Additional six month granted to small companies and compulsory health insurers to implement new requirements for financial stability
The Bank of Russia postpones to 1 January 2022 the entry into force of the requirements for financial sustainability and solvency for insurance companies with 2020 premiums below 2 billion rubles (excluding insurers working with compulsory motor third-party liability insurance) or those providing compulsory health insurance.
The postponement of the effective period will affect 88 insurers. The corresponding ordinance of the Bank of Russia was sent to the Ministry of Justice for registration.
To facilitate the formation of capital, the ordinance also sets forth additional deductions to account for deferred tax liabilities and interrelated assets and liabilities.
Moreover, the Ministry of Justice is now registering another Bank of Russia ordinance, which stipulates the easing of the regulation of stabilisation reserve for several accounting groups. This will expand capital formation opportunities for insurance companies.