Delhi, India (PressExposure) August 19, 2008 -- According to a new research report on the Russian insurance industry by RNCOS, âRussian Insurance Industry Forecast to 2010â, after witnessing significant falls, the value of non-life insurance market in Russia is expected to grow at an impressive CAGR of 16% during 2008-2011 on the back of rising income level and increasing demand for motor insurance in the country.
The report finds that improving living standard in the country has pushed up the growth in the Russian insurance market, which is mainly driven by the non-life sector, especially motor insurance market. Cars and other upper class vehicles are afforded by those people who have high disposable income and above average living standard. As the per head disposable income in Russia surged at a CAGR of nearly 29.5% during 2002-2007, it is translating into high growth for the motor insurance market.
Further, out of the motor insurance, motor hull (or motor own damage) insurance will become the most popular in coming years because new credit opportunities have expanded the market significantly, says the report. It is now mandatory to take motor hull insurance when buying a car on credit. Despite these measures, the non-life insurance sector is underdeveloped, with only 10% cars covered under hull insurance. However, the motor hull insurance will grow at a rapid pace in the country as the sales of passenger cars are estimated to surge at a CAGR of more than 18% during 2008-2010.
âRussian Insurance Industry Forecast to 2010â is a comprehensive study of the re-emerging Russian insurance industry to analyze its growth in coming years. It also includes thorough study of various insurance products like property, aviation, motor hull and construction risk insurance to understand the future prospects of the overall industry. The research highlights the industry dynamics to analyze the opportunities, challenges and key growth factors.
The report further provides forecast on per head disposable income, number of insurance companies, GDP per head, and life and non-life insurance premium. The forecast will help the client to work out the business strategy for the Russian insurance market.
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