Proposed ammendments to the Law "On insurance business in the Russian Federation"
The State Duma begins to consider a set of amendments to the Law "On insurance business in Russia". These amendments stipulate introduction of the institute of independent actuaries and determine the role of self-regulatory professional organizations of actuaries in insurance business.
"Introduction of the institute of actuaries is one of the most effective ways to fight with dumping", said Alexandr Koval, Chairperson of the Russian Federal Service of the Insurance Supervision (FSIS).
According to the amendments an insurance company will be required to submit an independent actuarial assessment to FSIS once a year. Quality of this review will be actuaries’ own responsibility (as well as responsibility of professional actuarial association).
The current edition of the Law "On insurance Business in Russia" envisages certification of insurance actuaries. However the Ministry of Finance hasn't managed to develop qualification standards and procedures, and the Law has not been working properly. As a result the work of actuaries was limited to rate-making mainly.
Dumping in the insurance sector threatening to solvency of insurance undertaking and shortage of professional made FSIS think about changing status of actuaries. There are approximately 200 specialists in Russia, nearly 150 of them being members of the Guild of Actuaries. The Guild is the main candidate to receive the status of "self-regulated organization" with the right to establish professional standards and certify actuaries.
President of the Guild Vladimir Novikov welcomed the law project but proposed to introduce more strict qualification requirements for "self-regulated organization" status and actuaries.