Regional Aspect of the Russian Insurance Market

Regional disproportions of the Russian insurance market have a considerable impact on insurance coverage of regional needs. The development of insurance relationship results from high-quality and structural changes in insurance interests both in corporate and in retail insurance, in voluntary and mandatory forms. Regional conditions define the quality and dynamics of insurance offer. At the same time, organizational, legal, financial requirements to insurance companies do not consider their specificity. Therefore, regional organizations are driven out from the market. Moreover, an insurer, especially in personal insurance and property and casualty insurance, remains with representative offices of the federal companies offering the uniform customs and not assuming individual approach. The results of the study have proved that during the development of Russian insurance based on market principles, territorial disproportions had a significant impact on the satisfaction of insurance interests. Currently, the situation has been aggravated due to increased insurance supervision, increased requirements for the authorized capital of insurance organizations, asset quality, significant additional costs for the transition to a new chart of accounts, XBRL data formats at the request of the Central Bank of Russia, the development of insolvency, temporary administration, bankruptcy. Additional diversion of resources to counter «insurance lawyers», the settlement of problems with the Federal Anti-Monopoly Service (FAS) significantly affects the financial condition of insurance organizations, which are not in the list of the top 50 insurers. However, the access to the insurance services is not equal. Thus, in any region and locality in the country, consumers can not obtain insurance products of the required quality, even in the case of MPTL insurance for car owners. The conditions are unequal even for the settlement of claims in the area of insurance risks. We have considered the characteristics of the regional development of the insurance market and proposed additional criteria for their evaluation. We have identified the main problems of regional development, proposed a number of organizational and regulatory innovations to optimize the structure of the market. On the basis of the system comparative analysis of the regional insurance markets of Russia, we have concluded that there is a need for different approaches to determining the directions and key indicators for the development of regional insurance markets. The state of regional insurance is compared with the specificity of the regional economy, which is the basis for the development of insurance. We propose different requirements for the federal and regional insurance organizations. We have suggested new approaches to the regulation of regional insurance companies, which will allow to equalize supply and to improve the quality of insurance services in regional insurance markets.