Changes to insurance law are being considered by the State Duma
to improve the financial stability of insurers and bring their
regulation and financial reporting into line with international
practice and international financial reporting standards.
If implemented in its current form, the draft law would greatly
improve regulation of the insurance market; but it remains to be
seen how the draft will evolve as it progresses through the
legislature. It may be adopted later this year and come into
force by the end of 2010 or early 2011.
The current draft:
would allow insurers to include subordinated loans when
calculating solvency margins, facilitating an immediate increase in
provides for monitoring of the financial condition of insurers
on the basis of financial indicators to be approved by the
clarifies the procedure for transferring insurance portfolios,
including requirements for a portfolio transfer agreement with
further details to be provided in special regulations published by
suggests that a portfolio transfer does not require explicit
consent from the policyholder and/or the beneficiary, merely that
the insurer must send a written request for consent to at least one
of the policyholder or beneficiary
specifies that the request must be sent by registered mail
asking for a response within 10 days, as well as being published on
the internet and in three newspapers. The portfolio may be
transferred if no response is received within 45 days of the date
the request was sent to the policyholder or the beneficiary
contains special rules for the transfer of a portfolio which
consists of compulsory insurance policies, or where the licence has
been revoked, or where the insurer is insolvent
uses such terms as "own capital" (instead of
"own assets"), "subordinated loans",
"internal control" and "internal audit" to
bring it into line with international financial reporting
defines the list of persons who may carry out internal controls
for an insurer, and outlines their authority and
outlines rules for organising and implementing internal audits,
which are to be approved by the insurer and submitted to the
requires an insurer's internal auditor (head of internal
audit) to have a university degree in law, economics or finance
recognised in Russia and more than 2 years' experience in
Russian insurance, financial or audit companies
Law: draft law "On amendments to the Law "On
the organisation of insurance business in the Russian
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