But Lloyd's report also points to "significant challenges"
The value of the Russian insurance market could double to US $41 billion by 2010, according to a Lloyd’s report published today.
A 16% per annum growth rate was attributed to consolidation, an improved regulatory regime and the introduction of compulsory business classes, among other things.
Around $100 million of Russian reinsurance business is currently written annually at Lloyd's and the report is said to be part of its programme to monitor progress and take advantage of business opportunities arising from the continuing expansion of the Russian economy.
But the report also pointed to “significant challenges” that must be overcome if the market is to achieve its medium-term potential.
These challenges included a residual public distrust of financial services, inadequate capitalisation, low levels of reporting transparency and a lack of qualified insurance professionals.
Commenting on the report's publication, co-author Olga Rakhmanina of Oslo Marine Group said: “In common with other sectors, the Russian insurance industry has undergone massive change since 1991. We believe if the market is to continue to develop responsibly to meet risk mitigation demands thrown up by the economy's unrelenting growth, it's important for us to establish a bridge between the Russian insurance community and the strategically important London market.”
“We've been delighted to play our part in the production of this Lloyd's report which we believe can be instrumental in helping UK-based insurers and brokers gain a clearer understanding of the dynamics of Russian insurance.”
