Russia has passed legislation enabling foreign insurance companies from the member states of the World Trade Organization (WTO) to create branches and carry out insurance business in the country.
The new regulation will come into force on Sunday.
To work in Russia, foreign insurers will have to provide proof of assets worth at least $5 billion and obtain permits from the Bank of Russia, which will supervise their operations in Russian territory.
The companies will be allowed to operate in third-party liability insurance, voluntary insurance and reinsurance through their branches. The conditions for their work will be comparable to those established for Russian insurers. For instance, companies seeking to enter the Russian insurance market will be obliged to provide a security deposit not lower than the minimal value set for Russian insurance firms.
The legislation also enables authorities to deny companies the right to open a branch in Russia if the share of foreign firms in the country’s insurance market exceeds 50%.
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