The Current State and Growth Potential of Voluntary Health Insurance Market in Russia

Abstract

In the article the authors consider the current state of voluntary health insurance (VHI) in Russia and assess the factors of influence its further development using general theoretical and statistical methods. Significant influence of the corporate sector on the VHI market was substantiated. It has been found that VHI, being a market product, depends significantly on demand and supply. In particular, VHI depends from the solvency of insured persons and inflation fluctuations where the increase in the cost of paid health care is of particular importance. Years of pandemics and geopolitical phenomena in Russia affected the incomes of citizens and businesses (especially for outbound tourism). This mirrored the losses and slow growth of the Russian VHI market. The decline in insurance premiums in the corporate sector on the VHI market significantly aggravates the position of this segment in the personal insurance market. Improving the insurance culture, affordability of VHI and stimulation of demand (incl. in the form of tax credits) remains a pressing issue, as the market has potential. Population welfare, insurance culture, availability and quality of insurance protection become starting points for the emerging VHI market in Russia.