Russian security

The challenging economic situation pushes many international companies to look at alternative markets that can provide good reinsurance security at a realistic price. That is exactly what we believe the Russian market offers and we actively promote the Russian market on this basis!

Russia is today one of the fastest growing and developing insurance markets in the world and is the largest in Central and Eastern Europe. This factor linked with the ongoing integration of Russia into the world financial market, general economic growth, government support and improved regulatory regime has led many international insurance companies to more actively consider Russian reinsurance capacity alongside other traditional markets.

The aggregate chartered capital of the top 30 Russian Companies reached more than 700 million USD Dollars and the total volume of premiums collected by the top 30 for the year 2008 is about 12,5 billion US dollars.

Traditionally some activities dominate the Russian economy and as a result expertise in the insurance/reinsurance of Power and Energy, CAR, Metallurgy, Marine, Aviation and Space risks is very well developed in the Russian market The major companies provide insurance/reinsurance services for all of the classes of insurance; however there are also many companies who focus on a particular class of business and they are accepted professionals in the area of their specialization in Russia and are also recognized internationally

Despite the lack of high international financial ratings (the highest rating of the local insurer is BBB-S&P) the companies’ profile and other economic parameters such as the assets, the amount of insurance reserves, the volume of income and net worth, etc. demonstrate that there are very reliable and responsible companies in the market.
A significant factor is that many companies have very reliable reinsurance treaties for different lines of business - placed with reputable, highly-rated and financially stable international reinsurers. Treaties placed for marine hull, cargo and aviation as a rule cover both domestic Russian business and international risks. That allows the Russian companies to offer tangible capacity for international Cedants and the Cedants enjoy more competitive solutions with reliable security.

Challenge Group is a well recognized brand name in the Russian market. Having a significant presence in the region Challenge Group with its team of Russian experts, has a number of advantages when placing international risks in Russia. The most important is the deep understanding and knowledge of the Russian market, its capacity and potential, local legislation, as well as the ability to assist with negotiation of rates, terms and conditions with reinsurers, full documentary support specific for the country, intermediation in premium and indemnity payments, etc. This is further enhanced by our in house legal and accounting resources.