Support The Moscow Times!

Insurers Undercapitalized

About 200 insurance companies will be unable to comply with additional capitalization requirements by the end of 2011, Alexander Koval, head of the Federal Service for Insurance Supervision, said Tuesday.

Additional capitalization by year-end is needed by 160 companies that offer universal insurance, 52 that specialize in life insurance, 84 that offer mandatory and voluntary medical insurance and 91 reinsurance companies.

"Several companies with a capital deficit look like they are fighting to survive and are significantly increasing their contracts," Koval said. People that have insurance may face some problems by Jan. 1, 2012, when the licenses of insurers with insufficient capitalization are revoked, he said. Koval also said automobile insurer Rosstrakh is going to loose its license in the nearest future.

(Interfax)

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

Please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world's largest country.