Insurance market regulation: risk-oriented approach
The Bank of Russia has developed a Concept for the introduction of a risk-oriented approach to insurance market regulation in the Russian Federation. The document is aimed at improving approaches to the regulation and sustainable development of a competitive insurance market in Russia, one of the mega-regulator’s top priorities.
The Concept sets main goals and priority activities for the insurance sector’s transition to the risk-oriented approach, and outlines prospective lines for the further development of this approach.
The document was elaborated using the best international practices and principles applied by insurance market regulators in Germany, Poland, Switzerland, Mexico, China and South Africa, as well as Directive No. 2009/138/ЕС of the European Parliament and the European Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).
‘The increased competitiveness and investment prospects of the insurance sector largely depend on the effective regulatory environment and prudential supervision. On the one hand, they should encourage further development of the insurance sector while, on the other hand, ensure advanced detection and response to the risks encountered by both individual insurance agents and the insurance market as a whole,’ said Vladimir Chistyukhin, Deputy Governor of the Bank of Russia. ‘In solving these issues, the Bank of Russia prioritises the introduction of a risk-oriented approach to regulation of the Russian insurance sector.’
The Concept is addressed to the insurance community and other financial market participants as well as others who may be interested in the subject. The document is aimed at harmonising Russian insurance laws with internationally recognised principles and rules concerning insurance business regulation.
1 Guidelines for the Development of the Russian Financial Market in 2016 — 2018