"We see that the new regulation from July 1 comes into force for 70% of companies. 62 companies fully comply with the corporate procedures, 3 more companies have minor difficulties ... We will have a dialogue with only three companies. The market has done a tremendous job and improved its stability", said the director of the insurance market department of the Bank of Russia.
Philip GABUNIA added that the market will have another 6 stages to introduce more stringent solvency requirements. "This is especially important not only in terms of shocks and turbulence, but it also "closes the door" for manipulation with financial statements. This will increase overall market confidence", he stressed.
Earlier, the Bank of Russia provided a six-month deferral for application of regulatory measures for violation of new requirements for small insurers (with annual GWP less than RUB 2 billion at the end of 2020). This deferral expires on January 1, 2022. All other insurance companies are required to comply with the new requirements from July 1.
The new Regulation considers all assets of insurers when determining the amount of equity. Total equity of insurance companies is to be calculated, according to the document, as the difference between assets that meet the requirements of the Central Bank of the Russian Federation and the insurers' liabilities.