Russian Federation Financial Sector Assessment Program : Insurance Sector Technical Note

World Bank ; International Monetary Fund

World Bank, Washington, DC

关键词: regulatory framework;    insurance sector;    market structure;    insurance premiums;    insurance risks;   

RP-ID  :  108088

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This technical note covers the insurancesector supervised by the CBR. The analysis was carried outas part of the 2016 Financial Sector Assessment Program(FSAP) of the Russian Federation, and was based on theregulatory framework, supervisory practices and otherconditions as they existed in March 2016. Relevantinformation including laws, by-laws and regulations as wellas responses to a questionnaire sent out in advance wereprovided by the Central Bank of Russia (CBR) before andduring the mission. The assessment has been supported bydiscussions with the CBR and the insurance marketparticipants. the Russian insurance industry ranked 27th inthe world. Non-life insurance premium accounted for 89percent of GPW while life insurance for only 11 percent.Another factor that further undermined the profitability ofthe insurance industry in 2013-2015 has been the raisingclaims inflation in the MTPL segment of the market. In 2015,the industry also faced with the consequences of the Westerneconomic sanctions which effectively closed access to thehigh quality Western reinsurance capacity for the Russianinsurers that provide coverage for 1500 large Russiancompanies that were put on the sanctions list. In the past,the Western reinsurers provided over 80 percent ofreinsurance capacity for such risks. The furtherconsolidation of the sector will lead to a better performinginsurance market.In the case of Russia, the main objectiveof insurance supervision is to ensure that insurers fullycomply with core regulatory norms fixed by the law in thefollowing four areas of insurance operations: (a) solvency(capital adequacy); (b) insurance reserves; (c) assetscovering own funds; and (d) assets covering reserves. Themost profound implications of the current rule-basedinsurance supervision is a likely underestimation of thesector’s solvency. While the dispersion of insurancesupervisory functions among numerous CBR departments withvarious reporting lines carries certain advantages (such asa reduced potential for the conflict of interest), it alsohas a potential for major drawbacks.