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

ON THE MOVE

AIG Life Limited (UK) announces the appointment of a new CEO

AIG Life Limited (UK) announced the appointment of Philip WILLCOCK - the former CEO of AVIVA's Indonesian and Italian ventures - as CEO, subject to regulatory approval, effective March 1, 2019. He will be based in London and will report to Adam WINSLOW, CEO, International, Life & Retirement.

13.12.2018

Sylva de FLUITER takes over as head of UNIQA Re AG

Sylva de FLUITER will take over as head of UNIQA Re AG in Zurich as of 1 January 2019, the Austrian group announced. Until year end she will work hand in hand with long-time Managing Director Hans Uwe MULLER, who will retire after 14 years at UNIQA Re.

12.12.2018

MERCER to name Bala VISWANATHAN Chief Operating Officer

MERCER, the consulting subsidiary of MMC - Marsh & McLennan Companies, announced that Bala VISWANATHAN, CEO of Jardine Lloyd Thompson Group plc (JLT) UK & Ireland Employee Benefits, will join MERCER as Chief Operating Officer.

12.12.2018

TOP EVENT

Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.

06.11.2018

IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.

05.11.2018

See all