KPMG presents its fifth annual survey of the Russian insurance market.
The economic downturn is adversely affecting insurance market growth drivers such as household spending power, lending and auto sales.
In the current unfavourable conditions, insurance company bosses are concentrating on maintaining profitability, focussing mainly on reducing expenses, including by improving their portfolio and holding back on its expansion, particularly in regions known to be unprofitable.
The market leaders view the situation calmly and expect favourable conditions for increasing their market share, while smaller players that do not have enough funds built up risk coming close to bankruptcy or having their licence revoked.
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