20.11.2025 / Hull Insurance market: current trends and future challenges

The new car market has declined significantly in recent years. We are witnessing rising prices, decrease in the solvency of population and high auto loan rates. All this has become a challenge for car insurance market. The marketing agency NAPI discussed issues on the demand for hull insurance, the average time for settling losses, and future prospects for the car insurance market with Andrey Kovalev, Deputy General Director of the insurance company Soglasie LLC.

— According to the Central Bank of the Russian Federation, in the first half of 2025, hull insurance premiums increased by 1.6% on the similar period last year and reached 149.6 billion rubles. Why has the hull insurance demand increased right now and what was the situation like before?

— We have observed situations where, in the absence of insurance coverage, it was often difficult for a client to settle a loss on his own, because he either had to contact a dealer or order spare parts by himself. At the same time, the specifics of the Russian market continue to be such that customers consider insurance to be an imposed service. And this is the fundamental problem for our insurance market. Increasing confidence in the insurance institution, and, in particular, car insurance, is the work that the entire market has to do.

However, at the same time, taking into account the strong rise in the cost of cars, spare parts and repair–related issues, more and more customers began to realize the benefits of insurance coverage. This is one of the reasons for insignificant, but still growing penetration of hull insurance among drivers.

— Let's say that the client has made a hull insurance policy after all. Will he have to part with the car for a long time if an insured event occurs? Are there any difficulties in the supply of spare parts?

— Indeed, there are still certain problems in the market in terms of settling losses, because there are certain logistical difficulties in the supply of spare parts, depending on the brand. There is a situation where supply of spare parts from Europe and Asia for brands that left the Russian market is complicated and unsecured. For Chinese brands, we have such a problem as insufficient volume of the current range in Russian warehouses, so the settlement period may be delayed. Conditionally, the settlement period may now be about three months. Unique situations occur when periods can be delayed up to six months or more.

— Is the situation with the supply of spare parts for Russian brands better?

— It is easier and faster to supply spare parts for Russian brands to a certain extent, but there are also certain difficulties – the whole range and all the spare parts are not always available. The settlement period is 2-2.5 months on average.

— What is about electric and hybrid car insurance?

— Now all insurance companies execute insurance contracts for so-called "electric" and hybrid cars and offer conditions no worse than those for cars equipped with internal combustion engines. The client receives insurance coverage, including for risks that the electric car has – the battery coverage.

— Will the customer wait for spare parts?

— He will wait, but, certainly, it will take not three months, but a little longer.

— Is the insurance company considering setting up its own spare parts warehouse?

— Fairly speaking, we have asked this question more than once. We are currently cooperating with dealers for purchasing spare parts. In some rare cases, we can use alternative suppliers. For example, when a dealer has a problem with a spare part. We strive to provide the customer with good service, bring spare parts and make repair as quickly as possible.

— How noticeable is the increase of insurance box spare parts' prices from year to year?

— There is certainly a 15-20% increase in prices from year to year. And it depends on specific brands.

— What trends of the insurance market are expected in 2026 in your opinion?

— There is definitely a need to raise rates, because the inflation rises. Insurance companies are not keeping up with the growth of rates for the cost of spare parts. We have been observing this trend for the last six months of 2025 and will continue to observe it in 2026.

In terms of new products, I don't think there will be any new offers. Minute insurance products are currently being developed, but we will only be able to see how much demand this will really be after a certain amount of time has passed. So far, there is no feeling that these products will be able to take a large share in the insurer's sales.

As for the current problems, it is important to note that the market has significantly collapsed: new car sales have fallen by 35-40% year-on-year, registrations of new leasing contracts have decreased. And this could not but have an impact on the hull insurance market. We depend on the economic situation, recycling tax, the key rate and other market factors. So far, there are no prerequisites for strong market growth. There must be some major macroeconomic developments that will change demand and improve the solvency of population, so that people think about insurance.