower can not extinguish the received credit), insurance of the apartment/building that is going to be bought in the case of damage or loss, and an insurance in the case of loss of the property right to the object of the real estate. 6. Insurance from accident: insurance of all family from illnesses and accidents, and an insurance of the driver and passengers. 7. Life insurance - one of the most popular insurance services in the foreign markets, but in Russia it only develops. The company offers insurance with accumulation, for the benefit of children for forming the guaranteed savings till majority, the graduation of university or wedding, risk-life-insurance for the protection of family in the case of loss of husband or his disability, and also a pension-life-insurance which guarantees payments of the lifelong pension. 8. Insurance of the responsibility to the third parties, including full insurance of the tenant. 9. And also an insurance of animals. Voluntary insurance of animals, and insurance of the responsibility of their owners.
For corporate clients Insurance of the enterprises is one of the basic directions of work of the company Rosno. For today the company gives a wide choice of services, satisfying practically all needs of corporate clients. 1. Insurance of employees: VMI and from accidents on manufacture. 2. Insurance of transport. - Insurance of motor transport - Insurance of railway vehicles - Insurance from the civil liability of carriers - Insurance of sea and aerospace risks - Insurance of cargoes, goods and containers 3. Property insurance: from fire and other dangers, losses from break in manufacture, machinery and equipment from breakages, construction risks. 4. Insurance of the responsibility: - of the civil liability (usual enterprises and enterprises of the high danger; owner of the property right to objects of the intellectual property) - professional responsibility - for the harm because of the lacks of goods - clinical researches of medical products - hotels - civil liability - of risks of the financial organizations - liabilities on the state contract 5. Insurance of the show business: property, civil liability and financial risks. 6. Reinsurance by the international companies. Thus, on the example of Rosno it is visible, that for today in the insurance market there is a huge amount of supplies covering all spheres of human life.
MODERN TENDENCIES ON THE INSURANCE MARKET OF RUSSIA
Today insurance market quickly develops so the huge amount of famous and respected agencies and magazines are engaged in its research. The National Agency of Financial Researches (NAFR) made several researches of consumers of the insurance services in Russia. Now I will show some tendencies that we can see from the researches. The level of use of the insurance services in Russia:
In this research it was found out that in the period 2005-2007 the quantity of Russians who use one or other services of insurance increased from 37% up to 46% - it is almost each second Russian. From the point of view of geography of users of the insurance services, serious changes in comparison with the two years old situation were not observed. The greatest quantity of users of the insurance services is in the cities with a population more than 1 million and cities with the population from 100 up to 500 thousand people. The types of settlements in which a quantity of users is small are the settlements of a city type (36 %) and cities with a population less than 50 thousand people (39 %). On the basis of the revealed tendencies it is possible to make a conclusion about the perspectives of the further development of the market of insurance services due to the potential of the Russian regions.
The use of the insurance services in different types of settlements in 2007:
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
50 010 1m 0ln 50 0 th ou sa 50 nd -1 00 le th ss ou th sa an nd a 50 se th ttl ou em sa en nd to fa ci ty ty pe m ln an d vi lla ge St -P 1
M os co w
m or e
I don't use
I am not sure about the answer
A certain dynamic was observed in the structure of the kinds of insurance used by Russians. In particular, the quantity of Russians who answered that they used the services of insurance of the automobile from stealing and damage (CASCO) increased almost twice for these two years - from 3.4 % up to 6 %. The quantity of people who said that they insured their property increased from 7,8 % in 2005 up to 9 % in 2007, and also the amount of respondents who bought paid AMI grew from less than 11 % up to more than 18 %). 13 % of the respondents use two kinds of services and for about 5 % use tree or more. The use of different kinds of the insurance services in 2005 and 2007:
Kind of insurance MTPL insurance Insurance of property VMI Insurance of children Insurance from accidents AutoCasco Insurance in trips Insurance of own life Respondents, 2005,%
20,2 % 7,8 % 10,9 % 3,6 % 3,2 % 3,4 % 2,8 % 1,9 %
19,6 % 9,2 % 18,1 % 3,3 % 2,8 % 5,5 % 4,4 % 2,2 %
Insurance of the responsibility for causing damage to somebody Another I do not use any insurance services I an not sure about the answer
1,3 % 61,1 % 1,6 %
0,9 % 50,7 % 3,0 %
On the voluntary medical insurance we can see changes in the structure of consumers. If in 2005 among users of VMI there were 47 % of men and 53 % of women, in 2007 the share of men decreased to 43 %, and the share of women increased up to 57 %. The age structure of users of VMI changed in the side of reduction of insurants in the age group from 35 till 59 years: in 2007 in this age group there were 40 % of users (against approximately 50% in 2005), and the number of young users, on the contrary, increased. It means that the youth in the last years started to realize better the advantages from using the given kind of insurance, and at the same time, young people have more opportunities of purchasing the policy VMI nowadays. The structure of the owners of the policies of VMI according to age:
30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00% 18-24 years 25-34 years 35-44 years 2005 2007 45-59 years 60 and m ore 22% 16,50% 23% 19% 22,50% 21% 19% 15% 15% 27%
The portrait of the typical user of AutoCasco also changed. In 2005 the serious part of clients of the insurance companies on AutoCasco was represented by men in the age from 25 till 34 years (31 %). In 2007 among all respondents bought policies AutoCasco there are 57 % of men and 43 % of women, thus among men the big share of insurants Casco is in the age group 25-34 years (34 %), and among women - 35-34 years (29 %). As a whole, for the two years the
audience became considerably younger: the number of users in the age from 18 till 34 years increased and the clients of AutoCasco older than 35 years decreased. The structure of the owners of the policies of AutoCasco according to age:
60 and m ore 3% 11% 24% 26% 26% 24,00% 31% 24% 16% 15,00% 5,00% 10,00% 15,00% 20,00% 25,00% 30,00% 35,00% 2005 2007
In May 2007 the company “Romir” made the sociological research concerning the opinion of Russians about insurance services. Its results allow noting a number of positive tendencies in the sphere of insurance, an improvement of the attitude of the population to the insurance and a perfection of the system of researches of the insurance market. The research of “Romir” about an insurance market was made in all federal districts of Russia. 1584 people were interrogated in the age from 18 years and older. During this research sociologists found out, how many Russians use insurance services, what services are most popular among them, how they find out about existence of the insurance companies, by what criteria choose among them, and what influences on the decision making about using or not using of the insurance services. If to look at the amount of people using insurance services, opinions of two researchers differ a little: on the data of NAFR it is 52 %, and by the results of “Romir” - 61 %. Probably, it is connected with the fact that these researches were made with a difference per half-year - in December and May 2007.
The sociologists asked the respondents the following question: «What prevents you to use the services of the insurance companies more actively? » The answers were in such a way:
Uncomfortable business hours of the insurance companies Uncomfortable disposition of the offices of insurance companies I am not satisfied in the set of services Unsatisfactory level of service Lack of information about supplies Nothing prevents, we use it I don't understand how the system of insurance works In the near future I will not need it Insurance services are too expensive I don't believe in insurance 0 5 10 15 5 15 21 21 1 1 2 2 3 3 4 4 10 9 30 8
18 20 25 30 35 40
I don't use
As we can see from the given diagram, a per cent of those who does not believe in insurance is much higher among people who do not use these services (42 %). 35 % of people who use insurance services and 21 % among those who does not use complain on the expensive services of the insurance companies. For 21 % of non-users one of the main reasons of absence of interest to services of the insurance companies is that they think in the nearest future they will not need it. 15% of users badly understand how the system of insurance works and 8 % of citizens do not use insurance services exactly because of it. Almost equal quantity of users and non-users (9 % and 10 %) speak about a lack of the information about services and supplies. Nevertheless, almost third (30 %) interrogated users do not complain on anything and actively use the services of insurance companies.
As a whole the results of this research showed an injustice of opinion of some experts about a scornful or really negative attitude of Russians to insurance, it is also not necessary to speak about «a zero insurance culture» or «a financial illiteracy». It is just because Russians don’t have enough experience of working with the insurance companies and using of insurance products. Before western people started to use insurance actively it was need to pass corresponding laws and achieve a high level of incomes of citizens. Five years ago an average salary in our country was less than 100 dollars, and 80 % of the population had incomes less than 4000 rubles per one month on each member of family, so they were really poor. Today average wages in the country are about 500 dollars. And about 50% of Russians have incomes more than 8000 rubles per month on the person (300 dollars) and they are not considered poor any more. And only at that time people can start thinking insurance – when they have enough money for it. The key factor for people to look at insurance is a level of their income, as, in general, at many other products too. Even if in the most general case to break consumers in 2 groups, for example, with the income on 1 person in family of 300500 dollars, and with the income 600-1000 and to look how the level of insurance activity will differ on the different directions we will see amazing results. When a person comes from one group to another we can see a serious change in his interest to insurance: if he becomes richer he will use insurance services but if he becomes poorer – he stop using. The task of the insurer is to understand for what group its product is accessible, then to reveal, what needs it has, and then to operate looking at the scheme of classical marketing. Of course a lot of things will depend on the insurance companies, how they work for increasing of understanding and clearness of the market, for attraction and training of the consumers. They should explain the their group of consumers what an insurance product is, that the benefit of it is not only instant, but even does not concern to the products with average time horizon. For understanding of the advantages of an insurance product many years should pass - sometimes 10-15 years and more. People will understand all benefits of insurance only when a lot of
them will try it. Their friend will like it and tell about it to them. Then these people will tell another people about advantages and so on. It is not necessary to try the service yourself - it just several big groups of people should try – and after that all the other people will do the same. Insurance is not a simple product, not an object of an impulsive purchase; the consumer should become competent and understand what conditions he buys. All this things mean the serious requirements of quality of work of insurers on the promotion of the services. Today we can say that only autoinsurance is a really successful sphere, and for example, on the insurance of the real estate there are no such efforts for promotion so the results are not satisfactory: only 1% of the real estate is insured. Insurers will be able to raise an amount of insured things only when they will be fair with consumers and will understand them and to offer them really those insurance products in which they require and with the fair price. Nowadays we cam see an arrival of the foreign insurance companies in Russia and they have several advantages. They exist tens or sometimes hundreds years, their reserves are really huge, reliable and don’t depend on the fluctuations of a political climate in Russia. These are factors on which people pay a lot of attention and the Russian companies because of an absence of some of these factors are not so popular and people don’t trust them so strongly. On the 15 of February 2008 there was the VIII-th congress of the Russian Union of Insurers. The results of work were discussed and an analysis of the development of the insurance market of Russia was made.
The main parameters of the insurance market of Russia in billions rub: Parameters Insurance earnings Rate of growth, % 2007 763,6 25,1%
2006 610 25.8%
2005 491 4%
Insurance payments Rate of growth, % The amount of the insurance companies in the state register
473,8 34.2% 857 (on 1.01.2008)
353 28.9% 918
274 27.9% 1075
Insurance earnings increased for 2 years on 270 billion rubles, and insurance payments – on 200 billion rubles. It speaks about the increased trust of the consumers because they can see that the companies redeem their obligations on payments. A reduction of number of the insurance companies is caused by several factors: for 2 years there were several big fusions in the market, both among the small companies, and among large ones (for example, Rosno and Medexpress); the unreliable companies in connection with the competition had to leave from the insurance market. Thus, the basic parameters show the positive tendencies. Magazine “Expert” also made its own researches. In one of its articles there was a comparison of the Russian and British insurance markets. The conclusions made by magazine, show, how our insurance behinds from European, even including all positive tendencies. It was said that in Russia it is possible to insure for and from everything: on the case of time disability, hospitalization, operation, full disability, death, and also on the case of the diagnosis of critical disease. But if to look at this question with all validity it is necessary to notice that, for example, on the case of disability in Russia there are no programs similar to British. If to reject state obligatory social and medical insurance, giving minimal compensation payments in the case of disability, there will be rather limited choice of voluntary variants: in most cases medical insurance will refund expenses on medical treatment and recovery of the lost health; insurance from accidents and illnesses that usually provides single payment on the fact of disability (depending on the degree of the received traumas) or the diagnosis of critical disease (that is determined in the contract of insurance). In the minimal variant Russian insurers protection using long-term life insurance assumes liberation from the further payments in the case of an establishment to the insurant of non-working group of
physical inability. Rather seldom there are programs that allow providing payments as the rent on the case of constant invalidity. However, it is possible to hope, that we will soon become nearer to Europe. Insurance company “Standardreserve” confirmed, that it develops offers for the long-term insurance of the work capacity, and another organization – Rosno – prepares to offer its clients the program of insurance of work capacity with the long term fixed payments (till the day of stopping the physical inability diagnosis).
On the market of insurance services of Russia we can see the positive tendencies for many parameters. In the period of 2005-2007 the amount of users of insurance services increased on 10% and started to make 46.3%. If to look on the geographical division it is possible to notice that at present most of all people who have
insurance policies live in cities with 1 million citizens and also from 100 up to 500 thousand citizens. In villages there are on 6 % more insured people than in Moscow and Saint-Petersburg and it speaks about the distribution of trust and popularity of insurance out of big cities. The amount of users of VMI grew for 2 years on 10%, and a reduction of clients in the age of 45-59 years was accompanied by increasing of young buyers of insurance services (18-24 years). It means that young people began to think more seriously about insurance. One of the most popular kinds of insurance for today is a various insurance of automobiles. Among buyers of CASCO the share of young people (18-34 years) considerably increased. First of all it speaks about the growth of well-being of citizens. Looking at those who are not clients of the insurance companies the biggest part consists of people who do not trust in insurance or consider that in the near future it will not be required to them. It means that any essential negative moments of insurance in the eyes of consumers do not exist. The Data of the Russian Union of Insurers also show that the amount of insurance payments grew on 270 billion rubles that speaks about an increasing of trust to the insurance companies from the population though it is impossible to forget that some kinds of insurance are simply made obligatory for all nowadays. Thus, on the Russian market the growth of trust of the population, increasing of insurance payments and the shift aside younger clients is observed. But at the same time, the analysis of magazine “Expert” shows that the Russian companies are still far from the western competitors looking at the quality though in this area some improvement is observed.
1. Абрамов В.Ю. Страхование: теория и практика. М, 2007 2. Сахирова Н.П. Страхование. М, 2007. 3. www.insur-info.ru
4. www.rosno.ru 5. www.insurance.ru 6. www.expert.ru