OREANDA-NEWS. May 30, 2011. Following the results of activities in 2010, the aggregate amount of premiums under the property insurance and liability insurance of legal entities, collected by Ingosstrakh OJSIC, amounted about 6.347 billion rubles. Despite a slow economic recovery after financial crisis, the company managed to achieve growth of premium charges on such key lines as liability insurance for legal entities and insurance of financial institutions.

Thus, the growth of premium charges in liability insurance made 5 percents while market growth made 1 percent. With the amount of premium totaling 935 million rubles this line makes about 15 percents of property and liability insurance portfolio. The largest increase of charges totaling 45 million rubles (9 percents) fell within insurance of various kinds of professional liability. Liability insurance within the limits of self-regulated builders became the driving force for development in this segment, which volumes have increased by 50 million rubles.

Premium volumes of financial institutions insurance have increased by 33 percent. The highest premium growth was observed in ATMs insurance. This was due to the revision of tariff policy because of significant losses increase, which, in turn, was associated with poor security equipment of ATM networks, as well as with the sharp rise in crime since 2009. Furthermore, in distinction from 2009, last year liability insurance of directors developed dynamically both due to many small and large projects, primarily, due to the win of Ingosstrakh OJSIC in Sberbank tender.

Last year, more than 54 thousand contracts of property and liability insurance have been concluded, that is 6 thousand more than in 2009. Among the largest clients, it should be mentioned the resumption of long-term cooperation with Irkutskenergo OJSC, GAZ Group, United Company RUSAL, brewing company Baltika and others. For the sixth time Ingosstrakh OJSIC has won the contest of liability insurance of the System Operator of the Unified Energy System (UES SO).

In 2010, Ingosstrakh OJSIC paid its clients 1.7 billion rubles under the property and liability insurance. In total, within accounting period, 1 636 damages have been settled. Among the paid severe losses, it should be noted the payment of 195 million rubles to Transstroy Engineering Corporation CJSC for the damage of building structures of Sochi harbor in a result of the storm on the Black Sea. About 115 million rubles have been paid to the Sady Pridonya Company in connection with the loss of harvest during the drought, 106 million rubles the company compensated to the brewing company because of the failure of gas turbine plant, 95 million – in connection with fire outbreak of autotransformer at Chagino substation.

It should be noted that, unlike the retail business, so-called delayed effect is typical for market segment of property and liability insurance of legal entities. Drop of its volumes is occurring gradually and for a quite long period of time, as well as its recovery. In particular, this trend is typical for property insurance of legal entities against fire, where, according to experts, the drop rates have been slowed. Nevertheless, the negative trend continued in 2010, due to the prolonged period of capital assets establishment, which is the subject of insurance for this line.

According to mentioned by Nikolai Galushin, the deputy director general of corporate business of Ingosstrakh OJSIC, in 2010 the strengthening of competition continued, especially in the segment of large corporate clients, which level of insurance penetration was quite high. Along with the industry lobbying, this has lead to market redistribution and concentration of large risks in captive insurance companies. Most of all, this trend is typical for oil and gas industries, petrochemicals and electricity.

Among the other trends of insurance market, the growing dictate of mediators should be noted, both insurance and non insurance; when insurers in the pursuit of increased insurance portfolio agree to meet any requirements concerning the size of commission for attracting clients.

According to Nikolai Galushin, quite limited budget capacities of many companies do not allow them to purchase a full insurance coverage. Saving money on insurance, companies are looking for an insurer with the lowest cost services; acquire coverage at partial insurance costs. Insurance companies, in turn, seeking to meet customer costs requirements and increase insurance portfolio, continue the policy of interest rates reducing. Insurers’ desire to increase insurance premiums by all means along with a simultaneous decline in underwriting and risk assessment will inevitably lead to losses growth, increased costs of case conduction, and in general to decrease of operations efficiency. First of all, is concerns property insurance, construction and erection risks and agriculture objects insurance, Nikolai Galushin noted.

Concerning the high level of system insurance, Nikolai Galushin marked, that insurance of agricultural risks, liability, construction and erection risks, legal entities' property insurance against fire remain the most „system”.