Insurance in the CIS is carried out in a voluntary and mandatory forms. State supervision of insurance activities by the Federal Service for Insurance Supervision. These
functions include: issuance of licenses for insurance activities,
supervision of insurance activities, the establishment of rules of
formation and placement of insurance reserves, the development of
various instruments. In Russia, particularly the tendency of much of compulsory insurance. From 1993 until the present time, the share of premiums for compulsory insurance has increased more than threefold. In I quarter of 1999 the share of premiums for compulsory insurance was about 38% in total premiums. Voluntary insurance is carried out under a contract between the insured and the insurer. Objects of insurance may be the property interests:
- Related to the life, health, disability and pensions of the insured (private insurance);
- Related to the possession, use and disposal of property (property insurance);
- Related to compensation for harm caused to the insured person or property of a natural or legal person.
The most popular types of insurance in the CIS are voluntary and mandatory health insurance. The
most rapidly in the voluntary insurance property insurance increases
(an increase of insurance premiums by 75%, its share in the total amount
for all types of insurance - about 20%). These figures show an increase of insurance services in the business sphere. With the growth of investment projects in Russia is developing its investment and insurance. In this activity there are three main areas:
- Insurance Coverage area for investment, above all, the basic insurance of the company;
- Insurance of foreign investors against political risks;
- Credit insurance.
Policyholders can be both physical and legal persons. Insurers are only recognized as legal persons who have received a license to conduct insurance business. Insurance companies in Russia have no right to engage in production, trade and banking intermediation. Insurance firms and companies tend to operate through insurance agents and insurance brokers. Insurance agents are the individuals or entities acting on behalf of an insurance company in accordance with authority. Insurance
brokers are individuals or legal entities that carry on insurance
mediation activities on its behalf on the basis of agency or insurer or
the insurer. The object of insurance may also be insured under one contract by several insurers. In this case the insurance is called coinsurance. In property insurance insurance amount can not exceed its actual value at the time of the contract.
In the CIS, most insurers do not insure their property at its full value. For example, the average sum insured for insurance of transportation owned by citizens, is less than 25% of middle-class car. Thus,
between the insurer and the policyholder is an insurance contract,
under which the insurer agrees to make an insurance claim for insurance
payment or other person in whose favor the contract of insurance, a
policyholder shall pay premiums on time. The
fact that an insurance contract, usually certify insured to the insurer
issuing the insurance certificate or insurance policy.
The basis for financial stability of insurance companies is that they have paid up capital and insurance reserves. To
ensure compliance with the obligations assumed by the insurance
companies make insurance payments received from insurance reserves. Insurance
companies typically Russian invest their funds in highly liquid
securities or funds placed on deposit in commercial banks stable. In
addition, the insurance company in Russia have the right to make loans
to policyholders who have concluded contracts of personal insurance,
within the sums insured under these contracts. To
ensure its solvency insurance companies must comply with specific,
statutory, regulatory relationships between assets and liabilities. A very topical issue of the Russian insurance is the lack of capital of insurance companies.
in Russia there are about 2.2 thousand of insurance companies, and the
total value of the insurance capital of just over 1.6 billion rubles. Only
11% of all insurance companies have an authorized capital of not less
than one million rubles, and 70% - less than 200 thousand rubles. The share of these insurers represent over 33% of all insurance operations. Thus, there is a real danger that, in most cases, many insurance companies may not be able to fully meet its obligations.
State Duma of Russia passed a law "On Insurance", which will have a separate study of certain provisions. Under
the bill, as the legal form of insurance (insurance companies) are
offered joint-stock companies or government organizations, as well as to
protect the interests of policyholders are needed the most stable form.
The successful development of insurance business in Russia requires strong government support. It
should include the provision of government guarantees, preferential
investment credits, tax incentives and even in some cases, partial