Report Russia May Lower Entry Barriers for Insurers

A report from Dow Jones Newswires indicates that Russia’s Economic Ministry is seeking government backing to lower the existing barriers to entry for foreign companies in the country’s insurance market.

Foreign life companies are limited to a 15 percent stake in Russian companies, while P/C insurers are not allowed to own any stake in companies that provide mandatory types of insurance coverage.

The current rules have become a sticking point that is hampering Russia’s bid to join the World Trade Organization. According to the DJ article, the Economic Ministry is seeking to raise foreign participation to 50 percent, and drop the prohibition on obligatory types of insurance within eight years of Russia’s accession to the WTO.