Insurance business of every other company is unprofitable - Expert RA

According to forecasts, Expert RA, the volume of the Russian insurance market will be reduced by the end of the year, even if there is no second wave of the crisis. Expert RA has made two projections of the Russian insurance market in 2009: 1. The second wave of the crisis will not: the market volume in 2009 will be 526.8 billion rubles, the growth rate of -5.1% (-2% in the second half of 2009). 2. The second wave of the crisis is: the market volume in 2009 will be 499.5 billion rubles, the growth rate of -10.0% (-12% in the second half of 2009). According to the study, "Russian insurance market in the first half of 2009:" systemic crisis ", conducted by the Expert RA, the insurance business of every other insurance company is unprofitable. If the data for the first half of 2008, meaning a combined loss ratio greater than one hundred percent level in less than a third of Russian insurance companies, in the first half of 2009 the value of this index approached 50% of the UK. At the same time one in ten of the insurance company a combined loss ratio exceeded 120%. The average value of the combined loss ratio of Russian insurers was close to one hundred percent level: 99,6% in the first half of 2009. According to forecasts, "Expert RA", meaning a combined loss ratio in 2009 is even more to grow and will reach 105%. The main reasons for the growth loss: a continuation of policy of dumping, the largest insurance event occurred in 2009, and the devaluation of the ruble. Until the end of the year we should expect the bankruptcy of at least 30 Russian insurers. As noted by Alex Janin, Head of the ratings of insurance companies, "Expert RA" within the Russian insurance qualitative change is more important and more dangerous than quantitative: global financial crisis has led to aggravation of the internal market problems, the premises were laid in a period of rapid growth. At any time, these problems may be "detonated." The crisis can be expressed in the appearance of the insurance market of financial pyramid schemes - dumping of companies offering paid by the insurance premium collected from new customers. imminent departure of these companies from the market lead to a crisis of confidence in insurance companies, to further decrease the demand for voluntary insurance, the growth of insurance fraud. borderline state.