In accordance with the Resolution of the Council of Ministers of the Republic of Belarus dated September 11, 2020 No. 528, changes were made to the procedure of transferring obligations by insurance companies under voluntary insurance contracts, insurance reserves and balances of funds of preventive measures to another insurance organization.
According to the press service of the Ministry of Finance, among the changes:
Reduction in the list of requirements for an insurance company that undertakes liabilities under voluntary insurance contracts;
specification of the list of information that must contain a notification of the transfer of liabilities, sent by the transferring insurance organization to the policyholders;
granting to an insurance organization that accepts liabilities under voluntary insurance contracts the right to receive information from the Ministry of Finance on the compliance with the legislation of insurance rules (amendments and (or) additions to them) of the transferring insurance organization.
Life insurance companies are entitled to:
transfer liabilities under voluntary personal insurance contracts, not related to life insurance, to an insurance organization that carries out insurance, not related to life insurance;
calculation of insurance reserves based on the cession under voluntary insurance contracts under the procedure and conditions of the formation of insurance reserves established by the Ministry of Finance, as well as in accordance with the individual rules of the formation of insurance reserves of the accepting insurance organization, if the accepting insurance organization applies such rules.
“Based on the experience of accepting liability under reinsurance contracts, it is possible to accept the entire amount of liability ceded under the reinsurance agreement (if at the time of transfer an insured event is declared) to calculate the reserve for declared but unsettled losses,” the press service of the Ministry of Finance stated.
The resolution comes into force three months after its official publication.