Expansion of foreign capital into Russia’s insurance market in 2005-2015. Results and prospects.

Abstract

Since the nineties of the last century and up to the present day the Russian insurance industry has passed several stages of development. The authors of this article examine the role and share of international companies in Russia’s insurance market, heydays of their activities in Russia and their period of stagnation that followed later. Furthermore, in this article the root causes of the expressed interest of foreign holding companies in the national insurance market in the mid-2000s are analyzed as well as the main mistakes of foreign investors which resulted in huge losses and hence winding down of their businesses in some of the insurance segments. In conclusion, the overview of the current situation with foreign investments in Russia’s insurance sector is provided, and the development prospects for the national insurance business are evaluated.