The insurers’ profit for the first quarter fell by almost a third, to 49.4 billion rubles.

Profits of insurers in the first quarter fell by almost a third, to 49.4 billion rubles, according to the Bank of Russia. The profitability of the insurance market decreased, but remained at a high level – 25.6%.

“Insurance payments grew by 16.2% in the first quarter, to RUB 185.3 billion, thanks to an increase in payments on completion of medium-term investment life insurance contracts. At the same time, there was a decrease in payments for most of the main types of insurance, ”the Central Bank said in a statement.

The main driver of the insurance market development at the beginning of the year was a significant increase in credit life insurance following a rapid increase in mortgage and consumer lending to individuals, the Bank of Russia reports. The premiums on life insurance of borrowers increased by almost 20%, on insurance against accidents and diseases – by 30%. This trend is likely to continue until the end of this year, the Central Bank said. According to the forecast of the Bank of Russia, the growth of lending to the population will accelerate in 2021.

At the end of 2020, the Central Bank presented statistics on the results of the activities of insurers for the nine months of 2020. From it we can conclude that the restrictions due to the coronavirus played into the hands of insurers – the market came out of stagnation. The total volume of insurance premiums amounted to RUB 1.14 trillion. (an increase of 3%, while a year earlier it was only 0.7%).

Read more in the publication “Kommersant” “Insurers have developed antibodies.”