VIG and BARENTS Re, the 2015 winners of the XPRIMM international award for outstanding contribution to the industry’s development.
VIENNA Insurance Group and BARENTS Re were the two winners of the 2015 XPRIMM Award for outstanding contribution to the development and evolution of the insurance and reinsurance market. The awards were handed during the XPRIMM Insurance Awards Ceremony organized within the Baden-Baden XPRIMM Reception 2015.
Throughout the years, the XPRIMM Insurance Awards have been granted to the companies and players activating on the re/insurance segment which distinguished themselves by an outstanding contribution to the development and evolution of the insurance and reinsurance markets on which they activate.
At the XPRIMM Insurance Awards Ceremony taking place during the Baden-Baden XPRIMM Reception 2015, the winners were VIENNA Insurance Group and BARENTS Re.
Dmitry GARMASH, Head of Moscow Representative Office, BARENTS Re (Panama)
XPRIMM: How would you describe the growth of the Russian insurance market by 2% in the first half of 2015?
Dmitry GARMASH: This figure is a dramatic drop down from growth rates the market experienced during 2010-2014. Unfortunately, it represents the overall Russian economy recession and comprises the more negative inner sectoral insurance dynamics. E.g. the number of policies issued across various lines of business decreased from 7% to 30% in the average; volume of corporate property dropped by around 11%; construction insurance is forecasted to sag by 30% by the end of the year. The macroeconomic environment grounding all these negative changes involves a severe devaluation of Ruble, 8-10% inflation and other threats. Insurance is a kind of “downstream”, derivative segment to the material sectors of economy – trade, construction, metallurgy, oil & gas, etc – so all negative trends there do finally affect insurance, and consequently reinsurance.
XPRIMM: Due to decision of the Central Bank of Russia, more than 40 insurance companies have left the market recently. How would you comment on that?
Dmitry GARMASH: The new, rather strict policy of CB, introduced two years ago, is directed to a completely right way to target market sanitation. The tough control over financial strength, quality of assets and correct market behavior should clean the insurance market from weak, non-professional, very small or empty and idle insurance companies to further concentrate services with the large, reliable players.