Putin signed a law establishing a National reinsurance company

Russian President Vladimir Putin submitted amendments to the law “On organization of insurance business in the Russian Federation” according to which will set up a national reinsurance company. The corresponding document was published on the official Internet portal of legal information.

The national reinsurance company is created for additional protection of property interests of policyholders, and to ensure the financial stability of insurers, the document says. The Central Bank owns 100% of the shares lazdauskas of the company.

According to the law, other persons may acquire not more than 10% of the shares of the National reinsurance company. The company will not deal with insurance. Its activity consists in reinsurance in particular, we are talking about participation in the activities of reinsurance pools under the laws on specific types of compulsory insurance.

In accordance with the law, insurers can transfer its obligations for reinsurance after 60 days after the issuance of the licence of the National reinsurance company. However, this cannot occur earlier than 1 January 2017.

About the Central Bank’s plans to create a reinsurance company became known in April last year. The regulator is considering several solutions to the problem of insurance of the Russian companies targeted by the sanctions.

One option was the creation of a reinsurance state-owned companies with funding from the Federal budget. However, this idea is not supported by the Ministry of Finance. About this RBC reported Deputy Finance Minister Alexei Moiseev. The source of RBC in the Bank of Russia said that if the Department does not allocate budget money, the financing of the project may be engaged in the Central Bank. About the option of creating gospertstrasse at the expense of means of the regulator also reported “Interfax” citing a source in the reinsurance market.