New opportunity for foreign insurance companies
Foreign insurance companies who have open branches in Russia will be able to become members of the All-Russian Insurers Association. This aspect is enshrined in the new edition of the Charter of the All-Russian Insurers Association, which was adopted on February 1 at the extraordinary meeting. This was stated by the President of the All-Russian Insurers Association Igor Yurgence.
What is due to such a change in the rules
Foreign insurers has the opportunity to enter the All-Russian Insurers Association, if they provide insurance services in Russia through the branches open on the territory of the country.
The President of the All-Russian Insurers Association Igor Yurgens noted that the changes in the Charter of the All-Russian Insurers Association, in connection with which it became possible, occurred in accordance with the changes in the Russian Law “On the organization of insurance affairs in the Russian Federation”. According to this, foreign insurance companies can carry out their activities in Russia. Changes entered into force on August 22, 2021. The press release on the All-Russian Insurers Association site note that similar edits are currently introduced into internal standards and other documents of the organization.
According to the law, the possibility of implementing a foreign insurance company in the territory of the Russian Federation is due to its compliance with certain requirements. Among them experience in insurance activities and financial stability of the Insurance company. To open a branch in Russia, a foreign insurance organization will need to make a guarantee deposit to a special bank account. These funds are necessary for the fulfillment of obligations under the insurance contracts in the country if the company responds the license. It is noted that the licensing and issues of accreditation of foreign companies will be engaged in the Central Bank of the Russian Federation.
Also for foreign insurers, some exceptions will act. First of all, they will not be able to provide some services:
- compulsory insurance (except third party liability insurance);
- insurance associated with the procurement of goods, works and services for state and municipal needs;
- Insurance of property interests of state and municipal organizations;
- insurance of objects requiring a license to carry out work related to access to National Security Information;
Other insurance at the expense of funds that allocate from the budget to the executive authorities.
According to the 1Prime Edition, based on the results of the All-Russian Insurance Association meeting, Igor Yurgens told reporters that some foreign insurance organizations that were previously present on the Russian market showed a great interest in the auto insurance market. At the moment, many of them are considering returning to Russia.
The new version of the Charter of the All-Russian Insurance Association was approved by the General Meeting of Members of the Union of Insurers, now it will be sent to register in the Ministry of Justice of the Russian Federation. The press release also notes that during the All-Russian Insurance Association meeting, there were changes in the composition of the Presidium of the Union. The Ministry of Economic Development of the Russian Federation replaced Vadim Sevryukov to another Сhairman of this department – Svetlana Matveyeva.
Comments and opinion of the editorial
Changes will allow foreign insurance companies to expand its presence in the Russian market. If you believe the words of Igor Yurgens, perhaps some of them will return to the Russian playground. We will follow the development of events and, of course, we will inform you about everything interesting to you. Stay with us.
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Neo Volunteer Sergey N.