Insurance Companies Plead to Central Bank for Easier Regulation

The All-Russian Union of Insurers has addressed the Bank of Russia with a request to temporarily ease the requirements for insurance market players amid the coronavirus pandemic and offered a number of measures to support the market, RIA Novosti reported Sunday.

In a letter to the central bank’s head Elvira Nabiullina obtained by the state-run news agency, the industry group proposes postponement of the date of providing financial and other reports for the first quarter and March 2020.

Easing of the regulator’s requirements to creditworthiness and financial solvency of insurers is also among the suggested measures to support the sustainability of Russia’s insurance market proposed by the union.

The Bank of Russia decided to keep its key rate at 6% per annum last week after previously easing the general lending rate several times in a row. The regulator also announced measures to support banks, businesses and households.

The moves are aimed at preserving the ability of the financial sector to provide required resources to the economy, protect interests of those affected by the coronavirus infection and help the financial sector adjust to restrictions targeted at tackling the virus spread, the regulator said.

The COVID-19 coronavirus outbreak that occurred in late 2019 in Central China has spread to over 150 countries and territories and has been designated as a pandemic by the World Health Organization.

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