The Russian insurance market has become attractive to foreign investors again, said Lyuba Tarnopolsky, principal banker at EBRD.

Speaking at a seminar organized by the All-Russia Insurance Association and the European Bank for Reconstruction and Development, she pointed out the growing demand for insurance services and profitability of insurance operations, as well as foreign investors’ renewed interest in the Russian insurance sector.

This is indirectly confirmed by the recent deal of the Boston-based insurer Liberty Mutual Insurance Group to acquire Russian KIT Finance Insurance, Tarnopolsky noted.

The banker believes that unsatisfactory corporate governance practices, non-transparent ownership structure, and the lack of qualified personnel are the main problems of the Russian insurance market. Foreign investors see the high level of fraud and government bureaucracy as their biggest obstacles, she said.