Russia Is the Largest Non-Life Market in CEE and Former USSR
According to the 2007 financial totals, Russia has the largest non-life insurance market in Central and Eastern Europe (CEE) and the former USSR. The list of the ten largest markets within the region also includes Turkey, Poland, the Czech Republic, Ukraine, Greece, Romania, Hungary, Slovenia, and Kazakhstan, according to the analytical report "TOP-Insurer. Insurance Markets and Insurance Groups in CEE and Former USSR" published by Russian Polis Information Group in September.
In 2007 Russia, Ukraine, and Turkey each increased their gross written premiums by approximately 20%. Poland showed a slightly smaller premium growth, while in Romania this figure was almost two times higher.
Despite the fact that average premium growth within the region was 17.4%, some mature markets stagnated. For example, the non-life market rose by less than 10% in the Czech Republic, Greece, and Hungary.
"Russia, Turkey, Poland, and Romania were the main engines of premium growth (in absolute value) within the region. These four countries accounted for 75% of the aggregate premium gain, with Russia representing 50% and other three states 25%. Not surprisingly, the most undeveloped markets, such as Georgia, Azerbaijan, Albania, and Uzbekistan, posted the most rapid increase in written premiums," notes Russian Polis Information Group in its survey.
A high penetration of non-life services was demonstrated not only in relatively developed economies (Slovenia, Croatia, Cyprus, and the Czech Republic) but also in some countries with a low GDP (Ukraine, Bulgaria, Kosovo, and Montenegro). According to Russian Polis Information Group, the Russian non-life market is still not free from pseudo-operations (most of all in the financial risks segment) meaning that the real penetration level is somewhat lower. Although Russia, Turkey, Kazakhstan, and Romania posted a very rapid increase in non-life premiums, the highest penetration rates remain with Cyprus, the Central European countries, and the Baltic States.
