Captive Insurance in Russia: Current State and Prospects for Further Development

DOI

10.2991/essd-19.2019.107How to use a DOI?

Keywords

captive insurance companies, industry and financial groups, redistribution of risk

Abstract

This study focuses on the economic relations that occur in the process of designing strategies for captive insurance companies. In Russia, captive insurance forms appeared comparatively recently, mostly in financial and banking groups: it was in this period that the largest insurers were set up, such as Renessans-strakhovanie, Sberbank-strakhovanie and VTB-strakhovanie. Negative macroeconomic factors have rendered captive insurance ineffective, which means that in order to retain their position on the market and develop, captives need considerable structural transformations. The objective, subject matter and the focus of this study were determined by the high theoretical and practical relevance of captive insurance research. Research objective: to design an adaptive development strategy for a captive insurance company by taking into account the factors that shape the development of captive structures on the Russian market. The methodological framework of this study is based on the graphic, statistical, and economic-mathematical methods of data processing. Main results: 1. This study provides a systematized classification of captive insurance companies highlighting the key features captives should retain in order to preserve the corporate structure in the modernizing insurance market; 2. The model of combined risk insurance for an industry and financial group (IFG) is proposed; 3. A mechanism of shifting risk to an external reinsurer is described. Main conclusions: 1. A comprehensive description of the captive reinsurance mechanism based on risk shifting is described; 2. The authors hypothesize that the structure of captives should be optimized.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Elena Razumovskaya
AU  - Larisa Yuzvovich
AU  - Yulia Istomina
PY  - 2019/07
DA  - 2019/07
TI  - Captive Insurance in Russia: Current State and Prospects for Further Development
BT  - Proceedings of the 2nd International Conference on Education Science and Social Development (ESSD 2019)
PB  - Atlantis Press
SP  - 488
EP  - 495
SN  - 2352-5398
UR  - https://doi.org/10.2991/essd-19.2019.107
DO  - 10.2991/essd-19.2019.107
ID  - Razumovskaya2019/07
ER  -