In a new report, Insurance in Russia: Market and IT Overview, Celent discusses key drivers in the Russian insurance industry and how insurers should be positioning their IT to take on upcoming challenges. Along with its BRIC peers (Brazil, India, and China), Russia is expected to grow fast in the coming decades. Since the fall of the Berlin Wall and the end of the Communist era, Russia has made significant progress towards capitalism. Even though the country needs to carry on its structural reforms, the Russian economy is growing at a fast pace and is attracting an increasing amount of foreign investments.
Celent believes the future development of the Russian insurance market will depend on different factors such as new regulatory reforms, the persistence of mistrust and unawareness of insurance in the population, the propensity of the market to further consolidate, and the level of foreign investments. Regardless of the impact of these factors, Russian insurers will have to implement initiatives in order to gain competitive advantage in this changing environment. Insurers that can effectively improve their core processes, efficiently value new investments in IT, and form new strategic partnerships will emerge as the new leaders.
"With strong growth expected in the real life and non-life insurance sectors and the rapid development of bancassurance, insurance IT spending in Russia will almost double during the next four years," notes Nicolas Michellod , senior analyst with Celent's insurance group and author of the report. "Core insurance processes in particular are still not efficiently aligned with companies' goals and not supported by proper resources in terms of information technology."
This report looks in greater detail at the size and structure of the Russian insurance market and discusses salient IT trends.