RUSSIA: requirements for the minimal charter capital of insurers increased from January 1

12 January 2022 — Marina MAGNAVAL
From January 1, 2022, requirements for the minimal charter capital of non-life insurers increased from RUB 180 million to RUB 240 million. For life insurers, the minimal amount increased from RUB 310 million to RUB 380 million, for reinsurers - from RUB 520 million to RUB 560 million, ASN reports with reference to the Finmarket portal.

Amendments with new requirements for charter capital of insurers in the law on organization of insurance business entered into force in 2018 and envisaged three phases of increasing the minimal charter capital of insurers. The first phase took place on January 1, 2020, the next two were postponed for a year due to the difficult economic situation in the financial market and insurance industry caused by the pandemic.

The third increase of the minimal charter capital will begin on January 1, 2023 - according to the law, non-life companies will need to have minimal charter capital of RUB 300 million, life insurers - RUB 450 million, reinsurers - RUB 600 million.

According to the regulator, an increase in capitalization will help to improve financial stability and solvency of insurance market participants, while significant transition period will allow insurance companies to carry out additional capitalization, considering their own plans for business development.

* 1 EUR = 84.0695 RUB (01.01.2022)

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