Less Than 300 Insurers May Be Left in Russia in a Year, – NRA

By the end of 2016 in the Russian insurance market may be left less than 300 insurers due to the processes of consolidation and regulatory actions, said the Head of NRA's Insurance Sector Analysis Tatyana Nikitina on Thursday at a press conference.

'At the end of 2016 there may remain less than 300 insurers,' said Nikitina, adding that there are about 340 players in the insurance market at the moment.

'Leavings will be made mainly on the basis of the Central Bank's decisions... Leavings of small players – due to failure to meet the requirements to assets, all in different ways, but mainly to assets and financial stability... And some consolidation will be among the largest... At the moment MSK joins VTB. In Rosgosstrakh – LLC and OJSC units are also uniting,' said Nikitina to RIA Novosti in the lobby of the press conference.

Head of the Department also added that from the market may withdraw certain insurance companies that are engaged in mandatory health insurance (MHI). 'In the second reading it was decided to double the authorized capital of insurers for MHI. Those who get this extra money will stay, whereas those who do not will go away, particularly small regional companies,' she said.

However, according to Nikitina, the main leaving wave of insurers from the market have already subsided. 'Leavings will continue further, but at a slower pace,' she concluded.

Prime (private newsfeed), 24/12/2015