Russian Ministry of Finance is developing a three-tier system for foreign insurers in Russia

The Ministry of Finance expects within next 3 years to start using a three-tier system of determining the powers and possibilities of divisions of foreign insurance companies in Russia, according to the Deputy Finance Minister Alexei MOISEYEV.

According to him the Ministry is working on a project of liberalizing the operations of foreign insurance companies in Russian territory. The experience of regulating credit rating agencies may be used for defining the powers of divisions of foreign insurers. This would imply different regulation for accredited agencies, branches of foreign agencies and their representatives. Their competences differ from the viewpoint of rights to different types of operations, - said the Deputy Minister.

Those opposed to giving broad powers to branches of foreign insurance companies have their own arguments. They believe that the main problem is impossibility of application of the Code of Administrative Offenses and complexity of influence on their operations in the framework of Russian law. As MOISEYEV pointed out, there is also a range of other supervisory and control issues.

It is assumed that branches of foreign insurance companies will not be allowed to engage in mandatory, socially significant types of insurance but they will be allowed to offer voluntary insurance. At that, according to the Deputy Minister, the Ministry will try to guarantee the conformity of the provisions to requirements put forward to Russia by WTO.

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