CBR still planning transition to proportional regulation on insurance market
ST. PETERSBURG. July 14 (Interfax) - The Central Bank of Russia (CBR) has not abandoned plans to introduce the principle of proportional regulation on the insurance market, Central Bank chief Elvira Nabiullina said at a press conference at a forum in St. Petersburg on Thursday.
"We are holding to this principle of regulation in general on the financial market, but we will introduce it gradually," she said.
The CBR is now discussing "how this principle could be practically introduced on the insurance market," Nabiullina said. Proportional regulation "provides additional possibilities for fair competition and adequate restriction of risks," she said.
She said the transition to proportional regulation on the insurance market will be carried out taking into account the introduction of the principles of Solvency II, the European directive concerning oversight over the solvency of insurance companies.
Nabiullina also said that representatives of the insurance community and senior CBR officials have discussed the strategic idea of creating global risk maps and establishing a global risk office.
"This initiative seems very interesting to us," Nabiullina said, adding that it will be possible to talk about the project in greater detail as it is implemented.
