Among the conditions stimulating the development of the life insurance segment, the head of ARIA named the freedom of investing of insurance companies’ reserves and own funds, reduction of frequency of regulatory changes, adoption of new laws - on the guarantee system in the life insurance segment and on shared life insurance, creation of conditions to diversify sales and introduction of new life insurance products, levelling of consumers benefits on similar long-term savings products in various segments of the financial market, as well as accessibility of long-term endowment agreements for consumers by simplifying the paperwork.
“A crucial priority is regulation in terms of placement of funds; a greater degree of freedom is important for insurers,” Ufimtsev stated. According to him, the regulator is currently making attempts to “find a balance between reliability and profitability,” however, “there has been a bias towards the predominance of reliability,” therefore, “too stringent requirements” have been adopted, which lead to the fact that “insurers mainly place reserves and their own funds for state, municipal and corporate debt.”
According to him, it is important to create conditions for introducing new products to the market and simplify procedures for consumers in conclusion of long-term savings life insurance agreements. A car or real estate can be insured in a few clicks today, while an insurance agent is forced to provide a person with a huge set of documents in order to issue a life insurance policy. And the purchased product is “a simple, ordinary endowment life insurance policy, - he explained. - I think this is wrong,” the ARIA executive noted.
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