The Law “On the Organisation of Insurance Business in the Russian Federation” has been amended. The amendments increase the permitted quota of foreign ownership of Russian insurance companies from 25% to 50%.
The amendments also apply to the procedure for obtaining an insurance licence, in particular, for licences in relation to additional types of insurance, reinsurance and reciprocal insurance. The grounds for denial of an insurance licence have been supplemented with a provision that a licence may not be issued if there is a valid decision on restriction or suspension of the previously granted licence or on appointment of a temporary administration. Also, the applicant will be denied a licence if there is an unsatisfied requirement of the insurance supervision authority issued for non-reporting or non-compliance with requirements designed to ensure financial stability and solvency.
The changes are due to Russia's undertakings assumed in connection with its entry into the WTO, as previously reported.
[Federal Law No. 267-FZ “On Amending and Invalidating Certain Provisions of Russian Legislative Acts”, dated 25 December 2012]