Additionally, in accordance with the "Main Directions of Development of the Financial Market of the Russian Federation for 2024 and the period of 2025 and 2026, as well as 2025 and the period of 2026 and 2027" developed by the Bank of Russia, the insurance market continues to work on creating and ensuring the functioning of a centralized system for collecting, analyzing and storing information with the direct participation of the Bank of Russia. This system will provide insurance companies with equal access to high-quality information, which is necessary for reliable risk accounting. They will be able to fine-tune pricing taking into account individual risks of clients, as well as develop new insurance products. For these purposes, a regulatory and technological framework has been created to ensure the functioning of a centralized system for collecting, analyzing and storing information with the direct participation of the Bank of Russia (AIS insurance): requirements have been established for the data transferred to it, for the security of the system. In 2024, the transfer of data on compulsory and voluntary motor insurance and home insurance began. In the future, work will be carried out on building and systematizing mechanisms for monitoring the completeness and quality of data in the AIS insurance using all available mechanisms
Legal affairs
Obligations and requirements to provide InsurTech-services
According to par. 2 of Article 4.1 of the Law of the Russian Federation dated November 27, 1992 No. 4015-1 "On the Organization of Insurance Activities in the Russian Federation" ("Insurance Law"), the activities of insurance entities (insurance organizations, foreign insurance organizations, mutual insurance societies, and insurance brokers) are subject to licensing.
Licenses for insurance activities are issued by the Bank of Russia. The license is issued without a limitation on its term of validity and is effective from the day following the day of the Bank of Russia's decision to issue the license, although the term of validity may be limited in some cases (par.1, 2 of Article 32.5 of the Insurance Law).
Qualification requirements regarding education and work experience in the field are imposed on managers and other key employees of insurance entities, as well as other requirements (for example, compliance with business reputation requirements) (Article 32.1 of the Insurance Law).
Foreign insurance organizations intending to establish branches in the territory of the Russian Federation shall be registered in a member state of the World Trade Organization, have experience in conducting insurance activities through a branch in a country other than the WTO member state, not be registered in offshore zones, and have assets on the balance sheet equivalent to at least 5 billion US dollars by the end of the reporting year (par. 1 of Article 33.1 of the Insurance Law).
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
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Economic conditions
Market size for InsurTech-services and biggest companies in this business area