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Common insurance market moves closer for six states of Eurasia bloc

MOSCOW, December 10. /ITAR-TASS/. Proposals to develop a common insurance market are moving closer to fruition among the six-state Eurasian Economic Community.

A Russian government legislative commission has approved draft law to ratify a protocol signed four years ago to align institutions and procedures across Russia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

Proposals from Russia's foreign and finance ministries await Cabinet discussion, the government website says, noting the aim of ensuring greater access to market services for member nations of the EurAsEC community.

“The bill proposes ratifying the protocol on formation of a common insurance market of the Eurasian Economic Community member states, signed in Minsk on November 27, 2009,” the government statement says.

“The protocol provisions stipulate an international legal basis for creation of the EurAsEC common insurance market, necessary procedural and institutional conditions for development of integration processes in the insurance sphere and adoption of measures concerning protection of rights and interests of the insurance market members," it says.

Adopting the new standard would make it possible "to bring insurance legislation in line with international standards and international insurance practice, co-ordinate member states’ activities, establish general licensing principles for insurance (reinsurance) organisations, establish uniform requirements for authorised capital formation procedure, solvency and financial stability, risk-sharing with non-resident reinsurers and protection of rights and interests of insurance consumers,” the statement goes on.

The Eurasian Economic Community is an international organisation that ensures multilateral economic co-operation among its member states. The EurAsEC originated from the Commonwealth of Independent States (CIS) Customs Union of Belarus, Russia and Kazakhstan on March 29, 1996. The treaty establishing the Eurasian Economic Community was signed on October 10, 2000.

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