Foreign investors are waiting. The Ministry of Finance promises to liberalize the insurance market

The Ministry of Finance has prepared a number of amendments to the legislation that regulates the Belarusian insurance market. As expected, the amendments will come into force this year. This was said by the Head of the Main Department of Insurance Supervision of the Ministry of Finance Sergei Osenko at the press conference on 29 March 2017.

According to his words, it is planned to cancel the conditions for the cost of insurance premiums under voluntary life insurance and supplementary pension insurance contracts only if they are signed with the state insurance organization. “In addition, it is planned to lift the ban, relating to governmental authorities, on the conclusion of life insurance contracts only with state insurance companies. Another innovation is that life insurers will be given the right to carry out the whole range of types of insurance aimed at protecting life and health of citizens,” the representative of the Ministry of Finance told.

According to him, it is expected that all innovations will be adopted already this year. However, specific changes in the insurance market following the adoption of these conditions can be expected only in 2018-2019.

As the General Director of the Belarusian Association of Insurers Irina Merzlyakova emphasized, the insurance market of Belarus is awaiting the entry into force of new conditions for the activities of insurers. According to the head of the association, a number of foreign investors are already showing interest in the Belarusian insurance market. Therefore, we can expect that in the next two or three years new insurance companies with foreign capital will start operating in Belarus.

For January-December 2016, the insurance companies of the Republic of Belarus received BYN 971.9 million of insurance premiums. According to the Ministry of Finance, the growth of insurance premiums against the same period in 2015 made 18.1%. For January-December 2016, insurance premiums under voluntary classes of business amounted to BYN 542.1 million, which is BYN 113.5 million more than a year earlier. Insurance premiums under compulsory classes of business for 2016 amounted to BYN 429.8 million, which is BYN 35.7 million more in comparison with the previous year. The percentage of voluntary classes of business in the total amount of insurance premiums is 55.8% (for January-December 2015 – 52.1%) For January-December 2016, insurance indemnity payments and insurance payment coverage in total across the republic made BYN 537.4 million and exceeded this indicator for the similar period of 2015 by BYN 64.8 million. A proportion of insurance payments in the total sum of insurance premiums for January-December 2016 amounted to 55.3% (for 2015 – 57.4%). For January-December 2016, the insurance companies paid BYN 111.7 million to the budget and non-budget funds (for January-December 2015 – BYN 144.8 million), including BYN 65.6 million as taxes and non-taxes payments to the budget, BYN 46.1 million as payments to the non-budget funds (for January-December 2015 – BYN 96.0 million and BYN 48.8 million respectively).

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