OREANDA-NEWS. September 16, 2011. Ingosstrakh Insurance Company acted as a partner of the Insurance against construction risks panel discussion, which was organized by the Expert RA rating agency. The panel discussion took place on September 14 in Moscow (Swissotel Krasnye Holmy).

During the event, the following topics were discussed: reduction of the underinsurance in the field of construction, transition from forced to voluntary insurance, capitalization growth and increase of the availability of the reinsurance. The participants also discussed the growing losses and forced cost reduction, the ways to increase the pricing transparency, the development of common quality standards in the field of insurance against construction risks, as well as many other issues that are important for this market.

The panel discussion was attended by the representatives of: insurance companies engaged in the insurance against construction risks; construction companies; self-regulating organizations (builders, designers, surveyors); organizations conducting the non-government appraisal of design documentation; public authorities (Ministry of Regional Development, Federal Insurance Supervision Service).

Radii Suleimanov, the Head of the Insurance Against Technical Risks Department, Ingosstrakh Insurance Company, also took part in the panel discussion. According to him, recently, the market for insurance against construction risks has grown significantly. Despite the fact that the share of commercial projects has sharply fallen, the share of projects subject to budget financing has increased, including due to the mega-projects. However, the market coverage heavily depends on the certain segments and regions. In general, the market coverage is quite high for the projects with budget financing (approximately 70-80 %), but it remains low for the market of commercial projects. Also, it should be noted that insurance against construction risks remains very attractive for the insurers themselves. The growing market has not been divided yet, the competition is very aggressive, despite the growing losses (36-40 %). But these figures are quite comfortable in comparison with losses in developed countries, where the market coverage is noticeably higher. According to the expert, in the near future there will be a few large-scale players – not more than two dozen – who will actually have a significant share of this market in Russia. And the top ten companies will control more than 80 % of the market.

Ingosstrakh Insurance Company has been working on international and local markets since 1947. The company is a national leader by the total amount of insurance premium in voluntary insurance sector (other than life insurance).

Ingosstrakh Insurance Company is authorized to render all types of insurance services (in acc. with insurance company specialization) specified in cl. 32.9 of the Insurance Law of the Russian Federation, as well as reinsurance Services. The company is present in 220 cities, towns, and settlements of the RF. Branches and subsidiaries of the insurer work in foreign countries and in former USSR countries.