6 Jun 2018 17:01

Central Bank to synchronize approach to insurance development in 2019-2021 with industry association

ST. PETERSBURG. June 6 (Interfax) - The Central Bank of Russia has formulated its main strategic approaches to development of the financial market in 2019-2021 and plans to publish this document in the near future, Central Bank Deputy Governor Vladimir Chistyukhin said on Wednesday at the All-Russia Insurance Association's Russian Insurance Summit.

"Given that the insurance community is developing its own vision of the insurance market development strategy in the near term, we are ready to study ARIA's proposals on this topic and synchronize approaches to the extent possible," Chistyukhin said.

"This will provide a synergy of resources for fulfilling the strategy, making it possible to define priorities and directions for progress," he said, adding that among the legislative priorities in the next few years remains a bill on insurance for accidental death from emergency situations, mandatory medical insurance reform, and improvement of agricultural insurance products, including state-supported coverage.

In addition, the Central Bank is counting on further development of the bill on the "price of admission" to the sector, which stipulates a phased increase in the minimum capital requirement for insurers.

The same bill would have empowered the Central Bank to evaluate the business plan of companies entering the market, but that provision was subsequently dropped. Instead, companies entering the market will discuss business plans with the regulator on a consultative basis. This interaction might be set down in law at some future date, Chistyukhin said.

The main provisions of ARIA's near-term insurance market development strategy were presented by the head of the working group that drafted the strategy, Yelena Aleksandrova.

The basic principles of the strategy remain expanding the area of activity of insurers, improving relations with consumers and combating abuses on the insurance market. Among priorities are the development of online insurance, introduction of a risk component in mandatory medical insurance, improvement of the procedures for exchanging information with state bodies and development of a dialog with the regulator.

In the legislative area, ARIA's priorities coincide with the Central Bank's in terms of the bill on insurance of accidental death from emergency situations, development of agricultural insurance with state-supported coverage and phased reform of mandatory medical insurance, with the gradual introduction of classic insurance principles to this mandatory insurance product, Aleksandrova said.