Vera Balakireva, deputy head of Finance Ministry’s department for financial policy
Photo: Grigoriy Sobchenko
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Insurers to Be Brought To Collective Liability
Russia’s Finance Ministry has submitted to government the Strategy for the RF Insurance Development in 2008 through 2012, which spells out key changes in the state control over insurance market in the nearest years.
Russia’s Finance Ministry submitted to the government Friday the Strategy for the RF Insurance Development in 2008 through 2012, said Vera Balakireva, deputy head of Finance Ministry’s department for financial policy. Balakireva pointed out that the Strategy’s highlight is “protecting insured persons, improving the branch laws and supervision over the market players.”
The document also specifies the need for particular control over trans-border re-insurance as well as for tougher control over sustainability of companies and for creation of collective warranty funds both in voluntary and mandatory types of insurance.
According to the analysts, the new strategy is focused on the market supervision rather than on its development. The idea of setting up collective warranty funds triggers particular concern, as it is widely expected to drive up costs of insurers.
In general, insurers view the new strategy with great apprehension. The previous document that was elaborated for 2002 through 2007 trimmed their number from 1,397 in 2003 to 918 in 2006. The aggregate stock capital of insurers grew from 27.3 billion rubles in 2001 to 155.4 billion rubles in 2006. The per capita costs soared from 2,085 rubles in 2002 to 4,216 rubles in 2006, while the amount of aggregate premium on the market stepped up 203.4 percent, from 300.4 billion rubles to 611 billion rubles. Regardless, the share of insurance premium in the GDP is yet below 3.2 percent.
www.kommersant.com
All the Article in Russian as of Nov. 19, 2007
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