All-Russia’s Union of Insurers President Alexander Koval
Photo: Dmitry Kostyukov
| Other Photos |
 |
|
 |
Opening Borders for Insurance Affiliates
The date for Russia’s entry into the WTO hasn’t been determined yet, but the insurance lobby is ready to oppose the arrival of affiliates of foreign insurers. All-Russia’s Union of Insurers President Alexander Koval has submitted to the State Duma a bill requiring a bank guarantee and Russia’s license from affiliates of non-residents. In essence, those demands are similar to the ones that are to be met for launching an affiliate of the U.S. insurer in the European Union.
Unable to withstand the pressure of the U.S. opponents, Russia yielded at the WTO negotiations and agreed to open the market for foreign insurers. Non-resident players will be able to launch their affiliates once Russia becomes the WTO member. The only restrictions are the eight-year ban on life insurance and the five-year ban on mandatory insurance.
Although no date for Russia’s admission to the WTO has been set, the local insurance lobby is ready to fight back the potential attack. All-Russia’s Union of Insurers President Alexander Koval submitted past Thursday to the State Duma a bill amending the Act on Arranging Insurance in the RF and the Act on Foreign Investments in the RF. The amendments “are aimed at protecting the interest of Russia’s insurers - the residents, entrepreneurs and entities - as well as the interest of the state and at protecting the national insurance market.”
Under the bill, any Russia’s affiliate of non-resident insurer should have the organization similar to the organization of Russia’s open joint-stock company, be incorporated outside the offshore area, have positive solvency indicators in the past five years.
Another requirement is the bank guarantee provided by the first-class bank of the country of parent company’s incorporation and covering the term of insurer’s business in Russia. And last but not least, the insurer will have to get Russia’s license for the business.
www.kommersant.com
All the Article in Russian as of Mar. 11, 2008
|
|
|
