S &P: For the Russian insurers there come hard timesthe Russian market of insurance still is in a stage of formation and in 2009 - 2010ãã. Will test unprecedented pressure in connection with probable recession of the Russian economy. About it it is told in the published report of international rating agency Standard and Poor`s.
In the Russian Federation a considerable quantity of the insurance organisations (as of September, 30th 2008ã operates. More than 800), however degree of concentration of the market is high enough. On a share of 10 largest insurance companies it is necessary more than 60 % of an insurance premium - gross. Other part of the market fragmentirovana also is characterised by a great number small, not enough the capitalised companies occupying very small share of the market.
At the same time now profitability of sector, factors of costs, capitalisation indicators decrease, and growth of insurance premiums is slowed down, credit analyst S &P Victor Nikolsky has noted. Constant pressure upon insurance sector will render the general poor quality of insurance investment portfolios (including bank deposits and corporate bonds), thus sharp reduction of liquidity and deterioration of indicators of quality of actives in the Russian bank sector will aggravate only a problem, believes S &P.
To a lesser degree crisis will mention the largest and most developed companies: the management of the largest companies realises possible problems and is ready to their decision. Besides, the large companies possess well developed procedures risk - management.
“ despite it, crisis will have some positive consequences for sector, - V.Nikolsky has underlined. - It will be left by insufficiently qualified and capitalised insurers, and there are companies with higher level of a transparency and quality of services. The companies will expand distribution channels. Operational expenditure will be optimised, the problem of a staff deficit existing earlier in sector becomes less sharp “.
Crisis, undoubtedly, will lead to change of all Russian branch of insurance which should prove the stability in present hard times.