LONDON–(BUSINESS WIRE) – The COVID-19 pandemic in 2020 and the sharp decline in global oil prices led to lower non-life premium income for many Russian insurers. However, according to a new AM Best report, life insurance premiums increased in the first nine months of 2020, as policyholders responded to the country’s low interest rate environment and regulatory actions taken to improve customer confidence.
In New Best market segment report, “COVID-19 and the Russian insurance market: negative implications for premium growth, but opportunities for innovation”, AM Best notes that while COVID-19 presented challenges for Russian insurers, it also highlighted the increasingly important role innovation and digitalization in the market. Before the pandemic, insurers were already investing in the development of platforms or applications, allowing online sales and other remote services. However, while the sudden need to work remotely took some of these insurers by surprise as they were still launching their digital platforms, others with more advanced IT solutions continued to sell their policies online without major interruptions and even greater use of this channel.
AM Best also believes that the change in customer behavior and expectations after the pandemic is likely to lead some Russian insurers to revise their business models in terms of their suitability for online services, not only in distribution, but also with regard to subscription and handling of claims. This is likely to have positive long-term implications for the development of the industry.
To access a free copy of this special report, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=306199.
A video discussion of this report with Valeria Ermakova and AM Best Associate financial analyst Todor Kitin is available in English at http://www.ambest.com/v.asp?v=ambrussianreport_english221 or in Russian in http://www.ambest.com/v.asp?v=ambrussianreport_russian221.
AM Best is a global credit rating agency, news publisher and data analysis provider specializing in the insurance industry. Headquartered in the United States, the company operates in more than 100 countries, with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.
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