Insurance Law in Russia

Several years back, Russia joined the World Trade Organization (WTO) which led to a series of good changes in several areas of the law. One of the most important laws is the Russian Insurance and Reinsurance Act which was amended not long ago. Based on the new insurance legislation which allows foreign investors to open insurance and reinsurance companies in Russia, and the country’s membership to the WTO, the share of foreign investment is now 50%, compared to the previous 25%.

Our Russian lawyers can offer more information on the investment laws allowing foreign enterprisers to open insurance and reinsurance companies.

The new Russian Insurance Law

The new insurance legislation in Russia was enabled at the end of 2015 and provides for new requirements for those carrying out insurance and reinsurance activities. This kind of activities must receive approval from the Russian National Bank. Among the documents to be supplied to the Central Bank are the company’s statutory documents after it was registered with the Russian Trade Register, information about the shareholders and a license application.

According to the new Russian Insurance Law, the provider must also sign an agreement with an authorized depository who will act as a custodian and will keep the company’s capital. The depository will also change the reserve into securities.

The Russian Insurance Contract Law

Both insurance and reinsurance providers are allowed to conclude contracts with clients. These contracts must respect the Russian Civil Code, but also the Insurance Contract Law. There are several types of insurance and reinsurance contracts, a provider can offer:

• -          life and health insurances;
• -          property insurance;
• -          retirement insurance;
• -          disability insurance;
• -          civil responsibility insurance.

Russian companies may also conclude business risk insurance contracts. According to the insurance contract legislation, the insurer must cover damages related to the object of the contract, in accordance with the amount paid by the insured, called premium. Reinsurance contracts, on the other hand, are signed between insurance providers.

For complete information on the new provisions of the Insurance Law, please contact our law firm in Russia.