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  • 2009 April 8

    Aleksei Timofeyev: "marine insurance market will grow in absolute figures"

    Aleksei Timofeyev, deputy Director General of RESO Garantia, head of the company’s board for VIP customers, tells PortNews IAA about the prospects of Russia’s marine insurance market.

     

    - How promising is the marine insurance market in Russia and in the world from the insurers’ point of view?

     

    If we speak about the global market of insurance, the share of marine insurance in total volume of insurance services has been steadily decreasing last decades (though the volume of insurance premiums grow, of course). Several decades ago, “the sea” accounted for some 50% of Lloyd’s premiums while today this share is approximately 1-2%. Russia sees the same situation:  for example, 20-30 years ago the share of marine insurance of Ingosstrakh being the only maritime insurer at that time was about 60%, while today it makes some 5%. In RESO-Garantia it is a little bit lower than 2% today including CNC, P&I and cargo insurance. Anyway, marine insurance (being an ancestor of all other types of insurance) will never loose its significance, at least while people sell, purchase and transport freight. Of course, there is a hope for promising development of marine insurance in Russia: the cargo base is to grow following the current fall hence the fleet will require renovation sooner or later; banks after all finance ship owners; United Shipbuilding Corporation has been created; media covers lots of positive trends in this sphere. The matter is how soon these perspectives will come true …

     

    - Do you expect the growth of marine insurance market in Russia?

     

    As I have already said, the fleet will require renovation and the market will grow in absolute figures of insurance charges. However, as for the share of marine insurance in total volume of insurance services, our company, for example will see the decrease of it as we are focused on retail though in absolute figures we plan to increase insurance charges in maritime sector. So speaking about the growth of the market as a whole we should speak about absolute figures rather than relative growth among other sectors of insurance.

     

    - What is the loss ratio of marine CNC insurance?

     

    It has a high level of loss. In the sector of CNC insurance, average loss ratio makes 80% sometimes reaching 100%. However, some segments of marine insurance are less and some are more loss-making.

     

    - In May 2009, International Bunker Convention will come into effect in Russia. Which Russian insurance companies are to make a pool of insurers for the relative risks?

     

    Nowadays P&I is covered by a number of companies in the Russian Federation including Ingosstrakh, RussianP&IPoolSkuld, VSK, Rosgosstrakh and a number of other companies hence it will not have a considerable impact on insurance charges as those risks are a part of P&I risks which have already been insured in most cases.
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