Belarusian insurance market

Page 1

Страховой рынок Республики Беларусь

The Insurance market of the Republic of Belarus

March 2014


25 insurance companies State controlled 100%

1. Belgosstrakh, 2. Beleximgarant, 3. Stravita 4. Belarussian national reinsurance company (BNRC) 1. TASK, 2. Promtransinvest, 3. Belneftestrah, 4.Belkoopstrakh

State controlled 50% и >

1. PPF Insurance и 2. Zepter Insurance

100 % foreign ownership

LIFE

NONLIFE

Reinsurance

TOTAL

State controlled

1

6

1

8

Local capital

3

3

0

6

Foreign capital

0

11

0

11


The role of the insurance sector in the economy 1,07%

Доля страхового сектора в ВВП Market share in GDP in USD millions 2009

Premiums GDP

2010

2011

2012

9 мес. 2013

415

481

501

556

610

49 231

55 203

59 413

63 614

51 697


Premiums per head, in USD 42,05

2009

Premiums per head, USD

49,97

47,51

2010

2011

58,40

54,97

2012

9 мес. 2013

2009

2010

2011

2012

9 mo. 2013

42

47

49

54

58


The dynamics of insurance premiums, in USD millions 700 556

600

501

481

500 415 400

610 537

503

458 436

378 300 200 100

22

26

22

25

2011

2012

28

0

2009 NON LIFE

2010 LIFE

9 мес. 2013

Gross premiums Всего, премии-брутто


Investments of the insurance sector of the Republic of Belarus 10%

11%

Государственные ценные бумаги Ценные бумаг юридических лиц, в том числе банков

78%

Недвижимое имущество Счета Bankбанков balances

in USD millions

INVESTMENTS

2009

2010

2011

2012

9 mo. 2013

306

344

345

320

400

250

256

219

312

Government securities Corporate securities Real estate

Bank balances

194


Authorized capital

Equity capital * in USD millions

2009

593 204,7

669 848,8

2010

571 597,8

664 238,1

2011

357 933,4

540 142,1

2012

1 126 133,1

1 302 158,7

9 mo.2013

1 098 122,3

1 293 822,6

The structure of the equity capital 15,13% The share of УСТАВНЫЙ КАПИТАЛ в Authorized capital in Собственном капитале Equity capital

84,87%

Прочие компоненты The other components of Собственного капитала the Equity capital

* Equity capital = Authorized capital Additional capital Reserve capital Net profit (loss) of the reporting period Retained earnings


Market share of TOP 10 NON LIFE insurers Market share in percentage of the state controlled insurers

40%

60%

Insurance company

1 2 3 4 5 6 7 8 9 10

Belgosstrakh TASK Beleximgarant Promtransinvest Belneftestrakh B&B Insurance Company Belrosstrakh Belkoopstarkh Kupala Belingosstrakh

Государственные страховые компании Негосударственные страховые компании

Market share in percentage of the whole insurance sector in terms of premium 47,09 7,94 7,12 6,67 5,66 4,46 3,45 2,99 1,95 1,70

Market share in percentage of the nonlife insurance sector in terms of premium 49,97 8,42 7,56 7,08 6,01 4,73 3,66 3,17 2,07 1,80


Market share of top ten NONLIFE insurers

7,13 8,24

81,56%

7,18

Stravita (state controlled) РДУСП «Стравита»

Mega Police ОАСО «МЕГА ПОЛИС" Pensionnyie Garantii ОАСО «Пенсионные гарантии» Sedmaya Liniya УСП «Седьмая линия»

Life Insurer

Market share in percentage of the whole insurance sector in terms of assets

Market share in percentage of the life insurance sector in terms of assets

1

Stravita (state controlled)

5,86

81,56

2

Pensionnyie Garantii

0,59

8,24

3

Sedmaya Liniya

0,51

7,13

4

Mega Police

0,22

3,07


Voluntary and Compulsory insurance 54%

50%

52%

51%

46%

50%

48%

49%

2009

2010

2011

Voluntary types of insurance Добровольные виды

43% 57% 9 мес. 2013

2012

Compulsory types ofвиды insurance Обязательные

2 060

2 214

Compulsory types Обязательные of insurance виды

1 223 597

673

518 2009

669

2010

2 124

1 143 2011

2012

2009

2010

Voluntary types of insurance

518

Compulsory types of insurance

597

2 775

Voluntary types Добровольные of insurance виды

9 мес. 2013

2011

2012

9 mo.2013

669

1 143

2 124

2 775

673

1 223

2 214

2 060

Premiums


Compulsory types of insurance There are 9 classes of mandatory insurance in the Republic of Belarus: 1. Property insurance Belgosstrakh);

for

privately

owned

buildings

(monopoly

by

2. Agricultural insurance for crops, livestock and poultry (monopoly by Belgosstrakh). 3. Work injury and occupational diseases insurance (effectively a state scheme administered by Belgosstrakh)

4. Life, health and personal accident for certain state employees (government funded state scheme) 5. Professional indemnity for real estate agents (monopoly by Belgosstrakh) 6. Medical expenses insurance for foreign citizens (monopoly by majority state-owned insurers) (monopoly by Belgosstrakh and Beleximgarant) 7. Liability cover for passengers in buses, airplanes, trains and river craft (monopoly by Belgosstrakh and Beleximgarant); 8. Motor third party liability (monopoly by majority state-owned insurers – Belgosstrakh, Beleximgarant, TASK, Promtrasinvest, Belneftestrakh, Belkoopstrakh) 9. Professional indemnity for company liquidators.


The composition of compulsory types of insurance premiums (1 October 2013) Обязательное Compulsory страхование гражданской ответственнотси Motor Third Party Liability владельцев транспортных средств

3%

4%

4%

39%

50%

Обязательное страхование от Work injury and несчастных случаев на insurance occupational diseases производстве и профессиональных заболеваний

Agricultural insurance Обязательное страхование с государственной поддержкой урожая for crops, livestock and poultry сельскохозяйственных культур, скота и птицы

Property insurance for privately Обязательное страхование строений, owned buildings принадлежащих гражданам

Other types of compulsory insurance Прочие виды обязательного страхования


The composition of voluntary types of insurance premiums (1 October 2013) 6%

Имущественное Property insurance страхование

24%

70%

Personal insurance

Личное страхование

Liability insurance Страхование ответственности 2009

2010

2011

Property insurance

362

456

773

1452

1929

Personal insurance

122

169

274

534

668

34

45

96

139

178

Liability insurance

2012

9 mo. 2013


The composition of insurance premiums Personal Insurance

Property Insurance 2%

37%

12%

13%

31%

38%

25% 18%

15%

37%

страхование жизни

страхование имущества предприятий Property insurance for enterprises

страхование дополнительной пенсии Insurance of additional pension

страхование имущества граждан Property insurance for citizens

страхование от несчастных Accident insurance for случаев going abroad выезжающих за рубеж Medical expenses insurance страхование медицинских расходов

страхование предпринимательского риска Insurance business risk

Life insurance

Accident insurance

страхование от несчастных случаев и др.

страхование грузов Cargo insurance прочие Other(страхование строительно-монтажных рисков и др.)


Particularities of Belarusian insurance legislation 1. The minimum authorized capital is set at an amount equivalent to : 1 million euros - for insurer providing nonlife insurance; 2 million euros - for the insurer providing life insurance; 5 million euros - for the insurer providing only reinsurance 2. The amount of the contribution of each founder may not exceed 35 percent of the amount of the statutory fund, except for contribution (stake) of the Republic of Belarus and/or its administrative and territorial units into the statutory fund of the insurer

3. The mandatory insurance is only placed with state controlled insurers or the share of the government 50% and more 4. State enterprises or entities with the 50% and more share of the government are not allowed to carry insurance in private insurance companies 5. Any risk transfer must be coordinated with BNRC 6. There is a mandatory reinsurance cession of ninety percent of the risks that are above the limit of retention. Reinsurance is carried out by BNRC that provides reinsurance as the only local reinsurer 7. Allocation of assets backing up the reserves in bank accounts Размещение страховых резервов на специальных счетах; 8. The requirement of the level of expenses { 12% - for LIFE ; 35 % and 25 % - for NON LIFE business voluntary and compulsory accordingly }.


Main development priorities - Implementation of electronic policy - Development of a system of pre-arbitration procedure of disputes - Development of Actuaries' Institute - Improving financial literacy among the population and confidence to insurers - Creation of equal conditions for doing business in the insurance market


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