Commission-based Insurance Plans
GTLK Launches Own Insurance Broker to Secure Critical Coverage Amid Geopolitical Risks
GTLK, a state-owned leasing company, has announced its plans to launch an insurance broker, marking a significant move for the company. This decision comes as leasing companies seek to gain better control over insurance processes, reduce dependency on external insurers, and mitigate risks associated with sanctions and payment challenges in complex markets such as Russia.
The new insurance broker will be a separate legal entity with a broker's license, allowing it to take either a commission from the insurer or a fee from the client. This move will provide GTLK with more direct control over insurance policies and claims management, reducing delays and shortfalls from external reinsurers affected by sanctions.
One of the potential benefits of this internalization is the improved ability to provide security for claims and assist with payments in restricted financial environments, overcoming banking and sanction-related obstacles. Another advantage is the potential cost savings by avoiding high premiums or insurance gaps caused by limited market access to international insurers.
However, launching an insurance broker comes with its challenges. Navigating complex international sanctions regimes that restrict transactions with Russian state-owned companies affects insurance and reinsurance availability and payments. Setting up a compliant brokerage business also requires handling operational demands, including regulatory approvals and risk management. Managing relationships with international partners, banks, and clients where geopolitical tensions complicate financial flows and legal exposure further complicates the process.
Despite these challenges, GTLK's move to launch an insurance broker could strengthen its position in disputes with lessees. In certain cases, the formal separation of the roles of the lessor and the insurance intermediary may reduce regulatory risks from the FAS regarding the suspicion of service imposition.
In 2024, GTLK held the leading position in leasing aviation, water, rail, urban, and passenger transport, according to "Expert RA" data. The company's leasing portfolio for the same year was 2.7 trillion rubles. As of the first six months of 2025, GTLK's assets, according to Russian Accounting Standards, were 1.23 trillion rubles.
This is the first time a leasing company not part of a banking or insurance group is entering the brokerage market. Other leasing companies receive commission income from selling insurance through insurers and cooperate with many insurance companies in the market. However, GTLK's creation of a separate legal entity with a broker's license will help avoid regulatory constraints and procurement legislation restrictions.
While other leasing companies are not rushing to open insurance brokers, GTLK, as a state leasing company with the main tasks of developing the transport industry and supporting domestic machine-building, finds the separation of non-core insurance intermediation activities to be a logical move. The volume of the insurance brokerage market in 2024 grew by 11.7%, to 21.4 billion rubles, indicating a growing market for such services.
In conclusion, GTLK's decision to launch its own insurance broker is a strategic move aimed at securing the insurance coverage critical for its leasing business amid geopolitical risks and sanctions. The company faces substantial regulatory and operational hurdles in doing so, but the potential benefits, including more direct control over insurance policies and claims management, improved ability to provide security for claims, and potential cost savings, make it a worthwhile endeavour.
[1] Source: Various industry reports and analysts' opinions.
