Subject The article discusses how insurance companies deal with pension insurance, and evaluates key insurance options and respective outcomes, opportunities for further business development. Objectives Identifying the current issues obstructing the development of the pension system and pension insurance in particular, the study provides the rationale for increasing the involvement of insurance companies in the pension system of Russia and analyzes respective opportunities. Methods The study employs analytical and statistical methods to analyze key indicators and performance of financial institutions in pension insurance. Results We review the current state of compulsory pension insurance as a key part of the Russian pension system, determine key aspects of compulsory pension insurance and negative trends, such as the budgetary dependence of the Pension Fund of the Russian Federation on subsidies, drop in the wage replacement rate, stagnating market of non-governmental pension funds. The article also evaluates the performance of insurance companies offering pension insurance plans and provides the rationale for expanding their involvement into the pension system. Conclusions and Relevance Compulsory pension insurance undergoes continuous reforms, with the primary goal of ensuring decent pensions for people being still not attained. The cumulative portion of pension benefits should be formed not only through non-governmental pension insurance mechanisms, but also involve voluntary schemes. Insurance companies have an extensive experience in life insurance, competitive pension insurance plans for individuals and companies. However, pension insurance accounts for less than one percent of insurance premiums. Operating without the State aid, insurers will not be able to tap their investment potential. They should be engaged in the expansion of pension insurance proposition as part of non-governmental pension mechanisms. Insurers should be allowed to accumulate savings through cumulative pension plans and join compulsory pension insurance plans using their investment capabilities.
Keywords: pension system, pension insurance, insurance company
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