Source: Russia to purge insurance market

MOSCOW, Feb 18 (PRIME) -- Russian authorities plan to strengthen oversight over the insurance market and purge it leaving large players, a high-ranked government official told reporters Thursday.

“We will now clean up the insurance companies. I think that in a year or two the situation may be improved significantly,” the source said.

Currently, the government is discussing transferring bailout functions to the central bank’s Deposit Insurance Agency (DIA). “First, we should properly inspect them, oversight must work with them seriously, so that they have a rehabilitation plan together with the central bank if necessary, and we want the DIA to receive such powers,” the source said.

Large players will remain, and consolidation of some companies is inevitable, but is has to happen. “We have too many insurance companies,” the official said.

The market must be prepared to take over compulsory medical insurance. “This medical insurance is in fact not an insurance here as we have no insurance companies with which the state may cooperate as partners,” the official added.

End