The draft laws aim to establish a modern and flexible legal framework that ensures stability of the insurance sector, fosters competition, drives digitalization of insurance services, and enhances consumer protection.
A key focus of the draft laws is the creation of a unified model for compulsory insurance featuring flexible market-based terms for insurance coverage. A single list of compulsory insurance classes—encompassing the current eight compulsory classes and ten classes of mandated insurance—will be established, governed by uniform regulatory principles. While the fundamental rules and guarantees of insurance coverage will be defined at the legislative level, more flexible parameters—such as those linked to economic conditions and changing risk profiles—will be regulated through subordinate legal acts and specific insurance contract terms.
The list of compulsory insurance classes will be expanded to include mandatory coverage for housing against earthquakes, floods, and natural forest fires.
Plans are in place to foster growth of voluntary insurance by introducing new types of pension annuities: investment-linked (unit-linked) and hybrid annuities, which combine guaranteed payments with the potential for investment income.
The proposal also includes liberalization of licensing procedures for branches of foreign insurers by simplifying requirements regarding total assets and operational experience in re/insurance.
Insurance market infrastructure will be enhanced through creation of new entities. Provisions are made for developing the insurance payment guarantee system and granting the Insurance Payments Guarantee Fund additional powers to manage settlement of obligations for insurers undergoing liquidation.
Insurance services will be digitized by establishing electronic contracts as the standard format for mass-market voluntary insurance products, uniquely identifying compulsory insurance contracts within the Unified Insurance Database and streamlining the authorization process for insurance marketplaces while setting baseline requirements for their operations.
Plans are also in place to expand sales channels by clearly delineating the roles of insurance agents and brokers, regulating intermediary activities to the extent concerning receipt of insurance payments, and enhancing the transparency of their interactions with clients.
It is noted that implementing these initiatives will enable the insurance sector to adapt to changing economic conditions, improve the effectiveness of state regulation, and foster an environment conducive to sustainable long-term growth.
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