BELARUS: the new law to become the fundamental document regulating insurance activities

1 August 2023 — Marina MAGNAVAL

Belarus plans to change the regulation in the field of insurance (currently, insurance activities are regulated by decrees of the President of the Republic of Belarus), which is designed to ensure consistency, complexity, and stability of insurance activities, BELTA reports. The draft law will soon be submitted to the House of Representatives.

Speaking about the prospects of the country's insurance market in the light of the upcoming draft law "On Insurance Activities", Lyudmila Nizhevich, Chairman of the Standing Committee on Budget and Finance of the House of Representatives, noted that the law would be a fundamental legislative act regulating only issues directly related to the procedure of carrying out insurance activities. "Regulation of relations on compulsory insurance will remain with the President of the Republic of Belarus", the deputy emphasized.

First, the law will ensure equal conditions for insurance organizations of various forms of ownership, differentiation of the minimum size of the charter capital depending on the lines of business of insurers. "A new form of insurance is being introduced - imputed insurance, a distinctive feature of which is legal requirement for insurance contracts as a prerequisite for implementation of a particular activity or receipt of certain benefits. At the same time, the conditions of insurance and insurance rates are determined by an insurer, in other words, there is an opportunity to choose the most acceptable and profitable", explained Lyudmila Nizhevich.

 

The list of objects of insurance is being expanded, requirements for corporate governance in insurance companies are being established. "Currently, the Republic of Belarus has not established requirements for the corporate governance system in insurance companies. The draft law regulates this issue, which will allow building a clearer system of relationships between a company’s management, board of directors, shareholders, other interested parties, and ensuring protection of interests of all participants and financial market regulators. Particular attention is paid to approaches of guaranteeing insurance payments by the state, creating conditions for further development of new types of life insurance", she added.

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