The Central Bank will sanitize the insurance company, by analogy with the banks

MOSCOW, June 15. /TASS/. The Bank of Russia has developed a mechanism of reorganization of insurance companies, which will be similar to the new mechanism of financial recovery of banks – through direct capitalization of the company at the expense of the Central Bank or by attracting external investors.

Approaches to rehabilitation of insurers were discussed Thursday at a meeting of the expert Council on insurance under the Bank of Russia, the press service of the regulator.

“(Resolution mechanism) will be used against companies whose departure from the market could lead to growing social tension and the emergence of systemic problems in the insurance market as a whole, and in separately taken region”, – the press service quoted Director of the Department of insurance market Igor Zhuk.

Also, the participants of the expert Council discussed the possibility sanitize insurers at the expense of compensation funds, which are formed by the professional associations of insurers.

The introduction of the procedure of financial recovery in the insurance market aimed at maintaining the stability of the industry and will become an efficient mechanism of protection of rights and interests of policyholders, the report says CB. For the implementation of this mechanism will require changes in the bankruptcy law and in certain legislative acts.