BELARUS: Belarusian insurance market is expecting liberalization and changes

The planned changes in the local insurance sector will affect life insurance. Besides, the market is expecting liberalization, correction of working conditions and development of online insurance, said the Head of the insurance supervisory main department at the Ministry of Finance of Belarus - Sergey OSENKO during his interview for BELTA (Belarusian information agency).

According to him within the last 3 years the market has increased significantly (insurers' assets - 1.5 times, equity capital - 1.3 times, reserves - 1.8 times, claims - 1.6 times, premiums - 1.5 times). The market is experiencing an increasing demand for voluntary health insurance and life insurance (premiums of voluntary classes in general jumped by 1.5 times, life insurance - by 2.9 times and health insurance - by 3.7 times). At that accumulative insurance has been developing faster than the risk one (for the period of 2015-2017: 29.7% vs 13.3% accordingly).

Liberalization started in 2014. This year changes will happen in life insurance and supplementary pension insurance. Also, there will be implemented new solvency requirements for insurers under international standards. In compulsory insurance, explained OSENKO, the mentioned changes assume establishment of premiums, claim payments and liability limits in the national currency against dedollarisation of the national economy, as well as decrease of tariffs for some classes. And it is very important to improve online insurance. In the nearest future it will be introduced in MPTL as the most massive insurance class. Another key factor is introduction of new products. In 2017 insurers launched 5 new products of voluntary nature (insurance of avia passengers, insurance of investment risks and export credit late payments, etc.).

Fraud situation shows increase of the number of fraud facts, submitted to law-enforcement authorities (in 2016 - 93, in 2017 - 108, in Q1 2018 - 39), based on the information from the Ministry of Finance. The majority is related to unreasonable premium and claim payments, issuance of invalid policies, false insurance events. OSENKO believes that it is necessary to strengthen control over revealing fraud facts and develop cooperation with internal affairs authorities.

The main target in general is improvement of the capitalization level and financial stability of the market participants, thus - competitiveness on an equal footing with global players, which intend to enter the domestic insurance market, said OSENKO.

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