New approach to insurance business

Deputies of the Committee on Economic Policy, Budget and Finance In the first reading considered law-in-draft “On Amendments and Additions to Certain Legislative Acts of the PMR”. This is the initiative of the Supreme Council Deputy Yuri Kucherenko. The law-in-draft gives the central bank of the PMR additional powers in the sphere of control over the activities of insurance organizations.

In particular, the law-in-draft defines the list of documents required to obtain a license. Among others, obtaining a license will require documents confirming the sources of origin of funds contributed by the founders of the license applicant. Additionally, the consent of the PRB will be required for participation of foreign legal entities in the authorized capital of insurance organizations established in the PMR. The project envisages regulation of the size of participation of foreign capital in the authorized capital of insurance organizations. The maximum amount of foreign capital in the authorized capital of insurance organizations should not exceed 50%.

The project stipulates that the insurer must have its own website on the Internet, which contains basic information about the insurer. In addition, insurers are expected to maintain registers of insurance agents and insurance brokers with whom they have contracts for the provision of insurance-related services.

The deputies of the Committee supported this legislative initiative and will recommend to the Supreme Council to adopt the law-in-draft in the first reading.