On rules for accumulating insurance reserves for insurance other than life insurance

On 14 February 2017, Bank of Russia Regulation No. 558-P, dated 16 November 2016, ‘On Rules for Accumulating Insurance Reserves for Insurance Other than Life Insurance’ becomes effective, replacing Order of the Ministry of Finance of the Russian Federation No. 51n, dated 11 June 2002, ‘On Approving Rules for Accumulating Insurance Reserves for Insurance Other than Life Insurance’.

Insurers, therefore, are to bring their provisions on accumulating insurance reserves for insurance other than life insurance into compliance with Bank of Russia Regulation No. 558-P, dated 16 November 2016, ‘On Rules for Accumulating Insurance Reserves for Insurance Other than Life Insurance’ (hereinafter, the Regulation) before 30 June 2017.

The methods for calculating insurance reserves for insurance other than life insurance, which are different from those stipulated by the Regulation but approved of by the Bank of Russia before 1 January 2017, should be applied by insurers without approval.

Insurers should submit their provisions on accumulating insurance reserves for insurance other than life insurance to the Bank of Russia as notifications pursuant to Bank of Russia Ordinance No. 3523-U, dated 30 December 2014, ‘On the Procedure and Terms for an Insurer to Submit to the Bank of Russia the Insurance Rules, Calculations of Insurance Tariffs and the Applied Methodology of Actuarial Calculations, Structure of Tariff Rates and Provisions on Insurance Reserve Accumulation as Approved for Different Types of Insurance’.

Should a need arise, insurers are entitled to reconcile with the Bank of Russia methods for calculating insurance reserves for insurance other than life insurance, which are different from those stipulated by the Regulation.

Should the Bank of Russia decide to approve of the methods for calculating insurance reserves for insurance other than life insurance, which are different from those stipulated by the Regulation, insurers are to amend their provisions on insurance reserve accumulation accordingly. Insurers are entitled to accumulate insurance reserves for insurance other than life insurance in compliance with other method from the date of its approval by the Bank of Russia and making the respective amendments to their provisions on accumulating insurance reserves.

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09.02.2017 00.00.00