A number of lawmakers, including the head of the Duma Committee on financial market Anatoly Aksakov, introduced a bill on reorganization of insurers. Thus, the deputies are trying to legally adopt approaches to the rehabilitation or bankruptcy of companies.
It all started with the fact that in July, Vladimir Putin instructed the Cabinet and the Bank of Russia until November to consider the mechanism for financial recovery of insurance companies by analogy with the resolution mechanism existing in the banking sector. While there is no such mechanism, no tools which could help the company to stay afloat, although circumstantial evidence may already be clear that she is experiencing financial difficulties. For example, now in a rather precarious financial position is Rosgosstrakh, and meanwhile the company is still a big market share in the CTP, and its bankruptcy would be a painful blow to the whole auto insurance market.
As introduced in the state Duma of the document, the Bank of Russia may start the process of reorganization of insurance companies, if there are signs of its unstable financial condition which may jeopardize the interests of its policyholders, but also a threat to stability in the insurance sector.
For recovery, of course, will require money for this, it is proposed to create a Fund for the consolidation of the insurance sector, it will be the money of the Bank of Russia, allocated in a separate article. These funds will be able to use a management company, appointed in order to bring the insurer from a state of bankruptcy.
The Central Bank if passed that law, would have the authority to limit transactions in distress the insurance company to the moment, while its capital is not restored. For this purpose, the Central Bank will be able to acquire up to a 75% stake in the reorganized company.
Rehabilitation will be considered complete once the insurance organization will be capitalized and sold to a new owner. Only after that, the Bank of Russia will be able to sell shares of the insurer, including at a reduced price.
- As for the more narrow the insurance sector — market insurance, then the last time he strewed so many different initiatives that RSA was asked to give insurers a respite to understand at least the already existing innovations. This so bluntly stated by the President of the Union of insurers Igor Jurgens.
- Recently, the Ministry of Finance proposed to create a unified automated information system where data will be accumulated under the contracts “avtograzhdanki” and the hull.
Photo: Donat Sorokin/TASS