According to Renaissance Insurance Group, mortgage insurance contracts in Russia rose by 40.2% in 2023 from the previous year, a change reflected in the company’s statement. A copy of the report is held by socialbites.ca.
The sharpest expansion in mortgage issuance occurred in December 2023, when volumes were 28.5% above the monthly average. Notable increases also took place earlier in August, at 19.7%, and in September, at 18.1%.
In 2023, roughly seven out of ten mortgage insurance contracts included protection for the borrower’s life and health against accidents, while about 58.9% covered the real estate itself. Only around 1.5% included title insurance to guard against the loss of title to real estate, among other risks. This divergence stems from the structure of mortgage insurance: when financing an apartment or a house under construction, real estate protection becomes active only after construction is completed, whereas life and health coverage for the borrower is in effect from the outset, as explained by the director of the retail insurance underwriting department at Rönesans Sigorta.
Geographic demand for mortgage insurance showed clear regional variation. Tyumen saw demand surge to 2.4 times the prior period, Krasnoyarsk rose by about 2.1 times, and Chelyabinsk by roughly 74%. In major centers, growth also remained strong, with Moscow up around 60% and Yekaterinburg about 40% higher than a year earlier.
When it comes to pricing, data indicate that the highest costs for mortgage insurance contracts were reported in Moscow at roughly 49%. Saint Petersburg followed with about 26%, and Kazan around 12%. The lowest average costs, on the other hand, appeared in Petrozavodsk, where premiums ran about 41% of the national average, with Saransk at 44%, Izhevsk at 62%, Kazan at 64%, and Tolyatti at 66% of the national benchmark.
Earlier official statements touched on policy discussions that could influence mortgage financing in Russia. A deputy minister of finance indicated there would be extensions to family mortgage programs within the federation. Separately, a political leader underscored the possibility of introducing a concessional mortgage for secondary housing, a move aimed at expanding housing accessibility and potentially altering the landscape of mortgage insurance demand in the coming years.
These developments collectively point to a year of meaningful movement in mortgage-related protections and pricing, driven by shifts in consumer demand, regional economic conditions, and evolving policy environments. Observers note that the interplay between borrower protection, real estate coverage, and title safeguards shapes the overall risk profile and cost structure of mortgage insurance, while also reflecting how banks and insurance providers respond to changing mortgage uptake in a large, geographically diverse economy.
Ultimately, the 2023 data illustrate a clear trend toward greater adoption of life and health protections within mortgage contracts, alongside persistent attention to the real estate elements of coverage. This combination helps lenders manage risk while offering borrowers broader security as they navigate the housing market and the financing options available to them in Russia.