XPRIMM: How do you evaluate year 2015 in terms of losses? Under what insurance types and insurance events were made the largest payments?
Andrey T. UNTON: In the first nine months of the current year, the total amount of insurance indemnity paid by BELARUS Re reached from BYR 22.3 billion (in 3Q2014) to BYR 54.4 billion. The share of the retrocessionaires reinsurance in the total amount of the insurance indemnity paid was 35.6%, to BYR 19.4 billion.The share of paid claims in total GWP increased from 8.03% in 3Q2014 till 14.7% in the nine months of current year and considered low. The combined ratio was 27.5% in 3Q2015.

In June 2015, under voluntary corporate property insurance business lineBELARUS Re paid its proportion in reinsurance contract in amount of USD 1.3 million for the property damage due to flooding of hydroelectric ZAGORSK PSPP-2 station. Under this contract RusHydro participated as insured and the reinsurance coverage were provided by several cedents.

XRPIMM: BELARUS Re has been extending its activity geographically. In which countries and new projects the company has participated and what are your plans in this direction for the next year?
Andrey T. UNTON: BELARUS Re is constantly searching for a new opportunities and partners; the geography of our company is very extensive.

For a long time, the Middle East was occupying important place in priorities of BELARUS Re. Among the Middle East partners of BELARUS Re, we would like to mention TRUST Re, being a participant in our Property, Engineering and Cargo Reinsurance Treaty Program. Conversely, Belarus Re is one of retrocessionaires for this company.

In addition, facultative business from such countries as UAE, Saudi Arabia, Bahrain, Azerbaijan and Turkey is recently increasing.

BELARUS Re cooperates with companies in South-Eastern Asia, participating in a number of property facultative reinsurance programs.

Next year, as in previous ones, BELARUS Re will focus on the international market. We plan further expansion of the geography of our company to find new promising projects.

XPRIMM: The Ministry of Finance of Belarus has revoked the licenses of a number of local insurance companies. How do you assess insurers' withdrawal from the market and how it will affect the future development of the market?
Andrey T. UNTON: The crisis phenomenon influencing the world's economy has been affecting the economic situation of the Republic of Belarus as well, in particular its insurance segment.

Current economic realities impose strict requirements for insurance companies, on one hand regarding the sales of insurance products, and on the other hand to ensure financial stability of the insurers and unconditionally fulfill its obligations to policyholders.

In this regard, it should be noted that a lot of insurers left the insurance business due to tough competition in the Belarusian insurance market, as well as increase of requirements in connection to financial stability of the insurance companies.

The Ministry of Finance of the Republic of Belarus, as a regulatory body of the insurance market, raised requirements for the minimum authorized capital for the insurance organizations from EUR 1 million to EUR 5 million (the equivalent in BYR).

For the operating insurance companies were provided gradual increase of authorized capital. Moreover, for the operating insurance companies was planned gradual increase of the minimum authorized capital till May 1st, 2017.

It is important to note that withdrawal of licenses of the insurance companies was made in strict compliance with legislation of the Republic of Belarus in order to ensure the interests of policyholders. It is necessary to maintain the confidence of policyholders to the insurance system, since this is the key factor for its development.

At the same time, all liabilities of the companies that left the market have been either transferred to the other insurers or the insurance contracts were anticipated cancelled (exceptions are the contracts under which recorded damages had place) and a part of insurance premiums was returned to the insured's on a pro-rata basis.

XPRIMM: It is planned to delegate insurance regulatory authority from the Ministry of Finance to the National Bank. How do you assess this process?
Andrey T. UNTON: Currently, the Presidential Draft Decree conferring the rights of the financial market mega-regulator to the National Bank of the Republic of Belarus is under consideration. Thus, the National Bank will become a mega-regulator, ensuring a state control over all segments of the financial market: the insurance sector, the securities market, investment funds, leasing and microfinance organizations, Forex market, etc.

But, some of the regulatory and supervisory functions will remain under Ministry of Finance.

In present, many countries transfer all regulatory functions of the financial market under a sole public authority. Our partners within the Customs Union in the Russian Federation and Kazakhstan in recent years have implemented the reforms of the banking system; as a result, their central banks became mega-regulatory bodies in the financial market.

Note: BELARUS Re's 100% state ownership is the first and only specialized Reinsurance Company in the Republic of Belarus. BELARUS Re, in accordance with the legislation of the Republic of Belarus, is the sole company that cooperates with foreign insurance and reinsurance organizations on reinsurance of risks insured on the territory of the Republic of Belarus. BELARUS Re is the only company ceding risks insured on the territory of the Republic of Belarus among foreign insurance and reinsurance companies or brokers. The organization cooperates with more than 70 companies out of 17 countries. Starting 2010 the process of rating BELARUS Re has been conducted by the international rating agency Standard & Poor's International Services. On November, 11, 2014 Fitch Ratings has assigned Belarus Re an Insurer Financial Strength (IFS) rating of 'B-'. The Outlook is Stable.

To read the company's report by types of insurance for 3Q2015 - click here.