The President PUTIN signed the law on rehabilitation of Russian insurers

25 April 2018 —
On April 23, 2018 the President, Vladimir PUTIN signed the law on rehabilitation of insurance companies which puts into effect insurers' rehabilitation procedure from the resources of the Bank of Russia, similar to the rehabilitation of banks.

The law was adopted by the State Duma at the third reading (final) on April 12 and it was approved by the Federation Council on April 18.

According to the Kremlin aide, rehabilitation of insurers will be performed by the Bank of Russia in order to prevent threats to stability of the financial (insurance) market and negative socio-environmental influences when revealing of insolvency signs of an insurance company by the Bank of Russia.

The law updates the reasons and the application procedure by the Bank of Russia of supervisory response measures in respect of insurance entities including those related to major violations of financial stability and solvency of insurers if the violations create hazards to rights and legal interests of policy holders, insured persons, beneficiaries or hazards to financial stability of the financial (insurance) market; as well as clarifies the rehabilitation procedure and types of financial support, provided by the Bank of Russia when exercising the mentioned measures.