vol. XVII no. 3

				Page 1 Page 1 2 3 4 5 6 It is winter in Russia. As a pedestrian emerges from the tunnel, one of many running under Moscow's major thoroughfares, he notices a cluster of billboards that stand in brilliant contrast to the pitch black January sky. There are five. One advertises cosmetics, another electronics, still a third a cellular phone firm. Last but not least are two billboards that speak neither of product nor service. One shows a stick figure in full stride. The other contains just words lost on those unfamiliar with the Russian language. But even when translated, what they say (encouraging walking instead of driving and obedience to road traffic rules) is not nearly as significant as what they imply. Vassily Balog, adviser to the president of the Russian Association of Motor Insurers, explains it this way: "If you want to know just how important the insurance industry is becoming in Russia, all you need to do is look up there." Clearly, as you travel the streets of Moscow and look at which companies are advertising, you become aware that the insurance industry is a major force. Insurance-related signage, whether public service or product oriented, is seen frequently in Moscow, St. Petersburg and other major Russian markets. It speaks to the growth of this industry, in which today there are some 1,300 companies, compared to 15 years ago. when there were just two. To determine just how this happened and what it means to the people of Russia, State of Business spoke with representatives of two leading insurance providers, two organizations representing insurance companies and the head of the risk management and insurance chair at Moscow State University. BUILDING BLOCKS FOR THE NEW INDUSTRY Igor Kotlobovsky heads Moscow State's (MSU) RMI chair (a chair at MSU is comparable to a department at Georgia State). Kotlobovsky noted that the post-Soviet development of the insurance industry did not occur overnight, but that Moscow State was at the forefront of its gradual rise to prominence. Kotlobovsky was chosen as the second professor in Russia to learn about and teach others about insurance and risk management. A European Technical Assistance grant provided him the support of Western experts for a period of two years, then, after 1996 he was on his own to develop the curriculum, line up faculty and create what is now one of Russia's most-respected RMI programs. Today, not only is an RMI course mandatory for undergraduate students in the Management and Economics disciplines at Moscow State, but there is also a master's program and a doctorate in risk. "Our students graduate and go to work for banks, leasing and mortgage companies among others," said Kotlobovsky. "Part of the reason we are so successful is because our curriculum is analytical and research-based. As a result, our students can move into many fields." Another reason for that success is the assistance provided by the Robinson College. Kotlobovsky and three other faculty members of Moscow State visited Robinson in 2002 to study the curriculum offered by the college and gain insights into courses not available at the Russian institute, such as mathematical risk management. Top | Next Page

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