COMPREHENSIVE INSURANCE

• Insurance (Russian market)

Chronicle

2023: Growth in sales of casco policies by 21.4% to 270.6 billion rubles

Sales of casco policies in Russia in 2023 reached 270.6 billion rubles, which is 21.4% more than a year earlier. At the same time, the number of such policies issued by individuals increased even more over the year - by a third. This is evidenced by the data of the Bank of Russia, published in April 2024.

As the regulator notes, the demand for casco insurance increased significantly in 2023, which is associated with an increase in sales of new cars (they are often sold on credit, for which a casco policy is required) and the expansion of car loans, as well as an increase in the value of this type of insurance for motorists.

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In addition, there were more (in percentage terms) insured used cars - due to an increase in the value of cars for owners against the background of a limited supply, as well as an increase in the price of cars and an increase in the cost of their restoration repairs. The popularity of low-cost auto insurance programs with a limited set of risks and contracts with franchises in this segment has grown. This is evidenced by a decrease in the average insurance premium in 2023 by 17.4% on an annualized basis, to 30.4 thousand rubles.

The Central Bank notes that as a result of increased demand for auto insurance insurance, the penetration rate of this type of insurance has increased. At the end of 2023, every sixth car owner whose liability was insured under OSAGO, the car was also insured under Casco. A year earlier, the ratio of a voluntary policy to a mandatory one was 1:8. The volume of auto insurance payments in 2023 increased by 6.5% due to an increase in the cost of repairs amid an increase in the price of auto parts and an increase in the amount of payments due to the spread of franchises, for which the insured independently pays small losses.^[1]

2022: 7.6% increase in insurer fees to RUB 222.8 billion

Fees of Russian insurers on Casco in 2022 amounted to 222.8 billion rubles, which is 7.6% more than a year earlier. The Central Bank of the Russian Federation cited such data in its "Review of Key Indicators of Insurers," which was published in mid-March 2023.

According to the regulator, the growth of the market was facilitated by the expansion of the client base at the expense of both retail and corporate clients. At the same time, the increase in the number of concluded contracts occurred, despite the decline in sales of new cars.

Casco fees in Russia in 2022 increased by 7.6%

Such dynamics was associated with an increase in sales of inexpensive mini-casco programs (risks under such programs are limited, and most often you can apply for payment or repair only if the driver is not the culprit of an accident). Car owners began to fear a lack of insurance compensation for OSAGO in the face of rising prices for spare parts. Their desire to protect themselves from such risks contributed to an increase in demand for truncated auto insurance programs, the study said.

According to the estimates of the Central Bank, the average premium on insurance of land transport facilities on Casco in 2022 decreased by 3.5% to 36.8 thousand rubles in 2022, despite the increase in the cost of cars and spare parts. The volume of payments on auto insurance in 2022 increased by 11.2% year-on-year. This was largely facilitated by the increase in prices of auto parts amid their shortage, which had an impact on the growth of the average insurance payment. The number of insured events has practically not changed, the regulator added.

According to estimates, on Rosstat average, the cost of casco policies at the end of 2022 increased by almost a quarter. For individual car brands, insurance has risen in price by one and a half to two times - this was RBC reported by market participants. This trend is also due to the increased cost of spare parts.

Review of key performance indicators of insurers