Russia Insurance
Insurance in Russia is developed as an individual sphere of economy. Insurance in Russia is developing in a new way , it has its own capital ands policies even at the state level. Russia insurance industry is regarded as an important part of Russia's private pension and health care systems. Insurance industry development in Russia in 20th century was extremely colorful. When Soviet State was established, new economic policy was launched named NEP.Western countries take participation in the Russian insurance market in 21st century. The insurance branch development reflects the economy of Russia. First Russian insurance company was established in 1786 under the State Loan Bank is known as Insurance expedition.
In 1998, insurance industry reached its culmination point in Rouble crises which cause social and economic harm. A change in the insurance legislation took place in 2004 when new addition of law on insurance was issued and system of Russian insurance supervision is reconstructed. The function was transformed from department of insurance supervision of the ministry of finance to federal service of insurance supervision. Insurance companies in Russia include insurance firms which deals with life insurance, re-insurance, commercial and liability insurance. Near about twelve hundred insurance companies were registered in Russia as on year 2000. But now half of the insurance companies were decreased due to reinforcement of the control by insurance supervisory authority for the observance of requirements of Russian insurance legislation and due to the fierce competition between the insurers.
The total insurance premium collected by the Russian insurance companies in the year 2000 is 118 billion Rubles which represents a extreme growth or 4% of GNP. Leading life insurance companies in Russia are Yakor, stolichnoe, Uralsib, Gorodskaya, Rosno, Rosgosstrakh etc. The leading non life insurance companies in Russians are Ingossstrakh, Reso Garantiya , Soglasiye, MAKS, and Alfa etc. The share of life insurance companies in Russia is 48.5% of the total premiums. Increasing cooperation with the international financial institutes and developing mutually economics, Russia is undergoing a process of integration in World's financial market.
Russian Federation has joined with world trade organization national insurance market is developing due to Liberalization of the access to the insurance market for the foreign insurance companies.Ingosstrakh insurance companies was established as a department of foreign insurance of USSR in 1947 on the basis of relevant department of Gosstrakh. The first operation of this were marina hull , marine cargo, liability and fire insurance . According to Russian insurance law before 1994, insurance brokers should be registered in the state register of insurance brokers. They do not allow distributing services of direct foreign insurers in territory of Russia.
In the early period of Russian insurance market, thousands of financial institutions came into being, but they disappeared after short period of time. Infect, Russian insurance companies invest a big bulk of overall portfolio in the insurance sector by buying bonds and giving credits. Share of companies in the insurance portfolio is only one fifth. Overall Russian insurance market is still an emerging market including insurance business will have long structural growth.
