Life insurance to be protected by guarantee system
The guarantee system in the life insurance segment is to be launched on 1 January 2027, as stipulated in the relevant law adopted by the State Duma. The protection mechanism will be similar to the existing systems insuring deposits with banks and savings in non-governmental pension funds.
If an insurer’s licence is revoked, the system guarantees that its obligations under life insurance contracts will be fulfilled within the limits established by the law: up to ₽10 million in case of an insured person’s death and up to ₽2.8 million in case of other insured events, e.g. an injury or illness, and upon policy expiry. This guaranteed limit also applies to clients’ premiums paid during the policy term. The refunds will be calculated taking into account the remaining insurance period and previously paid benefits.
According to the law, the State Corporation Deposit Insurance Agency will be the operator of the guarantee system.
The system will cover all life insurance contracts, even those executed before 1 January 2027, currently numbering about 16 million. This will promote clients’ confidence in making long-term savings through insurance and boost long-term investment in the economy.