Proposed Changes To Insurance Law

Changes to insurance law are being considered by the State Duma to improve the financial stability of insurers and bring their regulation and financial reporting into line with international practice and international financial reporting standards.

If implemented in its current form, the draft law would greatly improve regulation of the insurance market; but it remains to be seen how the draft will evolve as it progresses through the legislature.  It may be adopted later this year and come into force by the end of 2010 or early 2011.

The current draft:

• would allow insurers to include subordinated loans when calculating solvency margins, facilitating an immediate increase in their capitalisation