RUSSIA: new law creates a federal database of home property insurance

The draft of a single automated system for home property insurance "Housing Property" is prepared, ARIA will be the system operator. The law, within which this project was developed, was signed on August 3, 2018.

The project of the system was developed by RNRC. The new law provides that RNRC will accept 95% of insurers' liabilities under risk of loss of housing property for obligatory reinsurance and 60% of liabilities under risks of damage. The purpose of "Housing Property" system is informational support of insurance of dwelling houses, apartments, and other types housing property. The database will contain information about insurance contracts, indemnity amounts, and other information related to the insurance of housing property, determined by ARIA.

As Igor YURGENS, the President of ARIA, explained - ARIA established a working group on housing property insurance, which, among other things, will develop requirements for new system, "since it will be used for immediate assistance to citizens whose housing property was damaged as a result of emergency situation", he added.

On August 4, 2019, the new law and system will be operational, participants of the Automated Information System "Housing Property" will include federal and regional authorities, ARIA and the Central Bank. ARIA will input data about insurance programs, maintain a register of contracts with regional breakdown, claim cases, and update an emergency risk map with aggregate liability of insurers under housing property insurance contracts by regions. Within 3 days after each reporting month insurers will send information to the system about concluded insurance contracts and paid claims or claim denials, indicating the reasons.

The new law on home emergency insurance was developed following large scale floods in the Far East in 2013 for the purpose of reducing the burden on the federal budget for compensation of damage to citizens who lose their homes as the result of natural disasters by transferring some part of costs to insurers. Drafts of the new law underwent multiple changes based on insurers' remarks before finally being signed into law by the President on August 3 this year.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

RUSSIA: agro insurance in 1H2018 dropped by 36%

The agro insurance segment based on the Central Bank dropped by 36% to RUB 1.66 billion in the 1H 2018. The biggest contribution to the segment was made by agro insurance without state support (+2.8% to RUB 904.3 million), according to the National Association of Agriculture Insurers (NAAI).



Public insurers appoint Achim Bosch to reinsurer board

The supervisory bodies of Deutsche Ruckversicherung AG and the Association of German Public Insurers decided today, to appoint Achim Bosch (53) to the executive board of the two reinsurers, where he will be responsible for non-life reinsurance.



HOEPKE, Munich Re: I expect at least a stable renewal round in 2019

After severe storm damage in Japan and the United States, Munich Re is looking with a little more optimism to the next renewal season. "I expect at least a stable renewal round in 2019," Board member Doris HOEPKE said in Baden-Baden. Until recently the reinsurer's expectations were leaning towards a stagnant season.



Five new XPRIMM insurance reports on the Baden Baden stands

Five new titles are available this year on the XPRIMM Baden-Baden press stands opened in the Kurhaus Casino and in Baden Baden main locations, presenting the latest statistical data and comprehensive analysis for the CEE, SEE and CIS insurance markets.


See all