insurance companies in the Russian insurance market. The document was published on Friday, July 2, on the official portal of legal information, TASS reports.
The law aims to fulfill Russia's obligations to admit branches of foreign insurance companies from the World Trade Organization (WTO) member states to the domestic market, ensuring a balance between protecting the national insurance market and creating fair competition between foreign and Russian insurers. At the same time, foreign insurers are considered as independent subjects of the insurance business on a par with Russian companies.
Licensing of the foreign insurers' activities is limited to voluntary types of insurance, reinsurance, as well as compulsory civil liability insurance of vehicle owners.
Foreign insurers have the right to apply rates that are calculated in accordance with the requirements of the national legislation of the states where they are registered. They are not subject to the requirement to submit a provision on the formation of insurance reserves to the Russian insurance supervisory authority. At the same time, foreign insurers are obliged to reflect all operations on the territory of the Russian Federation through the branches created by them under insurance and reinsurance contracts in the databases of information systems. Data from information systems of insurers will be stored in databases for at least five years.