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Insurance in Russia
Extension of independence of producers, formation of market infrastructure, sharp lowering of the sphere of the state impact on development of relations of production and distribution of the material benefits, in a root changed process of formation of the Russian insurance market, its contents, types of the insurance services offered natural and legal entities. The beginning of creation of the Russian voluntary insurance it is necessary to read the fact of real demonopolization of insurance activities and, as a result of it, rapid growth of number of alternative insurance companies. Premises of development of insurance business in our country were: solidifying of a non-state sector of economy, growth of volumes and variety of a private property of natural and legal entities as source of demand for insurance services. Thus development of the market of real estate and mortgage lending, and also privatization of the state housing stock, abbreviation of once comprehensive warranties provided by system of the state social insurance and social security is of great importance. Today absence of warranties shall be filled with different forms of personal insurance.
Social development of Russia caused need of transition to the insurance market which functioning leans on knowledge and use of economic laws, such as the cost law, the supply and demand law. It is necessary to emphasize that the insurance market is a special social and economic environment, a certain sphere of the economic relations where object of purchase and sale insurance protection appears, supply and demand on it is created. Objective basis of development of the insurance market - need of support of uninterrupted operation of reproduction process by rendering the monetary help to victims in case of unforeseen unfavorable circumstances.
The insurance market can be considered also as the form of the organization of the monetary relations on formation and distribution of insurance fund for support of insurance protection of society, as set of insurance companies (insurers) which take part in rendering the appropriate services.
On June 28, 1991 No 1499-1 Act of the Russian Federation "Was adopted about medical insurance of citizens in the Russian Federation" (later changes in edition of the Act of the Russian Federation of 02.04.1993 N4741-1, Federal laws of 29.05.2002 N57-FZ, of 23.12.2003 N 185-FZ, with the changes made by the Decree of the Russian President of 24.12.1993 by N2288, the Federal law of 01.07.1994 N9-FZ) defining legal, economic and organizational bases of medical insurance of the population in the Russian Federation. The law provided gain of interest and responsibility of the population and the state, the enterprises, establishments, the organizations in health protection of citizens in new economic conditions and support of a constitutional law of citizens of the Russian Federation on medical care. Thus, the basic program of mandatory medical insurance of citizens of the Russian Federation was approved.
According to the resolution of the government of the Russian Federation of February 10, 1992 of N76 on the basis of Board of the Gosstrakh of RSFSR the Russian State Insurance Company was formed.
In the early nineties in the Russian Federation revival of the national insurance market which proceeds so far began. The legislative base of legal regulation of insurance activities was put by the law "About the Organization of Insurance Business in the Russian Federation" of November 27, 1992 (with changes of 31.12.97 N 157-FZ). With adoption of this law the new stage in development of insurance business began, this document formed the base for development of program actions on development of insurance business in Russia. The Civil code (chapter 48 "Insurance") which governs legal relations in case of insurance became the second main legislative document regulating insurance activities.
The Civil Code of the Russian Federation already accurately defined that it is necessary to understand as property insurance, incomplete property insurance, additional property insurance, insurance of responsibility for infliction of harm, responsibility insurance under the contract, insurance of enterprise risk, reinsurance.
All those economic relations which express creation of special monetary funds from contributions of natural and legal entities and the subsequent use of these funds for reimbursing to the same or other persons of damage (harm) in case of approach of different unfavorable events in their life and activities, and also for payments in others cases caused by insurance conditions fall under broad concept of insurance.
For the solution of tasks of support of reliability and financial stability of system of insurance one of priority activities of insurance companies and the reinsurance companies is increase of the minimum size of authorized capital, and also its formation is exceptional at the expense of money.
Certainly, the state shall regulate and exercise monitoring over insurance activities of insurance companies.
In Russia insurance activities are regulated by above-mentioned laws, and also accepted later: The act of the Russian Federation of November 30, 1999 of No 204-FZ "About modification and additions in the Law of the Russian Federation "About the organization of insurance business in the Russian Federation", the Act of the Russian Federation of July 24, 1998 of No 125-FZ "About mandatory social insurance from occupational accidents and occupational diseases", the Resolution of the Government of the Russian Federation of May 26, 2000. No 50-H "The provision on output of permissions to insurance companies with foreign investments" and "The provision on a procedure of payments of the size (quota) of involvement of the foreign capital in authorized capitals of insurance companies", Resolutions of the Government of the Russian Federation of 07.05.2003 No263 "About the Approval of Rules of Mandatory Insurance of a Civil Liability (CMTPL) of Owners of Vehicles" and No265 "About Modification and Additions in Acts of the Government of the Russian Federation concerning Support of the CMTPL of Owners of the HARDWARE" and others.
Formation of the Russian system of supervision of insurance activities relies on world experience. The state supervision of insurance activities till August 14, 1996 was exercised by Federal service of Russia on supervision of insurance activities (Russian Insurance Supervision). Functions of monitoring over observance of requirements of the legislation were laid to it in the sphere of insurance and regulation of these activities by means of licensing, guiding of the unified register of the insurance and reinsurance companies, registration of insurance brokers. In 1996 the Russian Insurance Supervision is liquidated, and its functions are transferred to Department of insurance supervision of the Ministry of Finance of the Russian Federation.
On April 8, 2004 the Government of Russia approved as the Resolution No 203 basic functions of the Federal Service of Insurance Supervision (FSIS). The Federal Service for Insurance Supervision is under authority of the Ministry of Finance of the Russian Federation and is the federal executive authority which is realizing functions on monitoring and supervision in the sphere of insurance activities (output, suspension and revocation of license of insurance companies; guiding of the unified state register of subjects of insurance business and insurance associations; monitoring of activities of insurers, up to carrying out checks; receiving, processing and analysis of the statistical reporting of insurance companies; appeal to the court with claims about elimination of subjects of insurance business, etc.). The state insurance supervision leans on operating system of the legislation which includes the general legal acts, the special insurance legislation, bylaws and departmental normative documents.
Need of the state supervision of insurance activities is caused by need of protection of insurers and interest of society in development of the insurance which is providing compensating of damages and being a source of the considerable investment resources.
Elements of system of insurance supervision which can be combined in a different way in different countries: mandatory publication of data of insurance companies; normative instructions; licensing; current supervision. Insurance regulation within EU is directed on formation of the uniform insurance market which develops in two directions: freedom of activities of national insurance companies in all territory of EU and harmonization of the insurance legislation.
Formation of new system of managing in the Russian Federation made basic changes to the organization of insurance business. The market conversions transforming the economic relations when the producer starts working at own risk, according to own plan and нес¨т for it responsibility, impose new requirements to insurance. Insurance is connected to compensation of the material losses in the course of a social production. Risk character of a social production, generates human relations on warning, overcoming, localization and on unconditional compensation of the caused damage. However the enterprises and the organizations of different forms of ownership appearing as insurers, feel need not only for compensation of the damage expressing in loss or damage of fixed assets and current assets, but also for compensating of the half-received profit or additional expenditures because of stimulated idle times (spasmodic deliveries of raw materials, insolvency of wholesale buyers).
Relevance of a case in point amplifies also because in the modern society, along with traditional mission - support of protection against the elements (an earthquake, a flood, a storm, etc.), accidental events of technical and technological character (fires, accidents, explosions, etc.), - object of insurance are become more increasing by losses from different criminogenic phenomena (thefts, assaults, stealing of vehicles, etc.). Besides, changes affect also the sphere of property and personal insurance of citizens that is directly connected to interests of the population, and the problem of compensation of losses for the person always was and remains primary. Centuries-old experience and insurance history convincingly proved that it is a powerful factor of the positive impact on economy.
Now about 1400 insurance companies which composition on forms of ownership has the following indexes work at the insurance market of Russia: the mixed –58%; the private - 36%; the state – 5%; the municipal – 1%. The share of the insurance premiums collected by all insurers, makes less than 5% of an internal bulk product whereas in the countries with developed market economy this index makes 8-10% of gross domestic product. The reasons of that services of the domestic insurance market aren't in the active demand in that, first of all, that the Russian insurers don't have enough money. Unfortunately, our legal entities and individuals are still rather poor to measures of the developed countries of the world. Therefore means which they can select for insurance, significantly less, than the funds allocated by insurers in the developed countries. It is fair as in absolute measures (annually paid insurance premiums in dollar calculation), and in the relative (a share of the budget of the insurer, directed on insurance). Therefore the share of insurance in the Russian gross domestic product is significantly lower, than similar shares in gross domestic product of the developed countries.
Insurance can be mandatory and voluntary, it is both physical, and to legal entities, in case of insurance different aspects (for example, the accounting of professional activity, specifics of the territory of living, insurance of collectives, etc.) can be considered.
The insurance services rendered by the modern insurance companies:
- life insurance;
- insurance upon accidents and diseases;
- pension insurance;
- medical insurance;
- insurance of means of land transport;
- insurance of means of water and air transport;
- insurance of loads;
- property insurance (the property, belonging to citizens, property of the enterprises, the organizations, insurance of structures, locations);
- mortgage insurance;
- accumulative insurance;
- insurance of animals;
- insurance of financial risks;
- insurance of a civil liability of owners of vehicles;
- insurance of other types of responsibility;
- insurance of construction risks;
- insurance of the citizens leaving abroad;
- insurance of owners of plastic cards;
- pharmacological insurance, etc.
Since July 1, 2003 the Law of force of About Mandatory Insurance of a Civil Liability of Owners of Vehicles" came: "In case of implementation of mandatory insurance of a civil liability of owners of vehicles the insurer promises for a board caused by the contract of mandatory insurance in case of a loss occurrence to pay sustained the damages which have arisen owing to infliction of harm of his life, to health or property". Mandatory insurance of a motor vehicle liability (CMTPL) is mandatory for all owners of the vehicles (V), except for a case when the owner liability is insured by other person, and some other cases set by the legislation. Since January 1, 2004 maintenance of the HARDWARE on which the CMTPL policy isn't issued is forbidden. The policy of the CMTPL is included in the document list which the driver shall have in case of control of the HARDWARE and show on request of employees of road sentry duty.
The first ten the largest insurance companies of Russia following the results of 2004 enter: "Rosgosstrakh", "Ingosstrakh", "Kapital Strakhovaniye", "RESO-Garantiya", "Kapital RE", "SOGAZ", "ROSNO", "SG Uralsib", "the Insurance House of VSK", "Nadezhda RE".
|Category: Insurance history in the different countries of the world | Added by: Chance23 (21.04.2014)