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. Last Updated: 07/27/2016

Insurance Sees Slower Growth

Revenue growth in the insurance industry has slowed sharply to a mere 8.1 percent in 2002 as insurers stop writing life insurance policies as a corporate tax dodge, industry experts said.

The Finance Ministry announced last week that insurance companies collected 300.4 billion rubles ($9.6 billion) in premiums in 2002, based on data from 1,200 companies.

Growth was 62 percent in 2001 and earlier had climbed as high as 130 percent. Meanwhile, benefits for classical forms of insurance are growing faster than premiums by 20 percent, according to Finance Ministry data.

Life insurance contributions accounted for about 35 percent of total premiums in 2002, compared with about half in 2001.

Receipts from other forms of voluntary insurance grew by 38.9 percent. Property insurance grew by 54.9 percent and third party insurance grew by 32.1 percent.