RUSSIAN CENTRAL BANK INTENTS TO TIGHTEN INVESTMENT RULES FOR INSURERS

Russia’s central bank said on 9 August it was proposing to limit investments made by insurance companies into securities that were issued by a single entity, Reuters reports.

The central bank said in a statement that it proposed to cap such investments by an insurance company to 10% of that company’s total reserves. The purpose of this limitation, as stated by the bank representatives, is to increase the financial stability and solvency of insurance companies.

Insurers will have a three-year deadline to comply with the new requirements, the bank said.

(Source: http://xprimm.com/Russian-central-bank-intents-to-tighten-investment-rules-for-insurers-articol-2,12,33-11789.htm)