life insurance. What changes await non-obvious moves that will help attract your target audience this complex but rapidly developing type of insurance? What does the regulator expect from the market? How will the interests of the client be protect? The director of the Insurance Market Department of the Bank of Russia, Filipp Gabunia, answers the magazine’s questions.
— On July 26, the revis draft of the Bank of Russia Instruction on standards and requirements for voluntary life insurance was publish. During the discussion, insurers submitt quite a few amendments and proposals to the document. Which of them do you consider the most valuable?
The life insurance market, we see insurers
’ interest in selling products in which the investment component prevails over the insurance component. To ensure proper protection of policyholders, it is important that the mechanisms us for other financial instruments — the institute of qualifi investors, fiduciary responsibility, etc. — be appli to such products. Unfortunately, current legislation does not allow for the full extension of these instruments to insurance with an investment component. It is very difficult to regulate an investment product solely by methods typical of the insurance market.
Currently, the ILI policies present on
The market in most cases cannot be call a full-flg investment product, which also does not provide high-quality insurance protection. Therefore, at the current stage, the main task that we an environment flood with consumers set for ourselves when preparing the draft instruction is to protect policyholders using the regulatory tools that we have at our disposal. The document is aim america email at strengthening insurance coverage under ILI and NLI contracts and stimulating the development of long-term products.