Seen at Business Insurance:
“The very rapid expansion of retail business lines has led to important changes in the operating environment, exposing local insurance companies to the risks of inadequate pricing and reserving in less mature segments,” said Anastasia Voronkova, associate director with Fitch’s insurance team in Moscow.
Fitch noted that motor lines were a key driver in the 18% growth of the non-life insurance segment through the first nine months of 2007. However, motor “contributed to the worsening of loss trends in this segment,” Fitch noted.
That sounds like it’ll be an entertaining mess to clean up. ![]()
(Obligatory bad Yakov Smirnov joke: In Soviet Russia, the insurers can claim YOU.)