VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: At the joint meeting of the Finance Ministry and the Ministry of Economic Development, I talked about the need for legislative reform for oversight of financial institutions, including insurance companies. A corresponding bill was to be introduced before the State Duma, and I am told it has been submitted. What are your plans to continue working on this issue, and how will you implement its updated provisions?
Alexander Koval: The law is now under discussion in the State Duma. It introduces fairly tough regulations regarding financial stability, insurers' solvency, financial oversight and information disclosure, that is, public disclosure so that individuals and legal entities can be satisfied that the insurance company is reliable. The law does not provide for overly strict insurance oversight, but it will protect our physical persons and legal entities by giving them additional guarantees that, if they have chosen an insurance company and bought an insurance policy, they can be assured that in the event of adverse circumstances they will receive insurance payments in a specific amount and on time.
We will of course continue to monitor the situation, as we did before, but this law gives us an additional tool so that eventually the measures it envisages will leave only financially stable, solvent and responsible insurance companies in the insurance market.
Vladimir Putin: Lately, we have been talking a lot about the need to remove all sorts of administrative barriers that impede business growth. I hope that while your agency and the amended law will safeguard the interests of people in matters of life, property and other insurance, they will not impose an additional barrier on the growth of the insurance industry.
Alexander Koval: We act strictly within the law and abide by it, Mr Putin. The primary function of the Insurance Supervision Service is precisely to protect the interests of the public and the state. Our job is to see to it that the requirements for insurance companies set forth by law are strictly observed. Our actions are tightly regulated. In accordance with the law, we do not immediately rush to punish a company, but first try to rehabilitate it. The company presents us with a plan to restore its solvency, and then we help the company according to this plan.
Vladimir Putin: How is the insurance industry doing overall? How did it weather the downturn, and how is it doing now that we are coming out of the downturn.
Alexander Koval: The year 2009 was fairly difficult for insurers. Total premiums collected dropped by 7.5% compared to 2008. In fact, we had serious concerns that this trend might continue. But the numbers from the fist quarter show that the industry is recovering. It has grown by 5.2%.
Vladimir Putin: Over what period?
Alexander Koval: The first quarter of 2010, as compared to the same period of 2009. This gives us grounds to believe that the insurers - the most stable, prestigious companies - have come through the downturn. The year should end well, with a net gain.
Vladimir Putin: Good.
