Danielsson: Like in many other countries motor insurance is definitely the most purchased. The primary demand is for the motor third-party liability that every driver is required to have by law. People with new cars and a little more money are also interested in accident cover. Apart from this, we're not really seeing a big demand for property insurance like in the rest of Europe.

Danielsson: In my experience there is a difference between "must have" products and "good to have" products. "Must haves" are what the law requires or what the bank requires to get loan to buy a house or apartment. "Good to have" programs like accident and life insurance are still not wide-spread compared to western Europe, but their popularity will grow as the economy develops.

Danielsson: Most insurance revenues in Russia come from the oil industry which is very big in this country. Buyers are looking for cover for oil refineries, transportation and other related large companies. However, if we look at the number of policies, most of them are in motor and health insurance lines.

Danielsson: The Russians prefer to stay special and often get irritated when they hear there is no big difference to other countries. But there really isn't. There is no other sphere which is so well connected with the society as insurance. Health insurance is influenced by the development of the medical system, motor insurance by the growing number of cars. So the Russian insurance market is following European patterns. As the economic standard of living of the average person outside of Moscow approaches western European levels, the insurance market in Russia will become more like what's in, say, Germany or Switzerland.

Danielsson: The Russian insurance market is not yet as stable as in western Europe. There are still many smaller insurance companies which are not managed properly and run the risk of not being able to pay claims to their customers when they need it. On the other hand, there are many positive features as well.

Danielsson: In my opinion, for example, the health insurance system in Russia is quite efficient. It contains different parts. The first is mandatory and guaranteed by the state. The second is health insurance provided by the majority of employers as a social benefit for their employees, allowing them to get medical treatment in better clinics. In addition to that, individual customers can also purchase health insurance policies privately.

Danielsson: I totally agree that Germans, for example, really like to make sure all risks are controlled and planned for several years ahead, whereas Russians are more focused on today. If you say "long term", in Germany, people interpret that as around five years, while in Russia it would mean no more than five weeks. But that's just Germany.

Also, I'm not so sure it has to do with risk tolerance, at least not entirely, because in Russia people are just as worried about their houses or cars as in Western Europe. But there is an issue of trusting in the long term. People in Russia have gone through far more rapid changes than in many other countries. Therefore perhaps it is more difficult for them to believe they can plan things so well.

Danielsson: I think there is a visible entrepreneurial spirit in Russia. You can clearly see the difference between Russians and Germans, for example, how they handle their tasks. If my Russian colleagues are supposed to do something, they start doing it immediately. If my German colleagues get a task, they start planning how to do it. They will probably both reach their targets but in very different ways.

Entrepreneurs try to do something new, see if it works, and otherwise stop and try another way. This is typical for the Russian culture. In general I think that Russian managers are rather better equipped for a fast-changing global world than average European managers.

The Russian insurance market is growing rapidly. In 2011 the Life insurance market grew 53 percent, and the Property & Casualty revenues grew 17 percent. Market volume for Property & Casualty insurance in Russia reached 15.8 billion euros, whereas Life insurance only reached 890 million euros. Over 60 percent of premiums are accounted for by the top ten market leaders, which, except for Allianz, are mostly national insurers.

Allianz Group entered the Russian market in 1990 with the launch of a subsidiary. In July 2001 Allianz acquired 45.47 percent of ROSNO stock and in 2007 became its majority shareholder, which helped Allianz to expand significantly on the Russian market. In the same year, Allianz SE purchased the insurance company Progress-Garant. 

In 2011 the three units were integrated under the overall brand Allianz Russia. Today it is one of the largest insurance companies in Russia, providing service to more than 18 million customers and 50,000 companies and other organizations.

was born in 1961 in Sweden. He holds a Masters degree in Mathematics and worked as an Actuary from 1987 until 1991. He then served as the Chief Actuary for Stockholm Re where he was appointed CEO in 1992. From 1994 he served as Deputy CEO and CEO at various companies. In July 2011 Mr. Danielsson was appointed the President of ROSNO (now IC Allianz) in Russia.

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