Trends and problems of development of life insurance investments in the russian market

Investment life insurance represents in the modern economy of developed countries one of those key products through which the investment and savings potential of the public finance is disclosed. Russian insurers began actively offering life insurance investment programs after the 2008 crisis with the aim of attracting wealthy citizens for a long time. Investment life insurance currently only begins its development in Russia. At the same time, in Russia there is a significant potential for the development of this segment. Bank deposits are at the heart of that potential. It is currently not profitable for commercial banks in Russia to keep a large number of deposits on their balances. Stagnation in the economy dramatically reduced the range of quality borrowers who are able to service loans predictably and provide the banks with the required profitability. As a result of 2016, the share of life insurance investment contracts in the total portfolio of insurance companies was 77%. The paper considers the main advantages and disadvantages of investment life insurance in comparison with bank deposits. The authors identify factors driving the demand for investment life insurance, which in the modern Russian economy are characterized by instability and a temporary nature of the action.