Prospects for Business Interruption Insurance in the Russian Federation

<p>The paper analyzes the current environment and development prospects of business interruption insurance market in the Russian Federation. This type of insurance is widespread in the United States and Western Europe. It is no wonder that entrepreneurs care about the continuity of their business, regardless of the natural disasters or the termination of deliveries. Experts estimate about 70% of the enterprises&rsquo; losses in Europe and the United States accounted for by losses due to the business interruption. In Russia, however, this type of insurance is not spread, despite the rather large amount of losses associated with interruptions in production. The topic of the presented work is undoubtedly relevant. The author aims to identify the reasons for the low demand for business interruption insurance and to evaluate the prospects of this type of insurance in the Russian Federation.</p><p>In this paper, the author analyzes the theoretical basis, detailed terms and the history of formation of this type of insurance. The author also provides an overview of the mainly foreign literature on the topic of the research, due to lack of the domestic sources and, consequently, low scientific elaboration of the theme in the Russian Federation. In addition, a detailed description and comparison of the two existing systems (the US and UK systems) of business interruption insurance is provided. In the final part of the paper the author determines the prospects of business interruption insurance by means of the SWOT-analysis, in which the information is presented in a structured way and is divided into four sections: strengths, weaknesses, opportunities and threats. This study may be of interest to insurers interested in promoting business interruption insurance in the Russian Federation.</p>