Tax Incentives of Demand for Insurance Market Services in Russia

Author Name(s): 1 M. E. Orlova, F. F. Adigamova, 2 Larisa S. Kirillova, 3 Alisher R. Khodzhiev
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In each country insurance is one of the main tools of risk management and strategic management of the economy. There are studies that show that the Russian insurance market has features related to the specificity of the population, special, in the field of life insurance, accident insurance and property insurance (Nishnianidze, O.,  Gaidukova, I..).

The development of the insurance market depends on the initiative of two participants: the seller of insurance services and the buyer of insurance services. The buyer in the insurance market should have several components: free financial resources to purchase insurance products, confidence in full compensation for damage.  In the opinion of many Russian specialists in the field of insurance, the main problem of the insurance market in crisis times is a sharp decline in individual and organization’s demand from due to lack of financial resources, distrust of insurance companies, low insurance culture level. (Ulybyna L.K., Khitrova E.M.). In the condition of a competitive insurance market, there are different states of the seller and buyer in the insurance market: the same unstable state of the insurer and the insured entails their security, and vice versa, when the insurer feels a great instability of the market – the consumer can refuse insurance. (Anwar, S.,  Zheng, M.) .

According to D.S. Sokolov opinion, development of insurance is based on the availability of middle class, high standard of living, as well as on stimulating demand for insurance (Sokolov D.S.). And forms of the organization of an insurance covering influence quality of the population (Kaigorodova G.N., Mustafina A.A.). The demand for insurance services depends on the policy of insurance premiums also (Alyakina D.P., Khisamova G.F.) According to forecasts, in Russia the main types of insurance are social types: unemployment insurance, from accidents and illnesses, pension insurance, student insurance, citizens traveling abroad. In this regard, the most important is the tax incentive for spending – investment of legal entities and individuals in the services of the insurance market, as insurers and beneficiaries.


Analysis of the state of the Russian insurance market and review of tax preferences proposed by the Russian tax legislation for legal entities and individuals, as well as the procedure for their application with the aim of regulating the development of the insurance market and its withdrawal from stagnation allows us to recommend the following aspects of their development:

  • to expand the ability of taxpayers-insurers, especially organizations, to actively use liability insurance for both proprietary and professional liability, to allow insurance premiums for this type of insurance to be charged to expenses for purposes of calculating the profit tax;
  • introduce an additional social tax deduction for individuals for voluntary medical insurance in their favor in favor of spouses, children, parents;
  • Introduce an investment tax deduction for the costs of individuals for personal property insurance.


The work is performed according to the Russian Government Program of Competitive Growth of Kazan Federal University.


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