DEVELOPMENT OF RUSSIAN INWARD REINSURANCE CAPACITY FOR OVERSEAS BUSINESS Dmitry Garmash Director,...
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Transcript of DEVELOPMENT OF RUSSIAN INWARD REINSURANCE CAPACITY FOR OVERSEAS BUSINESS Dmitry Garmash Director,...
DEVELOPMENT OF RUSSIAN INWARD REINSURANCE CAPACITY FOR OVERSEAS BUSINESS
Dmitry Garmash
Director, Ph.D. International Business Dept.Unity Re Ltd.
30th March, 2007г.President-Hotel, Moscow
For 2006 г. in Russia:
• Gross premium written in non-life insurance – $22,29 billion
• Gross premium written in inward R/I – $3,05 billion
• Inward R/I / direct insurance – 13,7%
23,1%
20,2%
• Overseas inward R/I share = 6,4% - about $196 million.
• 20-25% annual increase in inward R/I from overseas for last 2 years
160
198185
196
6.4
5.35.9
5.3
0
50
100
150
200
250
2003 2004 2005 2006
Mill
ion
US
$
0
2
4
6
8
10
12
14
16
18
20
(%)
GPW - inwardoverseasreinsurance
Share in overallGPW inwardresinsurance
Basic factors of inward R/I increase for today and for next 1-2 years:
• (re)insurers’ capital raise and enhancement + treaty coverage widening
• domestic market strength & narrowness search for new business sources
• expand of brokers’ geographical scope since 2004
• insurance cycle phaze demand for alternative markets
• stable demand for R/I coverage from emerging markets – Asia, Africa, Central & South America
Direction of inward R/I from overseas (cedants, GPW):
• close markets (CIS, Baltia, CEE)
• markets of stable cooperation (S.-E. Asia, Arabian region)
• markets of growing cooperation (America, Africa)
10%
75%
11%
3%1%
Quantitative aspects of inward R/I from overseas to Russia:
• regional difference in class structure
• basic classes: Property, Energy, Marine hull
• main channels: broker-reinsurer; broker-broker-reinsurer
• support for large global placements (>1 brokers, relatively small participation shares)
• “low-liquidity” risks placement (old brown-water fleets; risky single vessels, dangerous productions, under-market terms&conditions, dangerous territories)
Main market players dealing with R/I from overseas (professional reinsurers, insurers and brokers):
• Ingosstrakh
• Unity Re
• Kapital Re
• Moscow Re
• Moscow IC
• SOGAZ
• Rossiya
• Transsib Re
• Malakut
• Rifams
• Scanmarine
• Benfield
• PWS
• AFM
• Oakeshott
Estimated R/I capacity for overseas business:
Class Foreign business,
Million US$
Foreign business with Russian and former-USSR interest, Million US$
Property 25 400
Energy 15 200
CAR/EAR/MB 20 250
Marine Hull 50 120
Cargo 50 100
Aviation Hull 5 35
Development barriers:
• ratings and relative legislation
• regional borders
• available capacity
• incoming risks quality
• plecement terms & conditions
• global role of broker (documentary, payments, adjusting)
Developments aspects and perspectives:
• rating + financial strength enhancement
• regional brokers channel development
• further market M&A + foreign security for treaties demand for new sources of inward R/I
• region/class market niche stability
• more tight binding to worldwide/regional R/I market trend, environment and factors
• foreign capital in Russia and carefull U/W policy
THANKS FOR YOUR KIND ATTENTION!
For questions please contact:
Dmitry Garmash
Tel.: +7 495 203-5086, доб. 4946
Mob.: +7 926 203-7509
E-mail: [email protected]