Insurance is one of the cornerstones for transport safety Conference “ Transport safety” St. Petersburg, April 6-7, 2011
Main trends of insurance of transport and shipments in Russia by 2011 <ul><li>Casco is the leading product in transport insurance </li></ul><ul><li>The second in amount of collected premium is CMTPL / OSAGO – compulsory motor third party liability insurance . </li></ul><ul><li>Share of insurance of cargo shipments and responsibility of cargo land / motor carriers makes is very small (a digit less then other types of insurance) </li></ul><ul><li>Share or other shipments insured (water / railroad / air) is even less (from 0.01 to 0.2 per cent of total premium collected) </li></ul>
Russian insurance, premium collected in 2006-2010, bln. Rbls Russian insurance market has not yet recovered completely after shock in 2008-2009. The growth of 2010 has compensated only the previous fall .
Casco insurance in Russia in 2009 and 2010, mln. Rbls Premium collected in casco in Russia still stagnates. The growth in 2010 was only 0,9% in spite of increase of new cars sales .
CMTPL insurance (OSAGO) in Russia in 2009 and 2010, mln. Rbls CMTPL (OSAGO) – is one of a few insurance products where sales increased in 2010 in Russia .
In Russia casco and CMTPL (OSAGO) makes 25% and 16,5% oot toal premium collected ( while if the Russian North-West these sgares are 39% и 19%). Cargo insurance in Russia makes 3%. РФ
North-West of Russia is a region where insurance of cargo shipments and responsibility of cargo carriers as less used by businesses (its share is less then 2 per cent of premium collected in the region connected with 3 per cent share in Russia)
Almost 60% of premium collected consists of casco (38,6%) and CMTPL (18,8%). Shares of various kinds of premium collected in the Russian North-West in 2010
In spite of more than 100 insurance companies involved in insurance of cargo shipments only 20-30 companies form the vast majority of this segment of insurance market. Concentration of collected premium on leading companies increased by 2010.
Conclusions on cargo and transport <ul><li>Serious disbalance of the Russian insurance market towards casco and CMTPL (OSAGO) should be corrected by growth of insurance of cargo shipments and responsibility of cargo carriers as well as insurance of types of transport other than automotive . </li></ul><ul><li>State bodies have to pay attention to stimulating the insurance of cargoes and cargo carriers. It can increase the insurance cover of various participants of transport markets and may substantially increase transport safety in the country and its North-Western region . </li></ul>
New market for Russian insurance companies appears due to introduction of a mandatory insurance of owners’s responsibility for exploitation of a dangerous property in case of harmful consequences (the so-called “OPO”) including transport .
What should be insured Now Since 1st January 2012 Potentially dangerous property – on a VOLUNTARY basis Water constructions - on a VOLUNTARY basis Potentially dangerous property should be insured unconditionally а) dangerous property means property that has certain sings of danger (including petrol stations) ; b ) water constructions include tunnels, canals, water sluices etc.
Why insurance is important for transport safety? <ul><li>A research has shown that failure in logistics is the second reason ( the first one was mistake in product development ) in decrease of market share of a company </li></ul><ul><li>Insurance of cargo shipments and responsibility of cargo carrier is an inherent component of logistics . It cannot be ignored . Development of transport business is impossible without insurance . </li></ul>
Final conclusions <ul><li>Among various types of transport only automotive sector is insured well in Russia (it relates to property risks) . Other types of transport are lagging far behind . </li></ul><ul><li>Insurance of cargo shipments and responsibility of cargo carrier should be increased many times in order to provide enough transport safety in the country and North-Western region . </li></ul><ul><li>Beginning of mandatory insurance of owners’s responsibility for exploitation of a dangerous property in case of harmful consequences in 2012 will be a new challenge for Russian transport industry and for insurance companies . </li></ul><ul><li>In order to solve these tasks the Russian state authorities should coordinate activities in these fields with unions of insurance companies on the federal and regional levels. </li></ul>