Insurance Market: 2025 Results

Key Events and Challenges of 2025: A Market in Reform Mode

2025 became not just a year of growth for Russia's insurance market, but a year testing its resilience and maturity. Total insurance premiums in 2025 reached a record 2.7–2.8 trillion rubles, demonstrating growth of 15–18% over the previous year. The industry simultaneously underwent tariff reforms, transformation of key products, pressure from digitalization, and shifting customer attitudes.

The major changes in 2025 affected three segments at once: auto insurance, life insurance, and medical insurance, the All-Russian Insurance Union (ВСС) told Argument Media.

OSAGO: Tariff Restructuring and Camera-Based Monitoring

Throughout the year, the Central Bank adjusted OSAGO parameters several times. In November 2025, the regulator expanded the base tariff corridor by 15% in both directions for all vehicles, except motorcycles, where the expansion was 40%. In parallel, the territorial coefficient (KT)—an indicator of risk level and insurance cost for property or life in a specific city or region—was revised. In Novosibirsk Oblast and the Republic of Ingushetia, KT was doubled (from ~0.9 to ~1.7). These are regions on the Central Bank's anti-rating for risks of dishonest actions in OSAGO. In other regions, the coefficient was actually reduced. As ВСС notes, the goal of these changes is to make tariffs economically justified and more targeted: careful drivers receive lower rates, accident-prone drivers receive higher ones.

Another key development was the advancement of the project to verify OSAGO policy possession through photo and video surveillance cameras. In spring 2025, the president ordered refinement of the violation administration mechanism, and in November the State Duma and Federation Council passed a law on penalty limits for OSAGO absence detected by cameras.

The insurance community supported the initiative. ВСС emphasizes that the measure targets not occasional violators, but those who systematically ignore purchasing a policy. This should:

• reduce the share of uninsured drivers,
• increase protection for road users,
• restrain growth in insurance premiums for conscientious vehicle owners.

Meanwhile, the number one challenge in OSAGO remains the situation with vehicle repairs. Today, the share of repairs through insurer referrals is only 5–7%, since service stations often refuse to work under OSAGO terms or don't conclude contracts with insurers at all. ВСС proposes a legislative solution: establish the injured party's right to supplemental payment for depreciation costs if the insurer paid cash and the vehicle owner repaired the car independently. The draft law is planned for submission to the State Duma in 2026.

OMC: Preserving the Role of Insurers

In November 2025, a law "On Mandatory Medical Insurance" was adopted, which preserved insurance medical organizations (SMO) in the OMC system. Previously, there had been discussion of transferring their functions to territorial funds, which would have effectively excluded SMOs from the system. ВСС emphasizes that preserving SMOs is critical for a competitive environment, improving quality of medical care, and protecting the rights of the insured. It's insurance representatives who accompany patients, interact with medical organizations and government bodies, and conduct quality audits of services.

The Main Systemic Risk: Growth Without Trust

Market participants cite declining customer trust amid industry development as the main systemic risk of 2025. In conversation with Argument Media, the Director General of the National Agency for Financial Studies (NAFI) Guzelia Imaeva notes:

"This year, 2025, became a year of growth for the insurance industry against a backdrop of increasingly complex client relationships. In the nine months of 2025, insurers' premiums grew by nearly 15%, but this very year revealed a clear gap between the industry's economic momentum and Russians' perception of insurance companies."

According to NAFI data, 44% of Russians still see practical value in insurance. This means the problem isn't with the product itself, but with the customer experience. Russians have increasingly begun abandoning insurance after negative situations, and if the trend continues, it could limit growth in voluntary segments.

ВСС identifies as an additional risk factor the simplified perception of insurance as a "mandatory tax," especially in OSAGO and credit products, which intensifies when policies are sold through marketplaces without emphasis on service and payouts.

The Industry's Main Achievements: Resilience, Trust, and Digital

Despite challenges, the insurance market demonstrated several achievements in 2025. First, the industry withstood the pressure of the past three years and not only survived, but moved forward. Insurers played an important role in liquidating the consequences of emergency situations, including large-scale payouts for floods. In the first half of the year alone, insurance company payouts for cases related to property damage and construction-installation risks totaled about 8.2 billion rubles. Moreover, the average loss settlement period for mass claims was reduced to 7–10 days thanks to implementation of remote inspection systems.

Second, a qualitative leap occurred in digitalization. If three years ago insurers were compared unfavorably to banks, today the gap has significantly narrowed. Electronic settlement, "short" policies, and restructuring of internal processes became locomotives. By the end of 2025, the share of insurance cases settled entirely online (through apps and Gosuslugi) reached 45% in the OSAGO segment and 30% in home insurance.

Digitalization, VHI, and Cyber Risks: SOGAZ's View

SOGAZ identifies flexibility, personalization, and subscription models as the key trends of 2025. SOGAZ SOGAZ's press service told Argument Media:

"In the consumer market, this is reflected in growing demand for subscription and modular models. Clients want to receive services quickly and have the ability to process them online, to use insurance services when the need arises."

In 2025, SOGAZ launched subscription products for apartment insurance, accident insurance, and also the "VHI Start" program with monthly payment and pause capability. For now, the product is available in Moscow, St. Petersburg, and adjacent regions, but geography will expand.

In the corporate segment, VHI remains one of the main drivers. Personnel shortages and workforce aging are forcing companies to expand benefits packages. Multiyear VHI contracts for 2–3 years are increasingly common, and businesses are more actively using HR platforms for managing employee health.

A separate trend was the exponential growth in demand for cyber insurance. Over the past six months, cyberattacks shifted from hypothetical risks to business reality (damage in Russia in 2025 is estimated at 1.5 trillion rubles). Cyber risk insurance is especially actively requested by heavy industry companies, the financial sector, IT, retail, and oil and gas. Currently, Russia's cyber insurance segment is already valued at 2–3 billion rubles and could grow to 5–10 billion rubles in coming years.

New Year's Wishes from Market Representatives

The insurance market in 2025 continues to grow, reform, and digitalize, but the key task for the future is restoring and strengthening trust.

The All-Russian Insurance Union would like to wish the insurance community to remain united and strong. To insure means to help in difficult moments, to participate in building financial plans for the future, and to protect what's most valuable.

And NAFI Director General Guzelia Imaeva noted:

"First and foremost, devote more attention to tuning communications with clients. Increasing transparency of terms, predictability of settlement, reducing barriers in client interaction—these are precisely the factors capable of returning positive momentum to perceptions of insurance companies. In 2026, those players will win who compete not only on products and price, but on quality of customer experience".