Fitch Ratings has produced a report stating that it expects the Russian insurance sector to grow strongly. This is due to renewed retail business development, regional diversification and new compulsory lines.

Further regulatory tightening is also expected to help reduce the number of players and improve the financial strength of the insurance market as a whole.

Anastasia Voronkova of Fitch's Insurance team, said: “Consolidation among large players and local market knowledge are likely to support the medium-term domination of domestic companies in non-life business. However, we expect more foreign entrants to become influential, both by establishing start-ups and by buying shares in existing companies - thus providing additional capital for the market.”