Bank of Russia extends easing measures expiring on 31 December 2024
Taking into account the practice of implementing the support measures earlier taken for the insurance market amid the sanctions and given the current economic and geopolitical environment, the Bank of Russia plans to extend certain measures that are to expire in 2024. In addition, a number of temporary requirements for insurers have already been integrated into Bank of Russia regulations1 on a permanent basis.
Measure to expire:2
– in relation to bonds issued by a foreign company to the benefit of a Russian entity and purchased by an insurer before 1 December 2022, the option to use the rating assigned to the Russian entity for the purpose of assessing equity and risks.
Measures to be temporarily3 extended through 31 December 2025:
– insurers’ right not to disclose the data sensitive to sanction risk, which are stipulated by the Decision of the Bank of Russia Board of Directors,4 including the information on an insurer’s executives; the structure and list of an insurer’s shareholders (members), including persons controlling or materially influencing the insurer; the structure and list of shareholders (members) of an insurer’s specialised depository; the information on the structure of a mutual insurance company’s shareholders (members) and on its former shareholders (members); the information on the reorganisation of an insurer or a mutual insurance company (except for the information about the decision on the reorganisation approved by the authorised management body without disclosing the form of the reorganisation; about each of the legal entities engaged in the reorganisation and established (continuing operations) as a result of the reorganisation; and other data on the reorganisation subject to disclosure);
– insurers’ right not to disclose, when releasing their accounting (financial) statements, the data sensitive to sanction risk, which are stipulated by the Decision of the Bank of Russia Board of Directors,5 as well as the right not to disclose the actuarial opinion and the report on the review of the actuarial opinion with respect to the information sensitive to sanction risk;
– insurers’ right not to disclose the information on the transfer of the insurance portfolio in the cases stipulated by the Decision of the Bank of Russia Board of Directors;6
– the option not to disclose data contained in the register of insurance agents and insurance brokers;7
– non-application of the requirements8 for mandatory reinsurance with Joint Stock Company Russian National Reinsurance Company (JSC RNRC) of risks under insurance (reinsurance) contracts signed between the parties if one of them has a share of at least 25% in the other’s authorised capital or if the parties to the contract on reinsurance of obligations under the main insurance (reinsurance) contract are members of the same insurance group;9
– the use of the list of offshore zones approved by the Bank of Russia Board of Directors10 for the assessment of persons entitled to directly or indirectly make decisions regarding insurers’ shares (stakes).
1 In particular, the option not to apply these requirements for voluntary endowment and investment life insurance contracts containing the term on paying the insurance premium in instalments during five or more years and a number of requirements stipulating the conditions and procedure for insurance of this type were integrated into the regulation on a permanent basis pursuant to Bank of Russia Ordinance No.
2 Introduced by the Decision of the Bank of Russia Board of Directors, dated 21 June 2024, on requirements for insurers and mutual insurance companies.
3 Including taking into account possible extension of the Bank of Russia’s special powers to approve such decisions established by Federal Law No.
4 The Decision of the Bank of Russia Board of Directors, dated 22 December 2023, on determining the list of information of credit institutions, non-bank financial institutions, and organisations providing professional services in the financial market subject to disclosure pursuant to Russian laws or Bank of Russia regulations, which credit institutions, non-bank financial institutions, and organisations providing professional services in the financial market are entitled not to disclose from 1 January 2024 through 31 December 2024, and on determining the list of information envisaged by Russian laws or Bank of Russia regulations, which the Bank of Russia is entitled not to disclose on its website from 1 January 2024 through 31 December 2024.
5 The Decision of the Bank of Russia Board of Directors, dated 26 December 2023, on determining the list of information that non-bank financial institutions are entitled not to disclose and information not to be published on the Bank of Russia website.
6 Ibid.
7 The Decision of the Bank of Russia Board of Directors, dated 26 December 2023, on requirements for insurers and mutual insurance companies.
8 The requirements are stipulated by Clause 1 of Article 133 and Clause 4 of Article 132 of Law of the Russian Federation No.
9 The Decision of the Bank of Russia Board of Directors, dated 26 December 2023, on requirements for insurers and mutual insurance companies, as amended by the Decision of the Bank of Russia Board of Directors, dated 26 April 2024, on amending the Decision of the Bank of Russia Board of Directors, dated 26 December 2023, on requirements for insurers and mutual insurance companies and the Decision of the Bank of Russia Board of Directors, dated 13 September 2024, on amending the Decision of the Bank of Russia Board of Directors, dated 26 December 2023, on requirements for insurers and mutual insurance companies.
10 The Decision of the Bank of Russia Board of Directors, dated 22 December 2023, on the requirements for credit institutions and non-bank financial institutions (persons entitled to directly or indirectly use shares (stakes) being part of credit institutions’ and non-bank financial institutions’ equity).
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