Development of sustainable insurance in Russia

Insurance companies in most developed and developing countries are paying increased attention to sustainable development issues over the past 10 years. The authors set a goal – to determine possible ways to introduce the principles of sustainable insurance in Russia in accordance with key business processes of insurance companies related to the formation of a client portfolio, the development of insurance products, operating and investment activities. The subject of this article is the development of sustainable insurance in Russia, taking into account national characteristics. Using methods of generalization and comparative analysis traditional for socio-economic research, the authors explore international experience in introducing the principles of sustainable development in insurance market and offer a number of recommendations to develop this area in Russia. The paper proposes the measures to expand product line and insurance conditions to cover key risks of sustainable development: climate and environmental; risks associated with life, public health and increasing inclusiveness. Particular attention is paid to the possibilities of introducing the principles of sustainable insurance in the context of increased sanction pressure on Russian companies, when companies are forced to shift their goals to the medium and long term, placing the main emphasis on social and corporate aspect. The authors identify the national factors that impede the promotion of sustainable development principles due to the structure of the Russian economy, where a significant part is occupied by fuel, energy and mining industries, and industry characteristics associated with ownership structure of insurance companies. The study examines the prerequisites for structural changes, such as linking executive remuneration to the performance of sustainable development indicators, which will require the development of key performance indicators and tools for measuring the effect of the measures taken. Such measures form the basis for further reducing the influence of the regulator in terms of implementing the principles of sustainable development.