Swift Increase in Quantity or Amount over a Given Period
Insurance firms are venturing into Crimea and new Russian territories, as per a survey by "Kommersant". Companies like Sogaz and Rosgosstrakh are setting up offices there, with Sogaz opening a retail office in Simferopol earlier this year. Others, such as "PSP Insurance", started operations in Crimea and DNR in 2024.
Expansion in these territories offers a substantial business opportunity, according to expert Andrei Barkhota. The potential market size could grow from the current 30-50 billion rubles to 135-175 billion rubles in a few years. Smaller companies like "Astra-Volga", "Gaidé", and "Hathor" are already operating in these regions.
The presence of these insurance companies caters to the needs of both businesses and individuals. Sogaz, for instance, offers property and liability insurance for businesses, while Rosgosstrakh provides construction and civil liability insurance for legal entities. Private clients can obtain online CTPL from Rosgosstrakh or through partners.
However, insurance in these regions is fraught with legal risks, as these territories undergo integration into Russian legislation. Significant challenges lie in the legal uncertainty, leading to potential regulatory changes and disputes, especially during times of armed conflict or emergencies.
Navigating these risks requires strategic risk assessments, adherence to international sanctions and local regulations, public relations, and stakeholder management. Companies must diversify operations, have contingency plans, and maintain ongoing dialogue with regulatory bodies to ensure smooth operations and to mitigate risks.
In light of the potential legal complications, the decision to enter these regions demands careful thought and considered planning.
- Sogaz, a notable insurer, has integrated into Crimea's business landscape by opening a retail office in Simferopol, offering property and liability insurance for businesses.
- Other insurers like PSP Insurance have been operating in Crimea and DNR since 2024, expanding the insurance market in these regions.
- The growth potential of the insurance market in Crimea and new Russian territories is significant, growing from an estimated 30-50 billion rubles to 135-175 billion rubles in a few years.
- Navigating the legal risks in these regions, such as potential regulatory changes and disputes, requires strategic planning, adherence to international sanctions, local regulations, and ongoing dialogue with regulatory bodies.
