Recent amendments to the rules for investing insurance reserves have been made in the Republic of Belarus. The corresponding decree of the Council of Ministers d/d June 23, 2020 was published on the National legal internet portal, BELTA news agency reported.

The Decree keeps the standard, according to which insurance organizations are required to have at least 10% of their insurance reserves on accounts of Belarusian banks. At the same time, insurers need to invest at least 35% of their reserves in government securities or securities of the Development Bank and place them in deposits of state banks. This standard previously amounted to at least 40% for life insurance and 35% for non-life.

Also, when investing, insurance organizations are now obligated to observe certain ratios - no more than 15% of insurance reserves in securities of the National Bank, no more than 30% in securities of banks, except for shares; no more than 15% in securities of local executive and administrative bodies, no more than 25% in securities of legal entities of Belarus (not banks) except for shares and bills, no more than 10% in real estate, except for housing property, and no more than 5% in precious metals.

The mentioned ratios were previously determined based on insurance types. In addition, maximum total value of securities of one bank, one local executive and administrative body, one local entity, except for the Development Bank, should not exceed 10% of the amount of insurance reserves.

The decree comes into force 3 months after its official publication, BELTA mentions.