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