A target model for the Russian insurance market development: Customer-centric transformation and best practices of foreign countries

Abstract

Subject. This article examines the indicators of the Russian insurance market and the key problems of its functioning. Objectives. The article aims to analyze the indicators of the Russian insurance market for 2005–2022, identify the key problems of its functioning, build a target model of market development based on the practices of foreign insurance markets, develop a set of recommendations to solve the identified problems and assess the potential effectiveness of the proposed measures by forecasting and modeling market performance indicators in the long term as a result of the implementation of the developed recommendations. Methods. For the study, I used a content analysis, correlation and regression analysis, and the expert assessment method. Results. The article finds that the key problems of the Russian insurance market functioning are due to the high level of its operating costs, which is largely a consequence of the dependence of the insurance market on the banking sector. The article proposes certain measures, including legislative reforms aimed at strengthening regulation in the field of consumer protection and regulation of types of insurance, as well as a number of measures for implementation at the level of insurance companies. The article also presents the author-developed forecasting models regarding the transformation of the market by 2027. Conclusions. To improve the efficiency of the Russian insurance market, it is necessary to implement a set of measures for its customer-centric transformation, taking into account the best practices of foreign insurance markets.