Transformation of Regional Insurance in Russia: The Case of the St. Petersburg Insurance Market

The study is topical because of the importance of insurance mechanisms for regions’ socioeconomic development and the role of regional markets in successful functioning of the Russian insurance market. The observed transformation of regional insurance, characterized by a decline in the number of insurers from the country's regions, necessitates regarding the factors and characteristics of regional insurers' activities. Therefore, the article analyzes the current insurance market using one regional case study, and identifies the reasons for its transformation by assessing the performance of a regional insurance company. Using the financial statements of a St. Petersburg insurance company, we have revealed the factors reducing the insurer's financial stability and solvency. A correlation analysis has allowed us to substantiate the negative impact of the growing share of compulsory motor third-party liability insurance premiums on the capital-to- liability ratio. We also have evaluated the insurer's key management decisions and developed recommendations for insurance market participants based on our findings.