Russia's insurance market splits in 2025: Growth in some, steep declines in others
Russia's insurance market saw mixed trends in 2025, with some sectors growing while others declined. Total premiums collected by insurers rose by 6.9% year-on-year, reaching 4 trillion rubles. However, the growth rate slowed significantly compared to the previous year.
Mandatory third-party liability insurance (MTPL) premiums remained nearly flat, totaling 330.3 billion rubles—a slight dip of 0.5% from 2024. Meanwhile, comprehensive car insurance (CASCO) saw a modest increase, with premiums climbing 4.9% to 338.8 billion rubles.
Borrower insurance experienced a sharp decline, with premiums dropping by nearly 25% to 176 billion rubles. Endowment life insurance (ELI) also fell, shrinking by 15.8% to 1.2 trillion rubles. Investment-linked life insurance (ILI) stood out as the fastest-growing segment, with premiums surging 81.6% to 911.5 billion rubles. However, legislative changes later halted new ILI policies from 2026 onwards. In its place, unit-linked life insurance (ULI) was introduced in 2025, allowing policyholders to invest in mutual funds. ULI premiums reached 26.5 billion rubles in their first year.
The 2025 figures highlight shifting dynamics in Russia's insurance sector. While investment-linked products saw strong demand, traditional policies like borrower and endowment insurance faced declines. The introduction of ULI marked a regulatory shift, reshaping long-term investment options for policyholders.
