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Today Insurers already state satisfaction concerning expected annual results: 20-30% growth of premiums - it is preliminary forecast of classical insurance market development within the last year (on results of the first half-year, the volume of the collected premiums has on 28% exceeded similar parameter in 2006). According to experts’ estimations, current year also promises good growth. According to insurance company Allianz, in following year classical insurance market will put on weight 40-50 %, and in absolute parameters it will reach $1,8-2 billion.
Life insurance companies show even more impressing results. The gain of premiums by results of the first half-year has made 67 %. According to national manager of Grawe Group in Ukraine, unlike venture capital market, where approach of a stage of achievement of critical weight minds of consumers concerning necessity of insurance and its advantage has already settled down, in life insurance this effect is late a little and will come little bit later. Accordingly in 2008 rates of growth of life insurance market will be essentially higher, than classical.
Also the tendency of the last years - reduction circuit insurance will proceed. It is caused by active demand for real insurance services and toughening of insurance branch regulation, directed on reduction of tax optimization. Thus, in total amount of insurance payments the share of financial schemes will decrease up to 40 %.

Purchase of company “Region” is the second step of If’s strategy in Russia. Last spring If has opened branch with branches in St.-Petersburg and Moscow.
The head of operations of group If in Russia and Baltic has explained  If will continue to serve corporate clients from Scandinavia rendering qualitative services, but the today’s agreement also allows us to enter the internal Russian insurance market.
On the preliminary data, in 2007 the collected premiums of “Region” have made nearby 23,7 million euro. The basic part of insurance payments has been collected under contracts of property insurance.
The insurance society “Region” works since 1993. The company has 8 offices of sales in St.-Petersburg and regional network from 16 branches. “Region” is noted by the national premium “Financial Russia-2007″ as the best company in St.-Petersburg.

Despite all forecasts, global changes have not occurred, all players have remained in the market, and monopolization has not occurred. Moreover, it has not occurred and predicted absolute destruction of fine tour agencies has not ceased to work. Certainly, in result of innovations tour agencies began to concern more closely to the client, to legal subtleties at drawing up of the contract, and it is the positive moment. The discontent of tour agencies with the law resulted at all that all of them unfair and it would be necessary to pay the insurance premium more often now. On the contrary, there are many firms, which work with the clientele from year to year due to expensive trips, and it is natural, that they are interested to serve it as much as possible well. It is clear, that such tour agencies had a natural irritation from the law.
In the insurance market of going abroad tourists situation is not so good, and it is connected with an old problem of parity «the price- the sum of insurer’s responsibility». It is clear, that tour operators are the basic channel of sales of tourist insurance. And they, naturally, aspire to reduce the price of insurance product, and try to dictate their terms to the insurance companies.

In view of maintenance of reflexivity guarantee for the preferential long-term credits, involved for hypothec crediting development, Interbank insurance company “IShONCh” has introduced new insurance product “complex hypothec insurance”.
For last years in the market of hypothec insurance faced essential changes. So, banks put into operation with insurance companies in order to estimate risks quickly, qualitatively more actively, having satisfied requirements of bank, and its client; the insurance companies should be able estimate risks of the concrete insurant quickly. Thus the insurance company should remember, that the taken responsibility should be obtained, obligations at approach of insurance case should be carried out.
Recently speed of risks estimation of the bank-borrower and of insurance policy registration became not that that competitive advantage, but simply vital necessity. The hypothec market develops; the level of banks and the insurance companies grows.

Forms of mutually taken obligations reinsurance contracts are subdivided on:
- facultative (unessential);
- obligatory (obligatory);
- facultative-obligatory, or “the open covering � contracts.
Facultative reinsurance contracts were the earliest form of reinsurance contracts. Such contract represents the individual transaction, concerning one risk. Its distinctive feature is that as reinsurer has the opportunity of individual estimation of risk to the overcautious person: reinsurer - in the decision of a question, how many it is necessary to leave in own risk (own deduction), and to the overcautious person - in the decision of questions of risk acceptance in certain sum. The negative party of facultative reinsurance is that reinsurer should transfer a part of risk up to the conclusion of the contract with the insurant. By virtue of it the overcautious person has a small time interval for the detailed analysis of received risk.
The contract of obligatory reinsurance obliges the reinsurer to transfer the certain shares to all risks accepted on insurance if their general insurance sum exceeds certain in advance own participation (guarantee) of the insurer. On the other hand, this contract imposes the obligation on the overcautious person to accept the shares of the offered risks. Such kind of the contract is most favorable for reinsurer as all in advance certain risks automatically receive insurance maintenance at the overcautious person.
The facultative-obligatory (transitive) form of the contract gives the reinsurer decision-making freedom: concerning what risks and in what size it is necessary to transfer. In turn the overcautious person is obliged to accept shares of risks on in advance stipulated conditions.

Reinsurance is one of insurance kinds and the major mechanism on risks redistribution. Reinsurance allows to compensate fluctuations and to reduce damage potential. It is a system of economic relations according to which the insurer, accepting to insurance on them (in view of the financial opportunities), transfers risks, a part of the responsibility on the coordinated conditions to other insurers with the purpose of creation of whenever possible balanced insurance portfolio, financial stability maintenance and insurance operations profitability.
How does it work? Let’s consider the certain insurance company working in the certain region. In current period the insurance company regularly carried out of the obligations. But suddenly powerful downpours have fallen upon region; the rivers have overflown banks and have flooded practically all. During one moment the sums on payments have exceeded the insurance fund and the company was not able to pay them.
Now we shall assume, that understanding this problem, the company has reinsured the risks in the large Russian company, working in all territory of Russia. In that case, the regional company will pay only a part of the sum, and the rest will be paid by the large company for which this payment will not be catastrophic as it insures not only the given region.

There is also a need for the state support - in fact, insurance support (in a counterbalance to direct payments from the budget to the suffered agriculture producers), which allows to use budgetary funds more rationally and to reach greater effect at smaller expenses. On the other hand, the state support of insurance is directed on overcoming of those natural restrictions, which prevent agrarian insurance development in cleanly market conditions – low profitability, complexity of tariffing, etc. Hence, state support allows reaching reduction in price of insurance for agricultural manufacturers through the mechanism of the insurance premium subsidizing, and also puts public services into operation on granting the information and methodological help to the insurance companies. Interaction of the state, insurers and insurants is based on observance of three important principles:
• Information transparency, which foresees active exchange of a trustworthy information between establishments and the organizations, representing the different interested parties;
• Stability of the same establishments existence (the Law on agricultural risks insurance in Spain has been accepted in 1978, and it has not been changed since then);
• Spirit of cooperation between agrarian insurance market participants.
Specificity of crop and definition of damage insurance contract imposes a number of difficulties at work on voluntary insurance on market conditions. Every Russian underwriter or expert on payments knows these problems. Voluntaries of insurance means also the special approach in risks’ portfolio management, and complexities with diversification (including territorial), and difficulties in establishment of limit for own deduction (both on separate regions, and on areas and on facilities).

 

During last five years the market of building risks insurance develops dynamically. In 2005 almost 80 % of building operations were insured, thus the cumulative insurance premium on construction risks insurance has made 5,3 billion rubles. For comparison, in 2000 the share of insured risks made only 30 %. In 2006 the market has grown almost on 40 % and has got 9,0 billion rubles of the insurance premium. And though adjusted totals for 2007 are not brought yet, according to the forecasts, existing dynamics of growth of building risks insurance market is kept. We expect, that the cumulative insurance premium on insurance of construction risks for a year will make nearby 12 billion rubles.
There are some reasons of growth. First one is that the general rise of the building market, as a whole, and also increases of interest to insurance of building risks affects investors and customers. Development of the market occurs basically due to activization of operations on insurance of social and construction works. Secondly, new kinds of insurance - such, as insurance of after-building guarantee shows that, insurance of the responsibility under state contracts have started to develop actively.

 

The second annual conference “Modern ways of financing of the commercial real estate: leasing, design financing, IPO”  will offer case study in the context of which leasing experts will tell detail about practical questions of the real estate leasing transactions.
In experts’ opinion, absence of precise legislative regulation of legal procedures of registration of transactions with real estate is to become one of the primary factors, braking leasing development, as way of commercial real estate financing.
So, absence of procedure on real estate leasing transactions registration allows each registering body to carry out it in own way.
Also one more essential moment relies in opacity of the market of the commercial real estate, both as market of “seller”, and its inadequacy, to the pure and transparent financial tool - to leasing.
At the second annual conference “Modern ways of financing of the commercial real estate: leasing, design financing, IPO ” which will pass on May, 15th, at hotel Marriott Grand, experts will in detail tell about practical questions of real estate leasing transactions.
In case study leasing companies, which representatives will tell about pluses and minuses of this way of financing of projects on example of concrete transactions, will also participate.

 

 

 

Russian market of crop insurance is characterized by number of essential features. First of all, it suffers risk of the raised unprofitability, including due to significant losses from natural cataclysms (a drought, a frost, a hailstones, etc.), secondly, absence of actual statistics on unprofitability complicates work - such statistics is not being carried out from the moment of general insurance system disintegration.
Today Russian Agriculture insurance develops in the context of «Spanish model», which overall objective stabilization of farmers’ incomes and involving them in risks management. The system of agrarian insurance in Spain is constructed on interest and, accordingly, interaction of three basic participants - agricultural manufacturers, insurance companies and government. Agricultural manufacturers are interested in receiving insurance protection at the minimal cost. Insurance companies wish to conduct insurance operations with sufficient profitability degree, and thus test the certain shortage of the necessary information and methodological development for work with agrarian sector. And the government, from its part, pursues the state interest, wishes to create conditions for stable work of national agrarian sector in order to protect the manufacturer at minimal public costs.