OREANDA-NEWS. November 15, 2010. Ingosstrakh acted as a strategic partner of the annual forum of top managers 'Future of the Insurance Market' organized by the Expert RA rating agency. O.O. Pilipets, Deputy Head of the Federal Insurance Surveillance Service, A.S. Kigim, President of the Russian Union of Insurers, P.B. Bunin, President of the Russian Union of Motor Insurers, A.V. Uriev, President of the Liability Insurance National Union, heads of top insurance companies, journalists and experts took part in the event.

The main goal of the forum is to consolidate the insurance community for further promotion and support of the insurance market modernization, and define the core issues of its development, to find ways of their solution, exchange opinions and form a common attitude of the insurance branch leaders.

The participants in the event discussed such issues and themes as adoption of an appropriate strategy for the insurance market, introduction of new types of compulsory insurance, results of the financial crisis, enhancement of reliability of insurance companies, problems relating to the insurers’ solvency and ways of boosting the population’s loyalty to them.

Alexander Grigoriev, Director General of Ingosstrakh, took part in the forum. Speaking about the preliminary results of 2010 for the insurance market, he especially marked that from the point of view of collection charges the year is more successful, than experts expected, and this is due to two factors: the growth of personal insurance, that is, voluntary medical insurance and accident and health insurance, and compulsory motor third party liability insurance. As to other segments, such as, motor hull, insurance of property of individuals, insurance of cargos, etc., the forecasts of the Ingosstrakh experts proved to be true. The market has grown by 5% since the beginning of 2010, however, it is still less that in the pre-crisis 2008, which means realization of the “bottom” for many companies, and understanding of what is to be done next.

Among the negative trends in the insurance market A. Grigoriev mentioned damping in the corporate property insurance sector, which faces a critical situation. As to motor hull, we can observe the reduction of damping: the major players of this market have raised the tariffs, and there are almost no serious companies dealing with damping left therein. A. Grigoriev marked two trends in the compulsory motor third party liability insurance market. The growth of the regional ratios and improvement of the situation in the regional markets of the compulsory motor third party liability insurance, on the one hand, and a significant growth of payments by 10 points for the compulsory motor third party liability insurance market in general, on the other hand.

Speaking about the insurance market regulation, Alexander Grigoriev emphasized that IFRS and actuarial audit should be the most efficient tools, in his opinion. As far as assets and reserves of the insurance companies are concerned, the regulation should be as tough, as in banks.  'Planned accounting and audit and control of reserves and assets will ensure the market stability', - Mr. Grigoriev stated.

As to the introduction of new types of compulsory insurance, A. Grigoriev pointed out that it is necessary, as it teaches the public to protect its interests. However, there should not be too many of such types of insurance. Especially, Mr. Grigoriev was positive about the law on the agricultural insurance, but emphasized that 'there are two methods to launch the overall agricultural insurance.  The first option implies compulsory insurance of the catastrophe risks only, and payments made with a subsidy, only if other risks are covered. The second option is like this: to abolish the compulsory agricultural insurance at all, and leave subsidies for the bank interest, fuel and seeds, but to make insurance a condition of the subsidy receipt. 100% of the agricultural areas will be insured in a year, and the state will spend nothing on it'.

'Speaking about 2010, - Alexander Grigoriev marked, - the most important result is that the state has finally paid attention to insurance and begun to understand that its problems deal not only with insurers alone, but also with the country and its population as a whole. It is necessary to work out a strategy of the insurance branch development with the goals clearly expressed by the state'.

Additionally, the insurance companies were awarded in various nominations within the framework of the forum ' Future of the Insurance Market'. Ingosstrakh has won 4 prizes: for the top position in motor hull, water transport and professional responsibility and foreign travel insurance.